What is the effect of an FLSA recovery on a pension?
A. This will depend on the pension system’s rules. However, at least some of an FLSA award may be considered “back pay.” Therefore, if pensions are based on a percentage of wages earned or “average salary,” an FLSA recovery may increase the amount of pension an officer can receive. Thus, in some circumstances an FLSA award can be “the gift that keeps on giving.