For annuity purposes, salary consists of regular straight-time earnings. Overtime and other types of salary 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 the 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

Final Average Salary for Tier 1 members is computed 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

Final Average Salary for Tier 2 members is computed 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 limited to $123,489.18 as of 01/01/2023.  A member does not pay contributions on wages above this limit. The limit is also applied when the Fund calculates a member’s benefit. Please review Tier 2 Membership for further information.

Tier 3 Final Average Salary

Final Average Salary for Tier 3 members is computed 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 limited to $123,489.18 as of 01/01/2023.  A member does not pay contributions on wages above this limit. The limit is also applied when the Fund calculates a member’s benefit. Please review Tier 3 Membership for further information.