Final Average Salary

Final Average Salary (FAS) is the salary figure used in the calculation of your PSRS 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.

Determining Final Average Salary Example
Year 1$51,000
Year 2$51,000
Year 3$51,000
Final Average Salary: $153,000 ÷ 36 = $4,250

PSRS uses caps or limits on increases in salary 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.

These caps do 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
Salary Caps
School Year Salary Was EarnedSalary Cap
1997-1998 School Year through 2006-2007 School Year20%
2007-2008 School Year12%
2008-2009 School Year and after10%

Increases in salary as a result of extra duties, overloads and additional courses, and district-sponsored "career ladder" programs can cause your Final Average Salary to be capped. If you have questions about what constitutes a change in position or employer, please have your employer's business office contact a PSRS/PEERS Employer Services Analyst (ESA).