If you receive a retention bonus, does that count towards your high 3 years of salary earned

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As a FERS title 32 employee i am receiving a 10% retention bonus for 1 year. Does this count towards my top 3 earnings for my retirement pay?

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Asked on February 8, 2019 2:15 am


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In Chapter 30 of the CSRS FERS Handbook the definition of basic pay is the pay fixed by applicable law or regulation. It then goes on to list what is included or excluded in basic pay. Special pay established for recruiting and retention purposes under 5 U.S.C. 5303 is included. Bonuses are excluded. OPM’s authority may establish higher rates of basic pay-special rates-for a group or category of General Schedule (GS) positions in one or more geographic areas to address existing or likely significant handicaps in recruiting or retaining well-qualified employees. OPM may establish special rates for nearly any category of employee-i.e., by series, specialty, grade-level, and/or geographic area. Your retention bonus does not qualify to add to your high-3 as it is not part of your basic pay.

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Answered on February 8, 2019 3:22 pm