Average Final Compensation Sample Clauses
The "Average Final Compensation" clause defines how an employee's average earnings are calculated for the purpose of determining retirement or pension benefits. Typically, this involves averaging the employee's salary over a specified period, such as the last three or five years of employment, or the highest-paid consecutive years within a set timeframe. This calculation ensures that benefit amounts reflect the employee's typical earnings near the end of their career, providing a fair and predictable basis for retirement payouts and preventing manipulation of benefits through short-term salary increases.
Average Final Compensation. The Firemen and Policeman Pensions Act (MCLA 38.551), Section 6(1)(f), as amended for Fire Department members providing that “average final compensation” shall mean the average of three (3) years of highest annual compensation received by the member during their ten (10) years of service immediately preceding their retirement or leaving service, is hereby adopted for the Employees upon execution of this agreement.
Average Final Compensation. 1. Average Final Compensation for Employees hired before January 1, 2010 will be calculated to include:
a. Base Wage
b. Firefighter Training Pay (Maximum $500.00)
c. Holiday Pay
d. Uniform Allowance (Maximum $1250.00)
e. Pay for unused sick time according to the schedule in Article 12
f. Pay for unused vacation leave as specified in Article 13 g. EMT Bonus Paramedic Allowance Pay
Average Final Compensation. No payment of accumulated annual leave banks will be included in Average Final Compensation when computing retirement benefits.
Average Final Compensation. The average of the employee's five (5) highest annual compensations calculated for either five (5) calendar years or five (5) anniversary years.
Average Final Compensation. Equals one-fifth of your normal pay during the 260 weeks of Company service that results in the highest average.
Average Final Compensation average of the 5 highest years of the last 10 years of credited service.
Average Final Compensation. The City agrees that it will amend the language of the pension plan ordinance no sooner than sixty (60) days after the ratification date of this 2010-2013 Agreement, to change the definition of “Average Final Compensation”, for overtime hours earned after January 1, 2011, so that the number of overtime hours that will be used for retirement benefit calculations for any member shall be limited to a maximum of three hundred (300) hours annually.
Average Final Compensation. For employees retiring on and after July 1, 1993, provision shall be made that average final compensation shall be the average of the highest final average earnings as defined in Article VII, Section 4 paid a member by the City during a period of three (3) years of credited service contained within his ten (10) years of credited service rendered immediately preceding his retirement. If a member has less than three (3) years of credited service his average final compensation shall be the average of total final average compensation paid by the City.