(1) The earned compensation for each year used in calculating a member's average final compensation may not exceed either the member's actual earned compensation or earnings adjusted by this rule for the preceding year, by more than 10% except for increases that:

(a) result from collective bargaining agreements;

(b) have been granted by the employer to all other similarly situated employees. � The employer must certify the similarly situated group of employees, the increase received by each employee and the methodology for determining the increases;

(c) result from compensation received for summer employment, provided summer compensation does not exceed the lessor of:

(i) one-ninth of the academic year contract for each full month or prorated for each portion of a month employed during the summer; or

(ii) 110% of the summer compensation the member was eligible to earn each month during the preceding summer;

(d) have resulted from change of employer; or

(e) have resulted from re-employment for a period of not less than one year following a break in service.

(2) The member must provide adequate documentation to permit the board to make an informed decision concerning exceptions to the 10% limitation. � Adequate documentation includes but is not limited to the following:

(a) employment contracts;

(b) official minutes of board meetings.

(3) The assignment of additional duties of a one time or temporary nature shall not be exempt from the 10% limitation.

(4) The 10% cap shall be calculated as per the following example and applied consistently to all members: �

�

�	FY 1996		FY 1997	FY 1998	FY 1999
BASE CONTRACT	$64,750.00		� $70,230.00	� $90,000.00	�$90,000.00
10% CAP	NA		NA	� 77,253.00	�� 84,978.00
� EXCESS BASE EARNINGS	NA		NA	� �� �12,747.00	�� 5,022.00
� SUMMER COMPENSATION (3 months)	� 21,583.00		���������������������� 23,700.00	� ����30,000.00	� 20,000.00
SUMMER 10% CAP	NA		� 23,410.00	� � � 25,751.00	NA
� EXCESS SUMMER EARNINGS	NA		��� 290.00	�� �� 4,249.00	NA
�	�		�	�	�
TOTAL EXCESS			$22,308.00	�	�
�		�	�	�	�
AVERAGE FINAL COMPENSATION		�	��������������������� $93,640.00	$103,004.00	$104,978.00

�

Average final compensation is equal to total compensation less excess earnings.