Relocation For High Three Retirement

[Sytes]

Rambling session for retirement purpose. a few months until I must share my intent:

Wife and I have been discussing our next step as I near the completion of a four year temp detail assignment outside our home state of Montana. I need my high three (Federal) as I near retirement and locality pay is part of the equation. We are currently temp stationed in Canada. We were right on the fence for Spain though for sake of proximity to our home residence and family, we chose Canada.
Wife broke out the excel and cracked open the following details to aid our decisions:

• Locality %
• Avg high three salary
• Combined est. State income tax
• State / local sales tax
• State property tax
• State tax based on $3k eligible monthly purchase over 3 years
• Estimated pension w/ survivor benefits

I've edited out specific $ though gives an idea of our location options and mainly tax valuations. This does not take into account my TSP, other retirement investments, nor wife's salary, it's strictly pension over 20 years (mandatory retirement). Wife's the bread winner exec and has another 10 years to go. Gov't bridges me over to age 62 - at that time the actual retirement plays with Social Security, etc.

We hummed over San Francisco as it results in a 10% monthly gain simply for three years suffering another major metropolis. The bay offers many opportunities for kayaking, the southern East side of the bay offers kayaking, hiking, cycling, hunting, camping all within the bay onwards 1/2-3 hours away. 10%... suffer through three years then back to Montana or ?. Ugh! Neither of us are keen on city life and tight residence.
We would rent and that posed the big Q that brought us to bow out of San Fran... $5k a month rent vs buying elsewhere and paying $1.5-3k mortgage. Even at the top end monthly, $1K to max out my TSP contributions, another $1k into our other investments, or use $2k to purchase another property. Thus, from a pure financial position, we ruled out San Fran.

Ok... so next up, we can work through three years in the belly of the Federal beast - Washington D.C. area and suffer the SES dill-holes, suck-up GS-15+ desk jockeys, pricks who pencil push and place their boot print on the backs of the working Fed employees throughout the U.S.. I swear, this is ass-kissing, brown nose D.C. land. on the major plus side, I would bump up another pay grade +1 step, making me a neighbor to the 15 toads. This offers a quality boost in pay with a great pension. Can we do it for three years? I don't know if I could keep my pie-hole shut to keep this from becoming a challenging work setting for three years. However, I'm currently tolerating some real, "winners" in management. though it would be my current work setting on steroids, based on a buddy who is in the D.C. circus.
My wife (and psychologist - haha!) are not fans for my well-being to stick through this sewage of ass-kissing - and, non bargaining position - joining the ranks of those I really do not respect, even if for three years and gone. I've been a strong Union advocate too long and seen the innerworkings of the waste to join them. But... but, high three years and gone!

That said, the above lengthy spewing of distaste is still on the table, unless NSA hacks into this forum and black flags me. However, I would likely retain several years of my life if they did!

So, L.A., no. Houston? Limited for days off escape to mountains, camping, etc from work and humidity, we're not fans of heat topped with humidity. San Diego? No. Boston? close to the D.C. however, holds some options mixed with New Hampshire - coastal fun with adventure not too far away, ALASKA... I'll round back to that, Seattle / Anacortes - holds some great opportunities, Denver? Yes, on the list and anything below that... $$$ for retirement, might as well return to Montana and disregard pushing for high three pension.

On our block for primary consideration in the current order of interest:

1. Alaska (Anchorage area).
2. Denver area
3. SeaTac area

If you read through this far - I applaud you! Haha! I am spewing / rambling as I sit considering in a few months I must notify the powers that be, we are ready to return home / alternate State-side location and have our location(s) selected. I keep reverting to D.C. area. It's only three years! though wow! What an ugly three! Decisions must be made. The good aspect? Full relocation is paid.

 

[Sytes]

1. Alaska (Anchorage area).
2. Denver area
3. SeaTac area

I've left this for my wife to take lead as her employment and enjoyment factor plays 100% into my enjoyment.
Surprisingly, and with interesting support from her family, Anchorage area is #1. She wrote it off a few months ago when we first began discussing our options due to the limited sun for a few months each year, though now? She has a few contacts that reside in / around Anchorage and she is currently full steam ahead to the point we're discussing purchasing our property and keeping it as our residence while holding options for second home elsewhere. Fights to/from Flathead County, MT are not near what we thought!

