I retired as a Federal employee. The pension is calculated on base pay only, it does not include overtime. At the time under the CSRS, 7% of our base pay was deducted from our earnings, not on any overtime. This eliminates the possibility of "pension spiking".  Overtime usage is under the control of management. Anybody involved in creating overtime for suspicious reasons needs to be prosecuted. Government managers need to ensure the taxpayers are not getting ripped-off by this type of scheme.