New York State and Local Retirement System

News from the Retirement System

The Deficit Reduction Plan and Final Average Salary

Final Average Salary (FAS) is the average of a member’s three highest consecutive years of earnings, subject to limitations, and are usually the last three years prior to retirement.

CSEA Members: FY 2011–12 Deficit Reduction Plan Reduced earnings and five fewer days worked will be reported to us for fiscal year 2011–2012. If this year falls within an FAS calculation, we will take five days and the equivalent salary from the prior year, so we have an entire year of salary and days worked. There will be little or no impact on the FAS.

FY 2012–13 Deficit Reduction Plan Since the salary reduction in fiscal year 2012–2013 will be repaid beginning in 2016 or upon separation, days worked will not be reduced when reported. If an FAS falls within this year, the reduction will have no impact.

PEF and M/C Members: FY 2011–12 and FY 2012–13 Deficit Reduction Plans Although reduced earnings will be reported to us for fiscal years 2011–2012 and 2012–2013, since the salary will be repaid beginning in 2015 or upon separation, days worked will not be reduced when reported. If the reduction or repayment periods fall within an FAS calculation, we will attribute the repaid salary to the appropriate time period. There will be no impact on the FAS.

News from the Retirement System

The Deficit Reduction Plan and Final Average Salary

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