N.Y. Retirement & Social Security Law § 608: Final average salary

§ 608. Final average salary. a. A member's final average salary shall

be the average wages earned by such a member during any three

consecutive years which provide the highest average wage; provided,

however, if the wages earned during any year included in the period used

to determine final average salary exceeds that of the average of the

previous two years by more than ten percent, the amount in excess of ten

percent shall be excluded from the computation of final average salary.

Where the period used to determine final average salary is the period

which immediately precedes the date of retirement, any month or months

(not in excess of twelve) which would otherwise be included in computing

final average salary but during which the member was on authorized leave

of absence at partial pay or without pay shall be excluded from the

computation of final average salary and the month or an equal number of

months immediately preceding such period shall be substituted in lieu

thereof.

b. Notwithstanding the provisions of subdivision a of this section,

with respect to members of the New York state and local employees'

retirement system and the New York city teachers' retirement system, a

member's final average salary shall be equal to one-third of the highest

total wages earned by such member during any continuous period of

employment for which the member was credited with three years of service

credit; provided, however, if the wages earned during any year of

credited service included in the period used to determine final average

salary exceeds the average of the wages of the previous two years of

credited service by more than ten percent, the amount in excess of ten

percent shall be excluded from the computation of final average salary.

c. Notwithstanding the provisions of subdivisions a and b of this

section, the final average salary of an employee who has been a member

of the New York city employees' retirement system or the New York city

teachers' retirement system for less than one year shall be the

projected one year salary, with the calculation based upon a twelve

month projection of the sums earned in the portion of the year worked.

If a member has been employed for more than one year but less than two

years, then the member's final average salary shall be the average of

the first year and projected second year earnings based upon the

calculation above, and if more than two years, but less than three

years, then one-third the total of the first two years of employment

plus the projected third year's earnings, calculated as indicated above,

provided that this subdivision shall not apply to a New York city

revised plan member of the New York city employees' retirement system or

a New York city revised plan member of the New York city teachers'

retirement system.

d. Subject to the provisions of subdivision c of this section, and

notwithstanding the provisions of subdivision a of this section, with

respect to members of the New York city employees' retirement system and

the New York city board of education retirement system who are subject

to the provisions of this article, a member's final average salary shall

be determined pursuant to the provisions of paragraph fourteen of

subdivision e of section 13-638.4 of the administrative code of the city

of New York, provided, however, that the applicable provisions and

limitations of the term "wages", as defined in subdivision l of section

six hundred one of this article, shall apply to such determinations of

final average salary.

e. With respect to a member covered by the provisions of section six

hundred five-c of this article, final average compensation shall be the

average wages earned by such a member during any five consecutive years

which provide the highest average wage; provided, however, if the wages

earned during any year included in the period used to determine final

average compensation exceeds that of the average of the previous two

years by more than ten percent, the amount in excess of ten percent

shall be excluded from the computation of final average compensation.