Ga. Comp. R. & Regs. R. 513-5-1-.14 - Calculation of Member's Two-Year Average Salary

(1) Select a two-year period of twenty-four (24) consecutive months with the highest salary. It is not necessary that all months have a salary amount.

(2) Determine the amount of service credit involved during this period. If the service credit is two or more years, then deal only with this period. If the service credit is less than two years, add additional consecutive months to the period until you have a minimum of two years of service credit.

(3) The only allowable salary during this period is the salary actually earned during this time. In cases where salary for retroactive pay or deferred summer pay have been reported during this period, only the salary actually earned can be counted in determining the salary amount for the period.

(4) Determine base year salary. The base year for average salary computation is the fiscal year preceding the first July 1 cap appearing in the two-year average salary period. Note: If the fiscal year to be used as the base year is not a full year of service credit, annualize the salary and use as a base year.

(5) Multiply base year salary by one (1) plus the percent cap of salary increase adopted by the Board of Trustees for the fiscal year being considered to produce the allowable salary for that year. If the year being considered is a complete year, then the full amount of the allowable salary is to be compared to the actual salary made for that year. If the year is not a complete year, then only the pro rata amount of the allowable salary is to be compared to the actual salary made for that year.

(6) Multiply the annual allowable salary produced by Step (5) by one (1) plus the percent cap of salary increase adopted by the Board of Trustees for the next fiscal year and continue in same manner as Step (5). For any salary after the second fiscal year, proceed as in Step (5) using zero as the percent cap. Note: Apply percentage to full year salary.

(7) Once all allowable salaries have been determined, add the allowable salaries for the period and divide by 24. The result is the average monthly salary to be used in the benefit calculation.

(8) Apply the salary limitations on a July thru June fiscal year basis since appropriations bills, upon which the maximum allowable increases will depend, are always applicable to a July thru June fiscal year. The "base year" - the year previous to the year for which the allowable salary is being determined is to be a July thru June fiscal year in every case.

(9) All references to salary refer to those salaries for which employee contributions have been reported to TRS and which qualify as "Earnable Compensation" as defined in O.C.G.A. 47-3-1.

Notes

Ga. Comp. R. & Regs. R. 513-5-1-.14

O.C.G.A. Secs. 47-3-26, 47-3-120.

Original Rule entitled "Calculation of Member's two-Year Average Salary" effective on August 21, 1984; was filed on December 23, 1985. Amended: F. May 27, 1994; eff. June 16, 1994.