Final Average Salary (FAS) Cap

PSRS uses caps or limits on increases in salary during the period that is used to calculate your Final Average Salary. The caps help prevent salary spiking at the end of one's career for the purpose of increasing a retirement benefit.

How Salary Caps are Calculated
School Year Salary is Earned Salary Cap for Calculating Final Average Salary
Between 1997-1998 and 2006-2007 20%
2007-2008 12%
2008-2009 and after 10%

These caps do not apply to increases in salary that are due to:

  • a genuine change in position or employer
  • increases required by state statute
  • district-wide salary schedule adjustments for previously unrecognized education-related service

Increases in salary as a result of pay for extra duties, overloads and additional courses, and district sponsored "career ladder" programs can cause your Final Average Salary to be capped. Assuming extra duties without a position change may result in a salary cap applying to salary that exceeds the limit.

If you have questions about what constitutes a change in position or employer, please have your employer's business office contact their PSRS/PEERS Employer Service Representative (ESR).