Earnable Compensation is the compensation paid to a member that may be included in calculating Average Final Compensation (AFC).
Here is a summary of changes to the definition of Earnable Compensation pursuant to House Bill 2, Chapter 0224, Laws of 2011.
Y – Included as Earnable Compensation.
N – Not included as Earnable Compensation.
|Type of Compensation ||Prior to HB 2 ||Vested Prior to 1/1/12 ||Not Vested Prior to 1/1/12 |
|Full Base Rate of Compensation Paid ||Y ||Y ||Y |
|Overtime Pay ||Y ||Y ||Y |
|Holiday Pay ||Y ||Y ||Y |
|Vacation Pay ||Y ||Y ||Y |
|Sick Pay ||Y ||Y ||Y |
|Annual Longevity Pay ||Y ||Y ||Y |
|Cost of Living Bonus ||Y ||Y ||Y |
|Additional Pay for Extracurricular & Instructional Activities (Teacher and Employee members employed by a school district or SAU only) ||Y ||Y ||Y |
|Military Differential Pay - No Termination of Employment ||Y ||Y ||Y |
|Fair Market Value of Employer Furnished Meals & Lodging, if Subject to Federal Income Tax ||Y ||Y ||Y |
|Supplemental Pay by Employer while Member is Receiving Workers' Comp. ||Y ||Y ||Y |
|Teacher Development Pay Not Part of Contracted Salary ||Y ||Y ||Y |
|Military Differential Pay After Employment Termination to Enter United States Armed Forces ||Y ||Y ||Y |
|Extra or Special Duty Pay (Group II members only) ||Y ||Y* ||Y* |
|Severance Pay ||*** ||*** ||N |
|Cash Incentives Paid by Employer to Encourage Member to Retire ||Y ||Y ||N |
|Pay for Unused Vacation Time ||Y ||Y ||N |
|Pay for Unused Sick Time ||Y ||Y ||N |
|End of Career Additional Longevity Pay ||Y ||Y ||N |
|Fair Market Value of Other Non-cash Compensation, if Subject to Federal Income Tax ||N ||N ||N |
|Other Compensation & Fringe Benefits Subject to Federal Income Tax ||N ||N ||N |
|Settlement Agreements ||*** ||*** ||*** |
* – Excluded if member's NHRS-eligible service commenced on or after 7/1/11. *** – Contact NHRS
Note: AFC is subject to limitations contained in RSA 100-A: 1, XVIII.