Final Average Salary
Final Average Salary (FAS) is the salary figure used in the calculation of your PEERS retirement benefits. Your Final Average Salary is determined by adding your three highest consecutive annual salaries. This includes all salary from all covered employers, as well as employer-paid health, dental and vision insurance premiums for you, the member. The total is divided by 36 months to determine your monthly Final Average Salary or FAS.
|Year 1||$ 28,000|
|Year 2||$ 28,000|
|Year 3||$ 28,000|
|Final Average Salary: $84,000 ÷ 36 = $2,333|
PEERS uses a 20% cap or limit on increases in salary used to calculate your Final Average Salary.
The cap helps prevent salary spiking at the end of one's career for the purpose of increasing a retirement benefit. The cap does not apply to increases in salary that are due to:
- A genuine change in position or employer
- Increases required by Missouri law
- District-wide salary schedule adjustments for previously unrecognized education-related service
Increases in salary as a result of overtime pay and employer-paid health, dental and vision insurance premiums can cause your Final Average Salary to be capped.