Malcolm Rivera
The Teachers' Retirement System of Alabama (TRS) has been providing benefits to qualified members of state-supported educational institutions since 1939. The system offers retirement allowances and pension funds to public school teachers and other related educational employees. The benefits provided include health, dental, vision, and prescription insurance, as well as life and long-term disability insurance. Monthly Social Security retirement payments are also available to retired workers based on their earnings record, with eligible spouses and children receiving half of the retired worker's benefits. TRS members are categorized as Tier 1 or Tier 2, with Tier 1 members receiving a higher contribution deduction and a higher retirement factor than Tier 2 members.
| Characteristics | Values |
|---|---|
| Purpose | To provide retirement allowances to public school teachers of the State of Alabama and other related educational employees |
| Administered by | The Retirement System of Alabama |
| Who is eligible | Qualified members employed by state-supported educational institutions, including public employees of K-12 school systems, two-year Community Colleges, four-year higher education institutions, and state education agencies |
| Retirement age | 60 with at least 10 years of service; with 25 years of service, they can retire at any age |
| Retirement factor | 2.0125% for each year of service |
| Tier 1 employees | Members prior to 01/01/2013; 7.5% of an employee's salary is deducted from each payroll check |
| Tier 2 employees | Members on or after 01/01/2013; 6.2% of an employee's salary is deducted from each payroll check |
| Benefits | Disability and service retirement benefits to members and survivor benefits to qualified beneficiaries |
| Application deadline | 30 to 90 days prior to the retirement date |
| Contact | Email: member.services@rsa-al.gov, trsinfo@rsa-al.gov |
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What You'll Learn
Retirement age and years of service requirements
The Retirement Systems of Alabama (RSA) provides pensions and other benefits to most public employees in Alabama. The system includes the Teachers' Retirement System (TRS) and the Employees' Retirement System. The Teachers' Retirement System has been providing benefits to qualified members employed by state-supported educational institutions since 1939.
The TRS categorizes eligible employees as Tier 1 (members prior to 01/01/2013) or Tier 2 (members on or after 01/01/2013). Tier 1 employees contribute 7.5% of their salary, while Tier 2 employees contribute 6.2%. After 10 years, employees are vested in the retirement account.
Tier 1 employees are eligible for retirement benefits at age 60 with at least 10 years of service. With 25 years of service, they can retire at any age and receive full retirement benefits. A retirement factor of 2.0125% for each year of service is applied to the average of the three highest years of earnable compensation during the last 10 years of employment.
Tier 2 employees are eligible for retirement benefits at age 62 with a minimum of 10 years of service. A retirement factor of 1.65% for each year of service is applied to the average of the five highest years of earnable compensation during the last decade of employment. Tier 2 members can also opt for early retirement after 30 years of service, with a 2% reduction for each year from age 62.
The deadline to file an Application for Retirement is 30 to 90 days before the retirement date, as per the Code of Alabama, 1975.
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Types of insurance
The Teachers' Retirement System (TRS) in Alabama has been providing benefits to qualified members employed by state-supported educational institutions since 1939. These include public employees of K-12 school systems, two-year community colleges, four-year higher education institutions, and state education agencies.
TRS offers the following types of insurance:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Prescription Coverage
- Life and Long-Term Disability Insurance
- TIAA Supplemental Retirement Plan
The TRS is a defined benefit plan qualified under Section 401(a) of the Internal Revenue Code. Eligible employees are categorized as Tier 1 (members prior to 01/01/2013) or Tier 2 (members on or after 01/01/2013). The plan provides disability and service retirement benefits to members and survivor benefits to qualified beneficiaries. Benefits are payable monthly for the lifetime of the member and may continue for the lifetime of their beneficiary.
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Pension plans
The Teachers' Retirement System of Alabama (TRS) is a pension plan that has provided benefits to qualified members employed by state-supported educational institutions since 1939. This includes public employees of K-12 school systems, two-year community colleges, four-year higher education institutions, and state education agencies.
The TRS is a defined benefit plan, with benefits payable monthly for the lifetime of the member and possibly continuing for the lifetime of their beneficiary. There is no cash value balance associated with this plan. Participation in the TRS is mandatory for eligible employees, who are categorized as either Tier 1 (members prior to 01/01/2013) or Tier 2 (members on or after 01/01/2013). Tier 1 employees contribute 7.5% of their salary, while Tier 2 employees contribute 6.2%.
Tier 1 members can retire with full benefits at age 60 with at least 10 years of service. With 25 years of service, they can retire at any age. A retirement factor of 2.0125% for each year of service is applied to the average of the three highest years of earnable compensation during the last 10 years of employment. For example, 20 years of service would generate a pension equal to 40.25% of the highest average pay, with a maximum benefit of 80%.
