What Is The High 3 Retirement Plan? 
You are probably referring to a defined benefit pension plan that uses the highest three years of earning as a factor in the benefit formula . Defined benefit plans , although quickly disappearing , compute the benefit by using a formula . The earnings on the fund are immaterial to the participant . Members do not have separate accounts in a defined benefit plan . Normally the benefit is a combination of factors , age , years of service and perhaps others , which is then multiplied by salary . In this case it is the average of the highest three years of salary . That then becomes the starting benefit . 