For myself? What can I say??? Flipping heaven! Though not expressing it so excited like during our discussions. Two friends own property on Kodiak Island, I have my basic, single engine pilot license, expand on that with bush plane / float plane education. what to say? Fishing, hunting, etc! What am I missing? What are the cold, hard facts of living in the Anchorage / Alaska area that we need to know?

 

[Addicting]

Correct me if I’m wrong but high three is your base pay grade. It is not based off from COLA or locality pay. When I retired it was paid as a E7, it had no bearing on where I lived for those three years prior.

So as a wage grade 10 or a GS11, you get what ever is published for that grade nationally.

 

[Letthemgrow]

You wrote off San Diego immediately. Just curious as to why?
Obviously, there is a big difference between SD and SF.

Not sure what you do but kind of surprised it's only a 10% bump to move to California.
My wife was a VA nurse and many of her older co-workers went to California at the end of their careers because the pay difference was so great.
Some even lived in camping trailers to avoid the housing cost problem.

I live in Seattle now and the winter gloom is significant. Anchorage has to be much worse.
Something to consider, because it's real.
Although if you will only spend 3 years there it would definitely be doable.

 

[Werty]

Alaska, I've lived there 2 years. I would like to go back for a few years again.

 

[Sytes]

Correct me if I’m wrong but high three is your base pay grade. It is not based off from COLA or locality pay. When I retired it was paid as a E7, it had no bearing on where I lived for those three years prior.

So as a wage grade 10 or a GS11, you get what ever is published for that grade nationally.

Sorry for the bold text in the quoted portions - I tried to dial it down though unable. Not intended to boom out as much as it shows. though yes, locality is part of the high three.

edited to simplify - my OPM selection was not the portion intended to share.

How to Calculate FERS Federal Retirement High-3

Learn how to accurately calculate your high-3 salary for your FERS pension as a federal employee. Understand the key factors in your federal retirement.

www.planwellfp.com

How Do You Calculate Your High-3 Salary for Federal Retirement?​

Steps to Calculate Your High-3 Salary​

Calculating your High-3 salary involves a few straightforward steps. First, identify the highest-paid three consecutive years of your career. Next, total your basic pay and locality pay for each of those three years. Then, divide the combined total by three to get your high-3 average salary. Be sure to only include pay that counts towards your basic pay and exclude bonuses, overtime, or other extra payments.

Does my ‘High-3′ FERS calculation include locality pay boost?

Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service.

www.federaltimes.com

“Is the High 3 FERS Disability Retirement based on basic pay or adjusted basic pay (which includes the locality pay)? Both show up on my check stub.”​

Reg’s Response​

Your high-3 is based on the average of your highest three consecutive years of pay from which retirement deductions are taken. As a rule that includes basic pay and locality pay. You can confirm that this is true for you by looking at your pay slip to see if retirement deductions are taken from both.

 

[elkantlers]

I wouldn't live anywhere I didn't like for an extra 10%.

 

[Sytes]

I live in Seattle now and the winter gloom is significant. Anchorage has to be much worse.
Something to consider, because it's real.
Although if you will only spend 3 years there it would definitely be doable.

That is one of the leading concerns for Seattle - the constant rain / cloudy weather.

edit added: This is what weather reports average annually though to hear from people who live in/around would be great to get a feel for thoughts.


It's good to know about Anchorage. Wife is going to fly out there in February to stay for a few weeks. See how she feels about the darkness. Supposedly, based on annual weather, it seems to differ from Seattle weather though hoping some Anchorage area people might chime in.

 

[Sytes]

Not sure what you do but kind of surprised it's only a 10% bump to move to California.

Also: "Rest of the U.S." locality is 17%. Add an additional 19% to live in Los Angeles.

General Schedule

Welcome to opm.gov

www.opm.gov

 

[Flatbrimmer]

You do not want to be in the Bay Area. Beliiiiieeeevvve dat.

 

[Keep on]

I see WV on your list. There are a lot worse places to spend 3 years.
Close enough to airports and city like if you need some, but the people are great and the hunting isn't terrible.
No way I could do even 1 year in CA or DC.

 

[ChaosOneZero]

if you’re willing to commute, you could take a job in DC and commute from well outside WMA. I work in DC/northern VA and live in the Eastern Panhandle of WV. Moving from Prince William county to WV was the best decision we’ve ever made (after living in NoVA for 8 years). It’s country living while getting DC locality pay.

 

[Sytes]

I see WV on your list.

