Section 38.1127. Final average compensation.

(1) Compensation means the remuneration received by a member, as defined in the  act, and  includes items  of  an   economic  value   as specifically fixed by the retirement board.  Only  if  the   kind  of remuneration  or   item  of  economic value   received  by   a    member    is specifically authorized  by  either  the  retirement

statute   or   by   the retirement board shall it be included  in   computing    the    member's final average compensation.

(2) All payments  to  a  member,  or  made   on  the  member's  behalf, recognizable as compensation which were made under the noncontributory plan, but which were not reported to the retirement system at the time the payment was made, shall be verified from official reporting unit records and certified by the president and secretary of the board of  control.  The respective contribution shall be the responsibility of the reporting unit and is subject to penalties and interest as determined by the retirement board and statute.

History: 1985 AACS.