Alabama Administrative Code
Title 800 - RETIREMENT SYSTEMS OF ALABAMA
Chapter 800-2-1 - BENEFITS
Section 800-2-1-.08 - Calculation Of Average Final Compensation
Average final compensation shall be computed by determining the annual compensation actually contributed upon during the two full fiscal years in the last ten fiscal years of creditable service for which such compensation is the highest, based on the creditable retirement year period for ERS, i.e., October 1 through September 30, then computing a composite year using actual salary for the months of service in the most recent creditable year and annualizing, using a pro rata year credit and pro rata salary from the creditable fiscal year in which the annual compensation was the third highest, so as to allow the retirant the advantage of the generally higher salary during the last months of service.
Author: William T. Stephens, General Counsel, RSA.
Statutory Authority: Code of Ala. 1975, § 36-27-23(g).