ARM 2.44.518. LIMIT ON EARNED COMPENSATION

(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.