NYC TRS Final Average Salary Calculation: Three-Year vs Five-Year FAS by Tier

Your Final Average Salary is the single biggest variable in your pension calculation. It determines the dollar amount that gets multiplied by your service credit and benefit factor. Getting the FAS window right — and understanding which years count — is the difference between running accurate retirement numbers and being surprised by a smaller check.

How FAS Works by Tier

NYC TRS uses your highest consecutive years of pensionable earnings, averaged, as your FAS. The number of years in the window depends on your tier:

The key change: Tier VI members originally had a 5-year FAS calculation. The 2024 State Budget restored parity with Tier IV by switching Tier VI to a 3-year FAS. If you are a Tier VI member and your earlier estimates used a 5-year average, your FAS will likely be higher under the new 3-year formula.

The 10% Salary Cap (Tiers IV and VI)

Tier IV and Tier VI apply a restriction to salary increases used in FAS. In any year included in the three-year FAS period, the salary amount above 10% over the average of the two preceding years is excluded. If your salary jumped more than 10% in a single year — due to a promotion, a large step increase, or moving to a higher-paying title — TRS excludes the excess from the FAS calculation.

This cap limits the effect of a single year of high earnings. It applies to each year within the FAS window individually.

Tier IV members are also subject to the 10% cap, so a large late-career raise may be partially excluded from FAS.

What Counts as Pensionable Earnings

Not every dollar on your paycheck counts toward FAS. Pensionable earnings include:

• Base salary from your regular DOE, CUNY, or charter school appointment
• Longevity differentials (tenure-based increments built into the salary schedule)
• Per-session pay for additional teaching assignments through your employer

What does not count:

• Overtime in most cases
• Stipends or bonuses not part of the regular salary schedule, depending on how they are coded in payroll

For a CAR-related payment, confirm with TRS whether the specific payment is reported as pensionable earnings before including it in an FAS estimate.

If you are unsure whether a specific pay component counts, check your Annual Benefits Statement on MyTRS. The "pensionable earnings" line items show exactly what TRS has on record for each year.

Choosing Your FAS Years Strategically

You do not choose which years go into FAS — TRS automatically uses the highest consecutive years. But you have some control over which years those are:

1. Work full years near the end. Taking a leave of absence or going part-time in your final years can pull down the average. The years must be consecutive, so a low year in the middle of two high years still gets included.

2. Time promotions and title changes. A higher salary in your final three years directly increases FAS. For Tier VI, be aware that the 10% cap may limit the impact of a large jump.

3. Check per-session earnings. If per-session pay is pensionable under your title, maximizing it in your final three years boosts FAS.

4. Verify retroactive pay. Collective bargaining agreements sometimes produce retroactive salary adjustments. Make sure retro pay is reflected in the correct year on your ABS before filing — it affects which three years rank highest.

Running Your Own FAS Estimate

Pull your last several years of pensionable earnings from MyTRS. Take the three highest consecutive years (or five, if you are a Tier VI member whose benefit was calculated before the 2024 change took effect), average them, and you have your estimated FAS.

Then multiply: FAS × service credit × benefit multiplier (which varies by tier and program). The NYC TRS Retirement Guide includes worked examples for each tier showing how FAS feeds into the full pension formula, so you can run your own numbers before your UFT consultation.

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