2023 New York Laws › RSS - Retirement and Social Security › 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.
  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,  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.
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.