If you have an employee nearing retirement, it is beneficial to pay out any compensatory time balances before or with the employee’s final salary payment. Since this pay may impact the final average pay (FAP) calculation for retirement purposes, a delayed compensatory time payout could result in the employee receiving an incorrect benefit estimate or their first benefit check.

After receiving information on a compensatory time payout, MOSERS must obtain information from you to allocate the pay to the months earned for the calculation of the FAP. Having this information as early as possible will help to make the retirement process as smooth as possible.