Special 20- and 25-Year Plans

For PFRS Tier 2, 3 (Article 11), 5 and 6 Members, (Sections 384, 384-d and 384-e)

One-Year FAE

Special 20- and 25-Year Plans
For PFRS Tier 2, 3 (Article 11), 5 and 6 Members
(Sections 384, 384-d and 384-e)

If your employer has adopted this benefit, your FAE includes eligible payments earned in the 12 months right before you retire. Your pension benefit will be calculated based on a one-year FAE unless the three-year calculation provides a higher FAE.

Note: A one-year FAE is generally not available to Tier 6 members.

The one-year FAE can include, but is not limited to, the payments listed below. Payments must be earned in the FAE period.

  • Regular earnings;
  • Overtime;*
  • Compensatory overtime;
  • Holiday pay; and
  • Longevity pay.

The following payments are not part of your regular compensation. In most cases, they will not be included in your one-year FAE calculation:

  • Unused sick leave;
  • Unused vacation;
  • Payments made as a result of working your vacation;
  • Any form of termination pay;
  • Payments made in anticipation of retirement; and
  • Any payments made for time not worked.

The earnings used in the calculation of the one-year FAE cannot exceed the wages in the previous 12-month period by more than 20 percent. Any amount over 20 percent will be excluded from the calculation.


*For Tier 5 members, the total amount of overtime and compensatory overtime that can be included in your FAE calculation is limited to 15 percent of your earnings.