Ga. Comp. R. & Regs. R. 513-5-1-.14 - Calculation of Member's Two-Year Average Salary
(1) Select a two-year period of twenty-four
(24) consecutive months with the highest salary. It is not necessary that all
months have a salary amount.
(2)
Determine the amount of service credit involved during this period. If the
service credit is two or more years, then deal only with this period. If the
service credit is less than two years, add additional consecutive months to the
period until you have a minimum of two years of service credit.
(3) The only allowable salary during this
period is the salary actually earned during this time. In cases where salary
for retroactive pay or deferred summer pay have been reported during this
period, only the salary actually earned can be counted in determining the
salary amount for the period.
(4)
Determine base year salary. The base year for average salary computation is the
fiscal year preceding the first July 1 cap appearing in the two-year average
salary period. Note: If the fiscal year to be used as the base year is not a
full year of service credit, annualize the salary and use as a base
year.
(5) Multiply base year salary
by one (1) plus the percent cap of salary increase adopted by the Board of
Trustees for the fiscal year being considered to produce the allowable salary
for that year. If the year being considered is a complete year, then the full
amount of the allowable salary is to be compared to the actual salary made for
that year. If the year is not a complete year, then only the pro rata amount of
the allowable salary is to be compared to the actual salary made for that
year.
(6) Multiply the annual
allowable salary produced by Step (5) by one (1) plus the percent cap of salary
increase adopted by the Board of Trustees for the next fiscal year and continue
in same manner as Step (5). For any salary after the second fiscal year,
proceed as in Step (5) using zero as the percent cap. Note: Apply percentage to
full year salary.
(7) Once all
allowable salaries have been determined, add the allowable salaries for the
period and divide by 24. The result is the average monthly salary to be used in
the benefit calculation.
(8) Apply
the salary limitations on a July thru June fiscal year basis since
appropriations bills, upon which the maximum allowable increases will depend,
are always applicable to a July thru June fiscal year. The "base year" - the
year previous to the year for which the allowable salary is being determined is
to be a July thru June fiscal year in every case.
(9) All references to salary refer to those
salaries for which employee contributions have been reported to TRS and which
qualify as "Earnable Compensation" as defined in O.C.G.A.
47-3-1.
Notes
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