Yes, the locality pay adjustment is included as part of your base pay when calculating your annuity. There is no adjustment made to where you live after you are retired. Although locality pay is part of the FERS annuity calculation, it's not as big of a factor as other variables that go into the benefit formula.

Does locality pay count as income?

Locality Pay is taxable. Going from COLA to Locality Pay means your taxable income is higher. Not only will you be paying more taxes – but you're likely to get hit by what I call 'hidden' tax increases. I call them hidden, because most Federal Employees won't see them until it's too late.

How much does a GS 13 make in retirement?

How much does a GS 13 make in retirement? Payment for a GS-12, Step 10, Rest of the US, is $ 95,388 in 2018. Using that as a maximum of 3, and with 30 years and under 62, that equates to an income of 28,616 $ ($ 25,754 with survivor benefit). At age 62 or older, it would be $ 31,478 ($ 28,330).