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Overtime Pay and Your Pension Benefit

Apr 27, 2021, 13:37 PM by MOSERS
Is overtime included when figuring for an employee's retirement, or is their regular salary for the highest 36 consecutive months used in the calculation?

Yes, overtime can increase a member’s pension benefits.

Retirement benefits for general state employees are calculated using a three-part formula: Final Average Pay (FAP)  x credited service  x  a multiplier =  Monthly Base Benefit

To calculate your pension benefit, we will use your highest 36 full consecutive months of pay – wherever that occurs in your individual pay history

In identifying your “high 36” months, overtime pay is included in the pay period for which it was earned. 

The multiplier for general state employees in MSEP is 1.6%; it is 1.7% for general state employees in MSEP 2000 and MSEP 2011.

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