What is Final Average Salary (FAS)?

Final Average Salary is a calculation that is computed at the time of a member's retirement.
It is one component in the LAGERS benefit formula:

Benefit Factor X Final Average Salary X Years of Service = Monthly Benefit for Life

How does Final Average Salary effect my retirement benefit?

The higher your average Final Average Salary, the higher your monthly LAGERS benefit.

How is Final Average Salary calculated?

At the time of retiremenet, LAGERS will look at your last 120 months (10 years) of wages. LAGERS will then pull the highest consecutive 36 months or 60 months out of those wages. The average of the highest consecutive 36 months or 60 months out of the last 120 months will be used as your Final Average Salary.

Do I use the 3 year or 5 year calculation?

Your governing body has elected either the "3-year" or "5-year" FAS. This election by your governing body applies to all employees.

Does the Final Average Salary election effect my monthly benefit?

Yes. The 3-year Final Average Salary calculation produces a slightly higher average, and therefore, a higher monthly benefit.

Can the Final Average Salary election be changed?

Yes. Your governing body may elect to change the FAS election every 2 years.

Does the 3-year FAS election change employee or employer contributions?

Employee contributions are always 4% or 0%, per an election by your governing body. The cost to the employer does increase as the level of benefits increases.

If I work for more than one LAGERS employer, which FAS is used?

Your last 120 months of service will be used, regardless of the number of LAGERS subdivisions in which you were employed.

For example: You work at "City A" for 20 years and then you leave to go to work for "City B," both are LAGERS members. You work at "City B" for 3 years and retire. LAGERS would then look at your last 10 years of wages (The last 7 years from "City A" and the 3 years from "City B"). "City B" has elected the 3 year Final Average Salary. If your 3 years at "City B" produces the highest Final Average Salary, that 3-year average will be used for all 23 years of service credit.