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Calculating Your FAP

Aug 26, 2025, 16:00 PM by MOSERS
For active employees that had the new incentives added to their salary, what is used for retirement calculations? Is it Base Pay only or Base Pay + Incentives? If it’s the latter with “Base Pay + Incentives,” when will MOSERS be updated to show that?

Final Average Pay (FAP) is defined as the average of your highest 36 full consecutive months of gross compensation. While this period often corresponds to your last three years of employment, MOSERS reviews your entire pay history to identify the 36 highest consecutive months for this calculation.

When calculating your FAP, MOSERS uses your gross salary (total earnings before deductions for taxes, health insurance, or cafeteria plans) and includes any recurring pay events such as overtime, shift differentials, and years-of-service pay. 

Yes—your regular pay and years-of-service pay are considered salary and wages for work performed and are factored into the calculation. Since the salary increase is recurring and part of your gross pay, it will be included in your FAP. 

Regarding your second question, MOSERS has received and processed payroll through the pay period ending July 31 for employees paid out of the SAM II payroll system. Therefore, the years-of-service pay should be updated in MOSERS’ records.
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