Salary Calculations

Salary Calculation for Annuity Purposes

For annuity purposes, salary consists of regular straight-time earnings. Overtime or any other types of salary payment are not included. The normal salary base is a twelve month year consisting of a five day work week of eight hours a day at a straight time rate of earnings. The normal salary base may be adjusted according to a position’s normal and established work period. The annual salary for any year is the greater of:

• The monthly, weekly, daily or hourly rate that was applicable for the greatest number of months, weeks, days or hours in the year under consideration, or
• The average of monthly, weekly, daily or hourly rate which was applicable for the total number of months, weeks, days or hours, respectively in each year under consideration.

The calculation to determine a Minimum Formula Annuity uses your final average salary (“FAS”). FAS is the highest average monthly salary for any four consecutive years within the last ten years of service immediately preceding the date of retirement.