Tier 2 members are eligible for retirement benefits at age 62 with at least 10 years of service. A retirement factor of 1.65% for each year of service is applied to the average of the five highest years of earnable compensation during the last 10 years of employment. Tier 2 members can also take advantage of an early retirement option after accumulating 30 years of service credit, with a 2% reduction for each year from age 62.
The Retirement Systems of Alabama (RSA) publishes monthly newsletters with information about the retirement system, legislative updates, and special deals for members. They also offer a voluntary supplemental retirement plan, the RSA-1 Deferred Compensation Plan, which allows members to save and invest extra money for retirement on a tax-deferred basis.
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Retirement benefits for spouses and children
The Teachers' Retirement System (TRS) of Alabama has been providing benefits to qualified members employed by state-supported educational institutions since 1939. This includes public employees of K-12 school systems, two-year community colleges, four-year higher education institutions, and state education agencies.
Eligible employees are categorized by the TRS as Tier 1 (members prior to 01/01/2013) or Tier 2 (members on or after 01/01/2013). The plan offers disability and service retirement benefits to members and survivor benefits to qualified beneficiaries.
The TRS is a defined benefit plan, which means that a member's retirement benefit is calculated based on a specific formula listed in the TRS Member Handbook or using the Retirement Systems of Alabama (RSA) Retirement Benefit Estimate Calculator. Benefits are payable monthly for the lifetime of the member and may continue for the lifetime of their beneficiary. This is a pension plan, which means there is no cash value balance associated with it.
If you wish to change your beneficiary prior to retirement, you can fill out the Change of Beneficiary Form and mail it to the address provided. It is important to note that the form must be notarized, and a copy should be retained in your personnel file. For retirees, direct contact with the RSA is required to make changes to the beneficiary.
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Legislative updates
The Teachers' Retirement System (TRS) of Alabama has been providing benefits to qualified members employed by state-supported educational institutions since 1939. These include public employees of K-12 school systems, two-year community colleges, four-year higher education institutions, and state education agencies.
The Retirement Systems of Alabama (RSA) publishes monthly newsletters that include legislative updates. These newsletters are mailed to all members of the TRS, and archived copies are available on the RSA website.
- Tier I and Tier II Plan Members: The 2024 Code of Alabama outlines the retirement benefits for Tier I and Tier II plan members. Tier I members who have attained the age of 60 and completed at least 25 years of creditable service can retire with full benefits. Tier II members must reach the age of 62, or 56 for correctional officers, firefighters, or law enforcement officers, and complete at least 30 years of creditable service to be eligible for retirement.
- Retirement Age Increase for Tier II Members: According to the 2024 Code of Alabama, any future act to increase the retirement age for Tier II plan members above 62 years requires a two-thirds vote of the elected membership of each house of the Legislature.
- Divorce and Beneficiary Designation: In the same code, it is mentioned that if a retired Tier II member who is receiving monthly benefits under Options 2, 3, or 4 divorces their designated beneficiary, they can designate a replacement beneficiary. This change will take effect two years after the date of designation, and there will be an actuarial adjustment in the monthly benefit allowance to cover any associated costs.
- Retirement Allowance Payment Increases: Any increase in retirement allowance payments under subsection (j) will only accrue to the retired member. Designated beneficiaries will not receive any increase in payments after the death of the retired member.
- Opposition to Pharmacy Benefit Manager (PBM) Legislation: The RSA has released a memo outlining its opposition to the proposed PBM legislation and how it could affect PEEHIP members.
- Alabama Lawmakers Discuss COLA Increases for Retired Teachers: In February 2025, Alabama lawmakers discussed the cost behind COLA increases for retired teachers.
- Early Retirement Option for Tier 2 Members: Tier 2 members now have an early retirement option after accumulating 30 years of service credit, with a 2% reduction for each year before the age of 62.
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Frequently asked questions
The Teachers' Retirement System of Alabama is a pension system that provides retirement allowances and benefits to public school teachers and other educational employees in the state.
Eligible employees are categorized as either Tier 1 (members prior to 01/01/2013) or Tier 2 (members on or after 01/01/2013). Full-time employees in eligible positions are required to participate in the TRS.
TRS provides disability and service retirement benefits to members and survivor benefits to qualified beneficiaries. Benefits are payable monthly for the lifetime of the member and possibly their beneficiary.
Tier 1 members can retire at age 60 with at least 10 years of service. Tier 2 members can retire at age 62 with at least 10 years of service. With 25 years of service, members of either tier can retire at any age and apply for full retirement benefits.
Benefits are calculated based on a retirement factor applied to the average of the highest years of earnable compensation during the last 10 years of employment. There is also a maximum benefit of 80% of the highest average pay.
