Understanding the High-3 Retirement System

Last reviewed January 15, 2025

High-3 calculates retired pay from the average of your highest 36 months of basic pay, multiplied by 2.5% per year of service, and applies to most members who entered service between September 8, 1980 and December 31, 2017.

The High-3 retirement system is a legacy (non-BRS) military retired pay plan. Instead of using your final basic pay rate, High-3 averages your highest 36 months of basic pay — typically your last three years of service — and multiplies that average by 2.5% for each year of creditable service, up to a maximum of 100% at 40 years. A member retiring with 20 years of service, for example, receives 50% of their High-3 average. Because it uses an average rather than a single final rate, High-3 is generally slightly less generous than the older Final Pay system for the same years of service, but it remains a defined-benefit, inflation-protected annuity for life. Request an official retired pay estimate from your finance office well before your planned retirement date.

General educational information only — not financial, legal, tax, medical, or individualized benefits advice. Confirm current details with DFAS, the VA, TRICARE, or your service's official retirement office before making decisions.

Official sources

Retired Pay — High-3 — Office of the Under Secretary of Defense (Comptroller)
DFAS — Retired Military & Annuitant Pay — Defense Finance and Accounting Service

Benefits information is educational only and does not replace official guidance from your service, DFAS, VA, or TRICARE. Checklists are planning aids and do not replace official service requirements. This platform does not provide tax, investment, legal, medical, or individualized claims advice, and does not predict disability ratings or VA outcomes.