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(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 result from:

(a) collective bargaining agreements;

(b) a change or adjustments in a salary schedule covering a certifiable group of employees not covered under a collective bargaining agreement. The employer must certify the group of employees affected by the change or adjustment in the salary schedule, the increase received by each employee, and the methodology for determining the increases;

c) compensation received for summer employment, provided summer compensation does not exceed one-ninth of the academic year contract for each full month or prorated for each portion of a month employed during the summer;

(d) change of employer;

(e) re-employment for a period of not less than one year following a break in service;

(f) a promotion to an existing permanent position with the same employer. The assignment of temporary duties or a new job added to existing duties, an acting or interim appointment, a change in classification or title, or an increase in compensation received would not qualify as a promotion; or

(g) the combination of salary from multiple employers that when reviewed separately does not exceed 10%.

(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;

(c) collective bargaining agreements; or

(d) salary schedules.

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

(4) Average final compensation is equal to total compensation less excess earnings not qualifying for an exemption.

History: 19-4-201, 19-20-201, MCA; IMP, 19-4-101, 19-20-101, 19-20-715, MCA; NEW, 1989 MAR p. 1276, Eff. 9/30/89; AMD, 1995 MAR p. 349, Eff. 3/17/95; AMD, 1995 MAR p. 2122, Eff. 10/13/95; AMD, 1999 MAR p. 2243, Eff. 10/8/99; AMD, 2007 MAR p. 2121, Eff. 12/21/07.

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