Your pension is based on your years of credited service and your final average salary (FAS). For Tier 1, 2 and 5 members, FAS is the average of the wages you earned during any 36 consecutive months of service when your earnings were highest. For Tier 6 members, it is the average of your highest 60 consecutive months of earnings. This is usually your years of employment immediately before retirement.
The calculation of your FAS can include, but is not limited to, the following types of payments. In some cases, certain restrictions may apply.
- Regular salary;
- Overtime earned in the period used in the FAS;*
- Holiday pay;
- Longevity payments (maximum of one per FAS year) if earned in the years used in the FAS; and
- Payment for sick leave in excess of 165 days.
*For Tier 5 and 6 members, the total amount of overtime that can be included in your FAS calculation is limited to 15 percent of your salary.
The following types of payments are not considered regular compensation and, in most cases, will not be included in your FAS calculation:
- Payments made as a result of working your vacation;
- Any form of termination pay;
- Payments made in anticipation of retirement; and
- Lump sum payments for deferred compensation.