Understanding Your Final Average Pay
Are you curious about your final average pay and how it affects your future pension benefit?
Final Average Pay (FAP) refers to your highest 36 consecutive months of pay. It is also known as your high 36. This is one factor used in calculating your retirement benefit.
When you retire, you will receive a lifetime monthly pension benefit. MOSERS uses a three-part formula to calculate your monthly base benefit. This formula, as defined by law, includes the following factors:
- Final Average Pay (FAP) – The average of your highest 36 consecutive months of compensation.
- Multiplier – A number established by the legislature (1.6% or 0.016 for MSEP; 1.7% or 0.017 for MSEP 2000 and MSEP 2011).
- Credited Service – Your years and months of credited service earned, purchased, or transferred, and unused sick leave (if applicable).
When calculating your benefit, we use your highest 36 full consecutive months of pay. While this period often occurs during your last three years of employment, we will review your entire pay history to identify the 36 highest consecutive months for this calculation.
Keep in mind that if you become eligible for and elect BackDROP* at retirement, your FAP will be calculated using your months of service prior to your BackDROP date. In other words, pay (and service) during the BackDROP period is excluded when calculating your monthly benefit amount.
If you decide not to elect BackDROP, we will review your entire pay history and find the 36 months with your highest pay (whether that is before or after you reach normal retirement eligibility) and use that to calculate your monthly benefit. In most cases, opting not to take BackDROP will increase your monthly benefit amount.
*BackDROP is available only to general state employees who are members of MSEP or MSEP 2000.
If you have any questions, contact a MOSERS benefit counselor to discuss your specific situation.