High-Five Average Monthly Salary (AMS)

Part of how we determine your retirement benefit is to use your highest five years of salary in the last ten years. For most employees, the highest five years of salary are the last five years of your employment. However, this isn't always the case.

Your average monthly salary is based on your statutory salary.
Contributions to your MNDCP, Health Care Savings Plan (HCSP), etc. do not lower your high-five average monthly salary.


How to calculate your high-five average  monthly salary
When calculating your high-five average salary, we use the highest five years of salary in the last ten years of service (5 years x 12 months = 60 months). Your employer reports your salary along with your retirement deduction each pay period to MSRS. This allows us to accurately calculate your high-five average salary.

 

Example of the calculation to determine your average monthly salary:

The Assumptions

Year
1
2
3
4
5
Total

Earnings
$118,000
  119,000
  120,000
  121,000
  122,000
$600,000

The Calculation

$600,000 (total high-five salary)
รท         60     (months)

$  10,000  (average monthly salary)