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Rule Title: CALCULATION OF HIGHEST AVERAGE COMPENSATION OR FINAL AVERAGE COMPENSATION WITH LUMP SUM PAYMENTS
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Department: ADMINISTRATION
Chapter: PUBLIC EMPLOYEES' RETIREMENT BOARD
Subchapter: Membership Service and Service Credit
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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2.43.2110    CALCULATION OF HIGHEST AVERAGE COMPENSATION OR FINAL AVERAGE COMPENSATION WITH LUMP SUM PAYMENTS

(1) Lump-sum payments made upon termination of employment for paid leave, including banked holiday time, vacation, personal, sick, or compensatory leave must be included in the calculation of a member's highest average compensation or final average compensation by replacing lower compensation months with the same number of higher compensation months. The number of replacement months and the amount of compensation included in the replacement months is determined by either:

(a) dividing the lump-sum payment by the regular hourly rate in effect for the employee at the time of termination, or the monthly salary earned at the time of termination; or

(b) for members whose monthly compensation varies, multiplying their hourly rate times 2,080 (the assumed number of hours worked in a fiscal year) divided by 12 to determine the monthly wage and then dividing the lump-sum payment by the monthly wage.

(2) Lump-sum payments made without termination of employment for banked holiday time, compensatory leave, sick leave, or vacation leave will not be considered as compensation for any purpose regardless how the payout is classified, including identifying the payout as a bonus.

History: 19-2-403, MCA; IMP, 19-2-303, 19-2-506, 19-2-1005, 19-3-108, 19-6-101, 19-7-101, 19-8-101, 19-9-104, 19-13-104, MCA; NEW, 2008 MAR p. 2467, Eff. 12/1/08; AMD, 2011 MAR p. 1678, Eff. 8/26/11; AMD, 2013 MAR p. 2235, Eff. 11/28/13


 

 
MAR Notices Effective From Effective To History Notes
2-43-494 11/28/2013 Current History: 19-2-403, MCA; IMP, 19-2-303, 19-2-506, 19-2-1005, 19-3-108, 19-6-101, 19-7-101, 19-8-101, 19-9-104, 19-13-104, MCA; NEW, 2008 MAR p. 2467, Eff. 12/1/08; AMD, 2011 MAR p. 1678, Eff. 8/26/11; AMD, 2013 MAR p. 2235, Eff. 11/28/13
2-43-455 8/26/2011 11/28/2013 History: 19-2-403, MCA; IMP, 19-2-303, 19-2-506, 19-3-108, 19-6-101, 19-7-101, 19-8-101, 19-9-104, 19-13-104, MCA; NEW, 2008 MAR p. 2467, Eff. 12/1/08; AMD, 2011 MAR p. 1678, Eff. 8/26/11.
2-43-403 12/1/2008 8/26/2011 History: 19-2-403, MCA; IMP, 19-2-506, 19-3-108, 19-6-101, 19-7-101, 19-8-101, 19-9-104, 19-13-104, MCA; NEW, 2008 MAR p. 2467, Eff. 12/1/08.
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