§ 443. Final average salary. a. The salary base used for the
computation of benefits upon retirement, hereinafter called in this
article final average salary, applicable to all members of the
retirement systems who are subject to the provisions of this article,
shall be the average salary earned by such a member during any three
consecutive years which provide the highest average salary, exclusive of
any form of termination pay (which shall include any compensation in
anticipation of retirement), or any lump sum payment for deferred
compensation, sick leave, or accumulated vacation credit, or any other
payment for time not worked (other than compensation received while on
sick leave or authorized leave of absence); provided, however, if the
salary or wages earned during any year included in the period used to
determine final average salary exceeds that of the average of the
previous two years by more than twenty percentum, the amount in excess
of twenty percentum shall be excluded from the computation of final
average salary. Where the period used to determine final average salary
is the period which immediately precedes the date of retirement, any
month or months (not in excess of twelve) which would otherwise be
included in computing final average salary but during which the member
was on authorized leave of absence at partial pay or without pay shall
be excluded from the computation of final average salary and the month
or an equal number of months immediately preceding such period shall be
substituted in lieu thereof.

b. Notwithstanding the provisions of subdivision a of this section,
with respect to the members of the New York state employees' retirement
system, the New York state and local police and fire retirement system
and the New York city teachers' retirement system, the final average
salary, shall be equal to one-third of the highest total salary earned
during any continuous period of employment for which the member was
credited with three years of service credit, exclusive of any form of
termination pay (which shall include any compensation in anticipation of
retirement), any lump sum payment for deferred compensation, sick leave,
or accumulated vacation credit, or any other payment for time not worked
(other than compensation received while on sick leave or authorized
leave of absence); provided, however, if the salary earned during any
year of credited service included in the period used to determine final
average salary exceeds the average of the salaries of the previous two
years of credited service by more than twenty per centum, the amount in
excess of twenty per centum shall be excluded from the computation of
final average salary.

c. Notwithstanding the provisions of subdivisions a and b of this
section, with respect to police officers and firefighters as defined in
section four hundred fifty of this chapter, the final average salary of
an employee who has been a member of a retirement system for less than
one year shall be the projected one year salary, with the calculation
based upon a twelve month projection of the sums earned in the portion
of the year worked. If a member has been employed for more than one year
but less than two years, then the member's final average salary shall be
the average of the first year and projected second year earnings based
upon the calculation above, and if more than two years, but less than
three years, then one-third the total of the first two years of
employment plus the projected third year's earnings, calculated as
indicated above.

d. Notwithstanding the provisions of subdivisions a and b of this
section, the final average salary of an employee who has been a member
of the New York city employees' retirement system or the New York city
teachers' retirement system for less than one year shall be the
projected one year salary, with the calculation based upon a twelve
month projection of the sums earned in the portion of the year worked.
If a member has been employed for more than one year but less than two
years, then the member's final average salary shall be the average of
the first year and projected second year earnings based upon the
calculation above, and if more than two years, but less than three
years, then one-third the total of the first two years of employment
plus the projected third year's earnings, calculated as indicated above.

e. Subject to the provisions of subdivision d of this section, and
notwithstanding the provisions of subdivision a of this section, with
respect to members of the New York city employees' retirement system and
the New York city board of education retirement system who are subject
to the provisions of this article, the final average salary shall be
determined pursuant to the provisions of paragraph twelve of subdivision
e of section 13-638.4 of the administrative code of the city of New
York.

f. Notwithstanding the provisions of subdivisions a, b and c of this
section, a participating employer may elect, pursuant to the provisions
of paragraph d of subdivision nine of section three hundred two of this
chapter, to have the provisions of such paragraph apply to the police
officers and firefighters in its employ who are subject to the
provisions of this article.

f-1. A demand in collective negotiations for the additional pension
benefit provided by subdivision f of this section shall not be subject
to the provisions of paragraph (b) or (c) of subdivision four of section
two hundred nine of the civil service law, nor shall such demand be
subject to any provision for interest arbitration contained in any local
law, resolution or ordinance adopted by any governmental entity pursuant
to subdivision one of section two hundred twelve of the civil service
law.

g. Notwithstanding the provisions of subdivisions a and c of this
section, the benefits for the first twenty years or less of service of
members of the New York city police pension fund, subchapter two, who
are subject to the provisions of this article, and members of the fire
department pension fund, subchapter two, who are subject to the
provisions of this article, shall be determined by using a salary base
equal to the salary earned by such member during the one-year period
immediately prior to retirement or separation from service due to
vesting, exclusive of any form of termination pay (which shall include
any compensation in anticipation of retirement), or any lump sum payment
for deferred compensation, sick leave, or accumulated vacation credit,
or any other payment for time not worked (other than compensation
received while on sick leave or authorized leave of absence); provided,
however, if the salary or wages earned during the one-year period
immediately prior to retirement or separation from service due to
vesting exceeds that of the previous one-year period by more than twenty
per centum, the amount in excess of twenty per centum shall be excluded
from the computation of final average salary. In determining final
average salary, any month or months (not in excess of three) which would
otherwise be included in computing final average salary but during which
the member was on authorized leave of absence without pay shall be
excluded from the computation of final average salary and the month or
an equal number of months immediately preceding such period shall be
substituted in lieu thereof.

h. Notwithstanding any general, special or local law, charter,
administrative code, agreement, resolution or rule or regulation to the
contrary, the salary base for members of the city of New York fire
department pension fund whose employment with the fire department of the
city of New York commenced on or after the first of July, two thousand
to whom this article otherwise applies shall be determined in the same
manner as the salary base for members of the city of New York fire
department pension fund whose employment with the fire department of the
city of New York commenced before the first of July, two thousand.