Compilation of Rules and Regulations of the State of Georgia › Department 513 - RULES OF PUBLIC RETIREMENT SYSTEMS › Chapter 513-5 - TEACHERS RETIREMENT SYSTEM OF GEORGIA › Subject 513-5-1 - ADMINISTRATIVE RULES › Rule 513-5-1-.14 - Calculation of Member's Two-Year Average Salary

Current through Rules and Regulations filed through June 27, 2024
(1) Select a two-year period of twenty-four
				(24) consecutive months with the highest salary. It is not necessary that all
				months have a salary amount.
(2)
				Determine the amount of service credit involved during this period. If the
				service credit is two or more years, then deal only with this period. If the
				service credit is less than two years, add additional consecutive months to the
				period until you have a minimum of two years of service credit.
(3) The only allowable salary during this
				period is the salary actually earned during this time. In cases where salary
				for retroactive pay or deferred summer pay have been reported during this
				period, only the salary actually earned can be counted in determining the
				salary amount for the period.
(4)
				Determine base year salary. The base year for average salary computation is the
				fiscal year preceding the first July 1 cap appearing in the two-year average
				salary period. Note: If the fiscal year to be used as the base year is not a
				full year of service credit, annualize the salary and use as a base
				year.
(5) Multiply base year salary
				by one (1) plus the percent cap of salary increase adopted by the Board of
				Trustees for the fiscal year being considered to produce the allowable salary
				for that year. If the year being considered is a complete year, then the full
				amount of the allowable salary is to be compared to the actual salary made for
				that year. If the year is not a complete year, then only the pro rata amount of
				the allowable salary is to be compared to the actual salary made for that
				year.
(6) Multiply the annual
				allowable salary produced by Step (5) by one (1) plus the percent cap of salary
				increase adopted by the Board of Trustees for the next fiscal year and continue
				in same manner as Step (5). For any salary after the second fiscal year,
				proceed as in Step (5) using zero as the percent cap. Note: Apply percentage to
				full year salary.
(7) Once all
				allowable salaries have been determined, add the allowable salaries for the
				period and divide by 24. The result is the average monthly salary to be used in
				the benefit calculation.
(8) Apply
				the salary limitations on a July thru June fiscal year basis since
				appropriations bills, upon which the maximum allowable increases will depend,
				are always applicable to a July thru June fiscal year. The "base year" - the
				year previous to the year for which the allowable salary is being determined is
				to be a July thru June fiscal year in every case.
(9) All references to salary refer to those
				salaries for which employee contributions have been reported to TRS and which
				qualify as "Earnable Compensation" as defined in O.C.G.A.
				 47-3-1.
O.C.G.A. Secs.
				  47-3-26,  47-3-120.