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 calculation to determine your average monthly salary:
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The Assumptions |
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Year |
Earnings |
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The Calculation |
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$600,000 (total high-five salary) $10,000 (average monthly salary) |
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