Your pension is based on your years of credited service and your final average earnings (FAE). For members in Tiers 2 and 5, your FAE is the average of your highest three consecutive years of earnings. For Tier 6 members, your FAE 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 FAE can include, but is not limited to, the payments listed below. Payments must be earned in the period used in your FAE. In some cases, certain restrictions may apply (see Restrictions and Limitations):
- Regular earnings;
- Overtime earned in the period used in the FAE;
- Compensatory overtime;
- Holiday pay;
- Longevity payments if earned in the years used in the FAE calculation; and
- Lump sum payment for accumulated sick leave at time of retirement beyond 165 days (200 days for some members employed by New York State).
The following payments are not part of your regular compensation. In most cases, they will not be included in your FAE calculation:
- Unused vacation;
- 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.