State Correction Officers and Security Hospital Treatment Assistants Plan
For ERS Tier 3 and 5 Members (Article 14-CO)
Final Average Salary (FAS)
Your pension is based on your years of credited service and your final average salary (FAS). FAS is the average of the wages you earned during any 36 consecutive months of correction service or security hospital service when your earnings were highest. This is usually the last three years of employment.
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 FAS period;*
- Holiday pay;
- Noncompensatory overtime earned in the FAS period;* and
- Longevity payment (maximum of three), if earned in the years used in the FAS.
*For Tier 5 members, the total amount of overtime and noncompensatory overtime is limited to $15,000 for calendar year 2010. Thereafter, the maximum reportable overtime payment increases by 3 percent each calendar year.
The following types of payments are not considered regular compensation and, in most cases, will not be included in your FAS:
- Unused sick leave;
- Payments made as a result of working your vacation;
- Any form of termination pay;
- Payments made in anticipation of retirement;
- Lump sum payments for deferred compensation; and
- Any payments made for time not worked.
If the wages in any year included in the FAS period exceed the average of the previous two years by more than 10 percent, the amount in excess of 10 percent is excluded from the computation of your FAS.