What is high-3 military retirement?

The high-3 military retirement system calculates a service member's retirement pay based on the highest average basic pay earned during any three consecutive years of service. This method emphasizes the last years of service, rewarding those who have higher earnings during that time. The retirement pay is typically a percentage of this average, multiplied by the number of years served. This system is applicable to active-duty personnel who entered service before January 1, 2018, as part of the legacy retirement system.