Fire Salary

What kinds of pay are considered for salary for pension purposes?

For further detail check:

TITLE 50: INSURANCE, CHAPTER I
Department of Insurance
PART 4402
DEFINITION OF SALARY

1. Base Pay - The basic salary attached to rank which is specified in the bargaining contract, municipal pay plan or any other document which establishes salary.

2. Education Pay - Additional compensation for attaining certain levels of academic and professional training, such as an associate or bachelor's degree or attainment of firefighters certification or firearm certification, or any other pay given for designated educational achievement.

3. Holiday Pay - Additional compensation paid regardless of whether the employee must work on the holiday, unless there is an option, such as time off in lieu of cash compensation.

4. Longevity - Additional pay received after the employee has attained a specified number of years of service. This pay may be received with regular salary or in one or more lump sum payments during the year. When paid in a lump sum, the amount should be prorated to determine the monthly equivalent to compute all pension contributions and benefits.

5. Overtime Pay - Compensation for time worked beyond the regular work hours, which is already included in the regular salary attached to that rank or class.

6. Specialty Rank - Compensation for services performed in positions beyond the basic rank, such as detective, juvenile officer, special instructor, shift commander, training officer, chief, emergency medical technician, paramedic, range officer or mechanic.

7. Temporary Pay - Compensation received for temporarily performing the duties of a higher rank or specialty rank. This is to be considered salary only if the temporary position has lasted for a continuous period of more than one year. After temporary pay has been received for one continuous year of service in that position, the amount is considered attached to rank and then becomes salary for purposes of pension computation.

What are non-salary compensation not considered salary for pension contributions and pension calculations?

For purposes of calculating pension contributions and pension benefits, the following categories of pay shall not be considered compensation:

1. Accumulated Unused Time - Compensation for unused accumulated vacation, sick, or personal time earned during employment, regardless of whether the compensation is received during employment or after termination.

2. Awards - Compensation for an extraordinary deed or accomplishment, which is not recurring in nature.

3. Automobile Allowance - Compensation for the use of the employee's personal automobile.

4. Food Allowance - Compensation for the purchase of meals while performing the duties required.

5. Housing Allowance - Compensation received for the purpose of providing housing, in whole or in part. The method of providing the housing, such as renting or purchasing, is irrelevant.

6. Merit Pay - Compensation which is neither fixed in amount or determined by a reviewing bargaining agreement or pay plan, nor added into the salary for determining future increases.

7. Overtime Pay - Compensation paid for working more than the regular hours specified in the contract or pay plan.

8. Shift Differential - Compensation for working a second or third shift, in addition to the salary attached to that rank or class.

9. Temporary Pay - Compensation received for temporarily performing the duties of a higher rank or specialty rank position shall not be considered salary unless and until this compensation has been received continually for one full year.

10. Uniform Allowance - Compensation received as reimbursement or payment for the purchase of necessary uniforms and equipment for use in the performance of the required duties. This compensation may be paid as reimbursement or as a fixed amount, regardless of the actual amount expended.

What about retroactive pay increases?

Entitlement to retroactive pay is to be determined by the contract or agreement which authorized the salary increase. If an employee, entitled to retroactive pay, retires after the effective date of a salary increase, the retroactive payment will be subject to contribution withholding and the new salary will be used to re-compute the pension benefits.

1. Retroactive payments of compensation are treated as if they were paid during the period for which the increase is computed. If an employee retired after the effective date of the salary increase and is entitled to receive retroactive payment of salary, the new salary becomes final salary attached to the rank at the time of retirement and the salary on which the service pension is computed.

2. Entitlement to retroactive pay is to be determined by the contract or agreement which authorizes the salary increase.