For ERS Tier 3 and 4 Members
(Articles 14 and 15)
Final Average Salary (FAS)
Your pension is based on your years of credited service, your age at retirement and your final average salary (FAS). FAS is the average of the wages you earned during any 36 consecutive months of service when your earnings were highest. This is usually the last three years of employment.
If the wages in any year included in the 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.
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;
- Noncompensatory overtime earned for each year in the FAS period;
- Longevity payments (maximum of three), if earned in the years used in the FAS calculation; and
- Up to 30 days vacation, if the FAS is based on the 36 months immediately preceding retirement.
The following types of payments are not considered regular compensation and, in most cases, will not be included in your FAS calculation.
- 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.