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This entry was published on 2024-05-03
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SECTION 608
Final average salary
Retirement & Social Security (RSS) CHAPTER 51-A, ARTICLE 15
§ 608. Final average salary. a. A member's final average salary shall
be the average wages earned by such a member during any three
consecutive years which provide the highest average wage; provided,
however, if the 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 ten percent, the amount in excess of ten
percent 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 members of the New York state and local employees'
retirement system and the New York city teachers' retirement system, a
member's final average salary shall be equal to one-third of the highest
total wages earned by such member during any continuous period of
employment for which the member was credited with three years of service
credit; provided, however, if the wages earned during any year of
credited service included in the period used to determine final average
salary exceeds the average of the wages of the previous two years of
credited service by more than ten percent, the amount in excess of ten
percent shall be excluded from the computation of final average salary.

c. 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,
provided that this subdivision shall not apply to a New York city
revised plan member of the New York city employees' retirement system or
a New York city revised plan member of the New York city teachers'
retirement system.

d. Subject to the provisions of subdivision c 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, a member's final average salary shall
be determined pursuant to the provisions of paragraph fourteen of
subdivision e of section 13-638.4 of the administrative code of the city
of New York, provided, however, that the applicable provisions and
limitations of the term "wages", as defined in subdivision l of section
six hundred one of this article, shall apply to such determinations of
final average salary.

e. With respect to a member covered by the provisions of section six
hundred five-c of this article, final average compensation shall be the
average wages earned by such a member during any five consecutive years
which provide the highest average wage; provided, however, if the wages
earned during any year included in the period used to determine final
average compensation exceeds that of the average of the previous two
years by more than ten percent, the amount in excess of ten percent
shall be excluded from the computation of final average compensation.