Post

Employer Pay Codes
Determine Whether Your Footnotes Are Included in Your Pension Calculation

When members retire, ACERA calculates their retirement allowances with the 3-factor retirement formula. One of the factors in the formula is Highest Average Monthly Salary.

Besides your gross base pay, some other pay codessometimes called “footnotes”will be included in the calculation of your Highest Average Monthly Salary.

The Public Employees’ Pension Reform Act (PEPRA), passed in 2012, requires ACERA to analyze all types of pay to determine if they will be included in this Highest Average Monthly Salary. For Tiers 1, 2, and 3, pay that is included is called “compensation earnable.” For Tier 4, included pay is called “pensionable compensation.”

How To Use These Pay Code Lists

  1. Open the attached PDF pay code list for the ACERA participating employer you work for.
  2. Find your pay code(s) by number or by name. You can press Ctrl+F to use the Find function to search for numbers or text.
  3. Each pay code says yes or no whether it’s included in the Highest Average Monthly Salary calculation. If your pay code says “yes” it will be included; if it says “no” it will not be included.

If you have questions about your pay codes/pay items/footnotes, please consult your employer’s payroll manager, as your employer is best positioned to determine whether any of the pay codes/pay items/footnotes listed below apply to your compensation package.

Commands