Final Average Salary. Your final average salary is used to calculate a final salary pension; however, the number of years of salary that are averaged in will vary according to your plan.  The Final Average Salary (FAS) is based on the highest average of wages* earned during any three consecutive years. Payment for unused vacation, not to exceed 30 days, may be included in your FAS, if your date of membership is before 4/1/72 and the payment was made in the period used for the. . The Final Average Salary (FAS) is based on the highest average of wages* earned during any five consecutive years. Earnings in any year included in the period cannot exceed the average of the previous four years by more than 10 percent. Any amount in excess of this will be excluded. Your pension is based on your years of credited service, your age at retirement and your final average salary (FAS). is the average of the wages you earned during any 36 consecutive months of service when your earnings were highest. This is usually the last three years of employment. If the wages in any year included in the period exceed the average of the previous two years by more than 10 percent, the amount in excess of 10 percent is excluded from the computation of your. . The calculation of your. can include, but is not limited to, the following types of payments. The high-three average salary is the highest salary obtained by averaging salaries over a three-year, or 36-month, period .The 36 months must be consecutive, but not necessarily uninterrupted. In calculating the high-three, use basic salary only, with basic salary defined as compensation from which retirement deductions are taken – this would omit overtime, incentive awards, etc but would include locality pay. Also, each ending date for a salary is treated as starting date for the next salary. For most members, as in the above example, the highest consecutive months of earnings will be the last either 36 or 60 months; however, the highest months may fall anywhere within the 120 month window. Read our blog to learn more about what is and is not included in your Final Average Salary. The final average salary is calculated as either the highest 36 or 60 consecutive months of wages from and employee's last 120 months of credited service. The higher the final average salary, the greater the monthly benefit in retirement. The benefit program elected by each employer does not impact the amount of the employees’ contribution. Final Average Salary. The final average salary is calculated as either the highest 36 or 60 consecutive months of wages from and employee's last 120 months of credited service. The Final Average Salary (FAS) is based on the highest average of wages* earned during any three consecutive years. Earnings in any year included in the period cannot exceed the average of the previous two years by more than 10 percent. Any amount in excess of this will be excluded. The Final Average Salary (FAS) is based on the highest average of wages* earned during any five consecutive years. Earnings in any year included in the period cannot exceed the average of the previous four years by more than 10 percent. Any amount in excess of this will be excluded. The salary that is used in calculating the high-three average salary is shown for each relevant year on the employee's SF-50 Because an employee's salary may change in the course of a leave year-for example, a step increase-more than one SF-50 in any leave year will be needed to calculate the high-three average salary. The table below is used to calculate the high three average salary, together with an example. *360 day factor chart available from OPM's CSRS and FERS retirement handbook at www.opm.gov/retire/pubs/handbook/C050.pdf (Chapter 50, page 50). ** Retirement date. About the Author. The three-year period in which the average pay is computed starts and ends on the dates that produce the highest average pay. Note that the period need not start on the first day of the month or the date of a pay change. To determine the beginning date of the three year period, follow these steps: Step 1. The table below is used to calculate the high three average salary, together with an example. *360 day factor chart available from OPM's CSRS and FERS retirement handbook at www.opm.gov/retire/pubs/handbook/C050.pdf (Chapter 50, page 50). ** Retirement date. About the Author.
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