Teachers' Retirement System of Alabama (TRS)
The TRS is a defined benefit plan qualified under Section 401(a) of the Internal Revenue Code. As explained in the TRS Member Handbook, the plan provides disability and service retirement benefits to members and survivor benefits to qualified beneficiaries. A defined benefit plan provides the member with a specific benefit at retirement by calculating his/her retirement benefit based on a formula, which is listed on page 18 of the TRS member handbook. Benefits are payable monthly for the lifetime of the member, possibly continuing for the lifetime of his/her beneficiary.
Participation in the TRS is mandatory if a person is employed in a position eligible for coverage in a non-temporary capacity on at least on a one-half time basis earning at least the federal minimum wage. Once enrolled, the member must continue participation until employment is terminated. The member’s contribution rate is 5% of his or her gross salary, and the University’s current match is 12.51% of the member’s gross salary.
A member is eligible to receive retirement benefits under either of the following conditions:
- He/she has at least 10 years of service credit and has attained the age of 60
- After accumulating 25 years of service credit at any age
- He/she has at least 10 years of service credit and become permanently disabled
Enrollment forms are completed during the new hire orientation meeting. The TRS website, located at http://www.rsa-al.gov contains more details regarding the plan.
