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How is the FAP calculated?
When you retire, you will get a monthly pension benefit for life. Your base benefit is calculated using a formula, as defined by law, using the following factors:
- Final Average Pay (FAP) – The average of your highest 36 consecutive months of pay
- Multiplier – A number established by the legislature
- Credited Service – Your years and months of credited service earned, purchased, or transferred, and unused sick leave (if applicable)
(Base benefit is the amount before any reductions, taxes, or other deductions.)
To answer your question specifically, the FAP is based on the highest 36 consecutive months in your pay history, not on fiscal years. For most people that ends up being at the end of their state service, but not always.
This does not apply to members who elect BackDROP at retirement. To be eligible for BackDROP, you must continue working in a MOSERS benefit-eligible position for at least two years beyond your normal retirement eligibility. If you elect BackDROP at retirement, any pay earned during the BackDROP period does not count in your “high 36”. BackDROP is available only to eligible general state employees in MSEP or MSEP 2000.
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- 1099-R (10)
- Annual Leave (3)
- BackDrop (10)
- Board of Trustees (1)
- COLA (13)
- Credited Service (8)
- Death (1)
- Deferred Compensation (4)
- Divorce (1)
- Early Retirement (4)
- Education (7)
- Employee Contributions (11)
- Final Average Pay (8)
- Former State Employee (5)
- Funding (5)
- Leaving State Employment (18)
- Legislation (5)
- Life Insurance (11)
- Long-term Disability (1)
- Medical Insurance (6)
- Military Service (4)
- MSEP (5)
- MSEP 2000 (5)
- MSEP 2011 (10)
- Normal Retirement (21)
- Payday (4)
- Re-employment (13)
- Retirement Process (10)
- Rule of 80 (9)
- Sick Leave (4)
- Taxes (27)
- Temporary Benefit (4)
- Termination (4)
- Travel Assistance (2)
- Universities (3)
- Vesting (4)
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Disclaimer
We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.