High-Five Average Monthly Salary (AMS)

Your highest five consecutive years of salary are used to determine your retirement benefit. For most employees, the highest five consecutive years of salary will be the last 60 months (or five years) of your employment. However, this isn't always the case. For example, you may decide to work fewer hours as you get closer to retirement, or maybe you had several years where you earned overtime which will generate a higher average monthly salary


Your average monthly salary is based on your gross salary. Contributions to your MNDCP, Health Care Savings Plan (HCSP), Social Security, 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 monthly salary, we use the highest 60-month period (5 years x 12 months = 60 months) rather than a calendar or fiscal year salary. For example, your high-five average salary could start on March 1, and run through February five years later.

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
$40,000
 42,000
 44,000
 46,000
 48,000

$220,000

The calculation

$220,000  (total average monthly salary)
     รท 60 months
  $   3,666.66   ( average monthly salary)


 

Sick / vacation leave pay

  • Sick and vacation leave you use before you end your employment is included in your high-five average salary.

  • We do not take retirement deductions on unused sick or vacation leave paid in a lump sum after you end your employment; therefore, unused leave payoffs are not included in your high-five average salary.