Cal. Code Regs. tit. 2 § 579.21
For purposes of implementing Government Code section 7522.32 and determining the final compensation amount for New Members, CalPERS will apply a cap to all pensionable compensation used in the calculation of final compensation in accordance with Government Code section 7522.10 and Regulation section 579.22. The final compensation period used to calculate the defined benefit will be the applicable measurement period set forth in Government Code section 7522.32(a). Final compensation will be the annual average of the total final compensation for the applicable measurement period calculated in accordance with Regulation section 579.22, which amount shall be determined by dividing such total final compensation for each full calendar year and portion of a calendar year calculated under Regulation section 579.22, subdivisions (a)(1) and (2), by the number of years in such applicable measurement period. For example, if the applicable measurement period is 36 months (i.e., three years), final compensation taken into account in calculating a member's defined benefit will be equal to the total sum of the final compensation for the applicable measurement period calculated for each full calendar year and portion of a calendar year under Regulation section 579.22, subdivisions (a)(1) and (2), divided by three years.
Cal. Code Regs. Tit. 2, § 579.21
Note: Authority cited: Sections 7522.02, 20120, 20121, 20122, 20123 and 20124, Government Code. Reference: Sections 7522.04, 7522.10 and 7522.32, Government Code.