The FAE is used under some calculations to determine a member’s retirement annuity and maximum annuity payable.
If participation first began prior to January 1, 2011:
The FAE is determined by comparing: (a) the average of the four highest-paid consecutive academic years of employment, and (b) the average of the last 48 months of employment (if applicable), using whichever is higher.
If participation first began on or after January 1, 2011:
The FAE is determined by comparing: (a) the average of the eight highest-paid consecutive academic years during the last 10 years of employment, and (b) the average of the highest 96 consecutive months during the last 120 months of employment (if applicable), using whichever is higher.