Common use of One-Year Final Compensation Clause in Contracts

One-Year Final Compensation. A represented employee’s retirement allowance is based on the twelve (12) highest paid consecutive months under the plan. (Government Code Section 20042.) This One Year Final Compensation optional benefit shall only apply to represented employees subject to 2.7% at 55. Employees subject to 2.5% at 55 shall be subject to final compensation in accordance with Government Code Section 20037 which means the highest average annual compensation earnable by a member during the three consecutive years of employment immediately preceding the effective date of his or her retirement.

One-Year Final Compensation. A represented employee’s retirement allowance is based on the twelve (12) highest paid consecutive months under the plan. (Government Code Section 20042.) This One Year Final Compensation optional benefit shall only apply to represented employees subject hired up to 2.7% at 55ninety (90) days after the adoption of this Memorandum of Understanding. Employees subject to 2.5% at 55 hired ninety (90) days after adoption of this Memorandum of Understanding shall be subject to final compensation in accordance with Government Code Section 20037 which means the highest average annual compensation earnable by a member during the three consecutive years of employment immediately preceding the effective date of his or her retirement.