Salary

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.

Tier 1 Final Average Salary

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

There is no limitation on the annual salary used to calculate pension benefits.

 

Tier 2 Final Average Salary

The calculation to determine a Minimum Formula Annuity uses your final average salary (“FAS”) using the highest eight consecutive years within the last ten years of service preceding retirement.

The annual salary used to calculate a pension benefit is subject to a salary cap. A member does not pay contributions on wages above this limit. For more information, see Tier 2 Membership.

 

Tier 3 Final Average Salary

The calculation to determine a Minimum Formula Annuity uses your final average salary (“FAS”) using the highest eight consecutive years within the last ten years of service preceding retirement.

The annual salary used to calculate a pension benefit is subject to a salary cap.  A member does not pay contributions on wages above this limit.  For more information, see Tier 3 Membership.

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