Your average final compensation (AFC) is an
important part of the formula used to calculate your retirement benefit.
When you retire, your annuity checks will be based on
information received up to that point. This is called estimated status.
After your employer submits your final
earnable compensation information, retirement contributions for your 12
highest consecutive quarters of earnable compensation will be audited.
Your AFC may be adjusted after the audit if any of the contributions
included in the AFC calculation were for any payments not considered a
part of your regular salary base. Your AFC also will be adjusted
accordingly to include payment for your unused annual leave according to
statute.
As a result of the information received from
your employer and the audit of the contributions for your 12 highest
consecutive quarters of earnable compensation, your retirement benefit
will be finalized. The final amount may be less than, or more than, your
estimated benefit.
