The collective bargaining agreement between the Council of School Supervisors and Administrators (CSA) and the New York City Department of Education provides for performance increases for qualifying members. Performance increase payments are pensionable and considered for a member's Final Average Salary, which is used to calculate retirement benefits.

Performance increases are awarded for achievement in a specific school year but are not paid until the following school year. For the purposes of determining Final Average Salary (FAS), performance increases count toward compensation for the year earned, not the year paid.

Example: In the 2017-2018 school year, a member earns a performance increase, which is paid in the 2018-2019 school year. At the time of retirement, when TRS determines the member's Final Average Salary, the amount of the increase will be included with the member’s compensation for the 2017-2018 school year (the year earned, not the year paid).

Members should be aware of this distinction when planning for retirement and when making any decisions concerning their FAS period.

Members should also note that performance increases are not reflected in the benefit estimates and projections that may appear in their Annual Benefits Statements; those calculations are based only on contractual salary.