Does locality pay count toward my retirement high-3?
Yes. It also counts for various other purposes including: life insurance premiums and benefits; Thrift Savings Plan investments; premium pay and premium pay limitations; severance pay; advances in pay; lump-sum payments for accrued and accumulated annual leave; post differentials and danger pay allowances under certain circumstances; recruitment, relocation, and retention incentive payments; supervisory differentials; extended assignment incentives; performance-based cash awards when such awards are computed as a percentage of an employee’s rate of basic pay; maximum payable rates; promotion, transfer, and pay retention.