What year marks the end of eligibility for the High-3 retirement plan?

What year marks the end of eligibility for the High-3 retirement plan?

• A. 1986
• B. 1980
• C. 1983
• D. 1990

Answer: (A)

The key idea here is the transition from the old Civil Service Retirement System using the High-3 final-average salary to the newer Federal Employees Retirement System (FERS). The Civil Service Reform Act of 1986 established FERS and began phasing out CSRS for new hires, with coverage under FERS starting in 1987. This means that after 1986, new federal employees could no longer opt into the High-3 CSRS retirement; eligibility for High-3 effectively ended for new entrants in that year. Those already in CSRS could continue under High-3, but for anyone hired after 1986, the High-3 option isn’t available.

The key idea here is the transition from the old Civil Service Retirement System using the High-3 final-average salary to the newer Federal Employees Retirement System (FERS). The Civil Service Reform Act of 1986 established FERS and began phasing out CSRS for new hires, with coverage under FERS starting in 1987. This means that after 1986, new federal employees could no longer opt into the High-3 CSRS retirement; eligibility for High-3 effectively ended for new entrants in that year. Those already in CSRS could continue under High-3, but for anyone hired after 1986, the High-3 option isn’t available.