Final Average Salary

Tier One Members

If you are a Tier One member A PERS member who began his or her six-month waiting period before January 1, 1996., your monthly final average salary (FAS) will be the greater of these amounts: (1) your average gross salary or adjusted total gross earned over the three calendar years in which you received the largest total salary from one or more PERS-participating employers, even if one of those years was less than a full calendar year Twelve calendar months commencing on January 1 and ending on December 31. or (2) your total gross salary or adjusted total gross earned over the last 36 months divided by the actual number of calendar months of active service within that 36-month period.

To be included in Tier One monthly FAS calculations, payments must be made within 31 days of separation from employment. Calculations will include any lump-sum payments for accrued vacation time and accrued compensatory time. An adjusted value of accumulated unused sick leave may be included if your employer participates in the sick leave program. Employee contributions are salary for FAS purposes. Member-paid contributions, because they are deducted from the member's pay, are already included in salary. Employer-paid contributions are considered additional salary.

Tier Two Members

If you are a Tier Two member A PERS member who began his or her six-month waiting period on or after January 1, 1996, but before August 29, 2003. and you do not work for a local government, as defined in ORS 174.116, your monthly FAS will be the greater of these amounts: (1) your average gross salary or adjusted total gross earned over the three calendar years in which you earned the largest total salary from one or more PERS-participating employers, even if one of those years was less than a full calendar year, or (2) your total gross salary or adjusted total gross earned over the last 36 months divided by the actual number of calendar months of active service within that 36-month period. Subject salary attributed to any pay period that occurs before the first full pay period included in the three calendar years or at the beginning of the last 36 calendar months of active membership is excluded.

To be included in final average monthly salary calculations for Tier Two members who are not employed by a local government, payments must be made within 31 days of separation from employment. Calculations do not include lump-sum payments you received for accrued vacation time during the period of time used to calculate FAS. An adjusted value for accumulated unused sick leave may be included if your employer participates in the sick leave program. Employee contributions are salary for FAS purposes. Member-paid contributions, because they are deducted from the member's pay, are already included in salary. Employer-paid contributions are considered additional salary.

If you are a Tier Two member who works for a local government, as defined in ORS 174.116, your monthly FAS will be the greater of these amounts: (1) your average gross salary or adjusted total gross earned over the three calendar years in which you earned the largest total salary from one or more PERS-participating employers, even if one of those years was less than a full calendar year, or (2) your total gross salary or adjusted total gross earned over the last 36 months divided by the actual number of calendar months of active service within that 36-month period.

In determining salary to be included in monthly FAS calculations for Tier Two members who are employed by a local government, the timing of payments is not relevant as salary is considered when earned. Calculations do not include lump-sum payments you received for accrued vacation time during the period of time used to calculate FAS. An adjusted value for accumulated unused sick leave may be included if your employer participates in the sick leave program. Employee contributions are salary for FAS purposes. Member-paid contributions, because they are deducted from the member's pay, are already included in salary. Employer-paid contributions are considered additional salary.