Your pension is based on your years of credited service and your final average salary (FAS). For members in Tiers 2, 3 and 5, your FAS is the average of your highest three consecutive years of earnings. For Tier 6 members, your FAS is the average of your highest five consecutive years. Usually these are the years right before retirement, but they can be anytime in your career.
Your FAS can include, but is not limited to, the payments listed below. Payments must be earned in the FAS period.
- Regular earnings;*
- Compensatory overtime;
- Holiday pay; and
- Longevity pay.
The following payments are not part of your regular compensation. In most cases, they 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; and
- Any payments made for time not worked.
*Tier 6 members: Any earned compensation that exceeds the Governor’s annual salary — currently $179,000 — is excluded, as are earnings from more than two participating employers.
**Tier 5 and 6 members: The total amount of overtime and compensatory overtime that can be included in your FAS calculation is limited to 15 percent of earnings.