New York Laws
Article 14 - Coordinated-Escalator Retirement Plan
512 - Final Average Salary.

§ 512. 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.
Notwithstanding the preceding provisions of this subdivision to the
contrary, for a member who first becomes a member of the New York state
and local employees' retirement system on or after April first, two
thousand twelve, or for a New York city police/fire revised plan member,
a New York city enhanced plan member who receives the ordinary
disability benefit provided for in subdivision c-1 of section five
hundred six of this article or the accidental disability benefit
provided for in paragraph three of subdivision c of section five hundred
seven of this article, a New York city uniformed correction/sanitation
revised plan member or an investigator revised plan member, a member's
final average salary 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 salary exceeds that of the
average of the previous four years by more than ten percent, the amount
in excess of ten percent shall be excluded from the computation of final
average salary. In determining final average salary pursuant to any
provision of this subdivision, 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 employees' retirement
system who first become members of the New York state and local
employees' retirement system before April first, two thousand twelve,
the New York state and local police and fire 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
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 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. For members who first become a
member of the New York state and local employees' retirement system on
or after April first, two thousand twelve, with respect to members of
the New York state and local employees' retirement system, a member's
final average salary shall be equal to one-fifth of the highest total
wages earned during any continuous period of employment for which the
member was credited with five years of service credit; provided,
however, if the wages earned during any year of credited service
included the period used to determine final average salary exceeds the
average of the wages of the previous four 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 (other than a New York
city correction/sanitation revised plan member or an investigator
revised plan member) 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.

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
(other than a New York city uniformed correction/sanitation revised plan
member or an investigator revised plan member) 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 thirteen of subdivision e of
section 13-638.4 of the administrative code of the city of New York.