All eligible employees are required by state law to participate in the Teacher’s Retirement System (TRS). This defined benefit program provides retired employees with a specific benefit payable monthly for the lifetime of the member. In addition to the employee contribution, the University of Alabama System (UA System) contributes a percentage which is determined by the Alabama Legislature. The UA System also offers supplemental 403(b) and 457(b) plans.
401(a) Teacher’s Retirement Plan
All eligible employees are required by state law to participate in TRS. This defined benefit program provides retired employees with a specific benefit payable monthly for the lifetime of the member. In addition to the employee contribution, the UA System contributes a percentage which is determined by the Alabama Legislature.
- Tier 1 Employees (those hired prior to January 1, 2013), contribute a mandatory 7.50% of their gross annual salary to TRS.
- Tier 2 Employees (those hired on or after January 1, 2013), contribute a mandatory 6.20% of their gross annual salary to TRS.
Further information on retirement benefits can be found in the TRS Handbook, links to these are listed below.
Upon service retirement, employees are also eligible to join the state’s Public Education Employee Health Insurance Plan (PEEHIP). Rates for this plan vary based on years of TRS service.
Individuals resigning from employment before vesting in the program, or before qualifying to receive benefits, may request a refund of their contributions and applicable interest.
For more information, select from the links below:
403(b) and 457(b) Deferred Compensation Plans
403(b) Deferred Compensation Plans
The UA System offers a 403(b) supplemental retirement plan that allows eligible employees a great way to accumulate wealth for retirement. The plan, administered by TIAA, offers convenient payroll deduction, pre-tax contributions, tax-deferred growth, and a wide variety of investment options including Roth options. The UA System makes a matching contribution for all regular Full-Time Exempt staff on employee contributions up to 5% of gross monthly pay. Any contributions above 5% are not matched by the UA System.
TIAA
TIAA offers a one-on-one counseling session with one of their advisors. Contact our HR Department to be directed to our representative.
457(b) Deferred Compensation Plans
The UA System provides a choice of 457(b) plans that allow eligible employees to defer receipt of a portion of their salary until some later date, usually at retirement or termination of employment. Contributions are made on a pretax basis and accumulate tax-free until withdrawal. Contributions to 457(b) plans may be made instead of, or in addition to, any 403(b) contributions. 457(b) Plans are not matched by the UA System.
Eligible employees may participate in both 403(b) and 457(b) plans in the same year, contributing up to the maximum amounts allowed by federal law to each plan.
You can enroll or manage your plan through TIAA.