All > Business > Finance > Personal Finance > Retirement
Average final compensation (AFC) is the 12 highest consecutive quarters of a member’s earnable compensation divided by three. The dollar amount of up to 45 days of unused annual leave paid at retirement may be included before averaging the member’s 12 highest consecutive quarters of earnable compensation. Elected officials may use 36 consecutive months in place of the 12 highest consecutive quarters.
- Browse Related Terms: 401(k) Savings Plan and 457 Savings Plan, Average Final Compensation (AFC), Defined Contribution Plan, Direct Rollover, IRC Section 401(a), Lump-Sum Distribution, Qualified Domestic Relations Order (QDRO), Qualified Plan, Rollover, Roth 401(k) Savings Plan, Single-Sum Distribution, Tax-Deferred