I have two settings for location:
The normal is set; so long as it has slots available - that is the common straight placement when returning from outside the U.S.. The other is competitive w/ others within the agency who qualify, vying for the location as well.
I applied for the W.Virgina area and referred for consideration though we'll see if that option rolls in.

West Virginia is still in our thoughts. A couple associates work out of the area. Housing is not bad, locality pay is great, and a variety of activities surround, as you mentioned.

 

[Kaitum]

Correct me if I’m wrong but high three is your base pay grade. It is not based off from COLA or locality pay. When I retired it was paid as a E7, it had no bearing on where I lived for those three years prior.

So as a wage grade 10 or a GS11, you get what ever is published for that grade nationally.

When I worked for the feds in Anchorage, the government was in the middle of switching from COLA to locality pay. I was still early enough in my career I didn't pay attention to the difference much but folks were telling me locality pay counted towards your retirement whereas COLA did not. I didn't plan on retiring there so I was more interested in the COLA.

 

[Salmonchaser]

Anchorage is tough, winter is long. Winter is dreary but not as bad in Seattle. Not sure it's worth the heartache myself. Nice thing about Seattle you can drive over to the dry side for the weekend kind of thing, lots of flights to Tucson or phoenix as well to dry out.

 

[Sytes]

I wouldn't live anywhere I didn't like for an extra 10%.

That extra 10% calculates around 4-500$ a month for retired days. I'm not prior military so medical is not free and that covers a good chunk.

That three years is my sticking point for a few areas. Suck up 3 for $4-500 a month more?

Anchorage is tough, winter is long. Winter is dreary but not as bad in Seattle. Not sure it's worth the heartache myself. Nice thing about Seattle you can drive over to the dry side for the weekend kind of thing, lots of flights to Tucson or phoenix as well to dry out.

This is great information! Much appreciated. Would February be a good time for her to experience this or earlier? Would a few weeks give her a feel for it or is this more an observation of the year round impression?

Are there better areas? South of Anchorage - such as Juneau? Is that any better or same?

 

[Hem]

I hear Oklahoma is nice.
Though we watched Twister last night.

 

[Dave N]

That extra 10% calculates around 4-500$ a month for retired days. I'm not prior military so medical is not free and that covers a good chunk.

That three years is my sticking point for a few areas. Suck up 3 for $4-500 a month more?



This is great information! Much appreciated. Would February be a good time for her to experience this or earlier? Would a few weeks give her a feel for it or is this more an observation of the year round impression?

Are there better areas? South of Anchorage - such as Juneau? Is that any better or same?

February is a good time to see what winter is like. You could fight the tourists and watch the start of the Iditarod. Maybe catch the lights. It will be a slow time otherwise because lots of things are only open during tourist season. Juneau is a fly-in/fly-out city. No real "easy" way to go anywhere else if you live there.

 

[Bambistew]

The sun shines in Anchorage about 50 days a year if you're lucky. We get about 12 days above 70. You get used to it but even when it's sunny it's nothing like sun in the west.

You'll be isolated and it's expensive to leave. Airline tickets tend to be about 25-50% more. But you can find deals.

Most people who move here leave in 4-5 years due to missing family.

Everything is more expensive, period. When we go south we always remark how much cheaper it is. A few extra $100 a month won't make up for much.

Shipping is expensive, if they even ship to AK.

February is usually pretty dry, and sunny and daylight is coming back. Come in early January if you want to experience the darkness.

You could pay me enough to live in Juneau. You're hostage. No where to go what doest cost $$$.

I couldn't image retiring here on purpose. Health care is 2x as much or more, and while we have decent medical care, there are few specialists, and you'll like have to go out out of state and your insurance will likely not cover your travel cost or have some BS small limit.

Having a plane or boat helps. Maintaining one is expensive and so is renting a hanger.

Seasons are short. You get about 12 week in the summer and fall, and about 24 in the winter to play. Spring and fall can be challenging with snow conditions, and things to do until it melts. So play hard when you can.

On the bright side there is a lot of unique experiences to be had and it's all what you make of it.

 

[Spitz]

I'm halfway through a TDY in DC. Happy to talk specifics if you want to reach out.

If you planned on 3 years in Anchorage there would be some fun to be had but the acquisition of residency isn't easy. You'd have to time it right to be able to enjoy the hunting benefits on year 2.

So many personal variables involved in these decisions . . .if your wife is the main bread winner anyway I'd say live wherever you want to. Giving up three years in prime middle aged health is a big sacrifice for a few hundred bucks a month down the road.