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401(a) Retirement Plan

Teachers' Retirement Systems of Alabama

New Hire Retirement Comparison (Act 2012-377)

 

 

Tier 1 Employee

 

Tier 2 Employee

 

Date of Employment


 

Prior to January 1, 2013

 

On or After January 1, 2013

 

 

Member Contribution Rate

 

7.5% for Regular Employees
8.5% for FLC Employee

 

6.0% for Regular Employees
7.0% for FLC Employees


 

Employer Contribution


 

11.71%

 

11.08%

 

Retirement Eligibility

 

25 years of service at any age
10 years of service at the age of 60

 

No early retirement option
10 years of service at the age of 62 (56 for law enforcement officers)

 

Average Final Salary

 

Average of the highest three years out of the last ten years

 

Average of the highest five years out of the last ten years


 

Sick Leave Conversion

 


Yes

 


No

 

 

RSA-1

Active members

Begin saving more money for later while saving taxes now with RSA-1. Any public official or employee of the state of Alabama or any political subdivision of the state is eligible to enroll, regardless of age or participation in the RSA. The RSA-1 Program is voluntary, and can help you plan for a secure financial future. (NO FEES!)


RSA-1 is an eligible deferred compensation plan as defined by Section 457 of the Internal Revenue Code of the United States. Under this deferred plan a public employee may elect to defer receipt of a portion of his or her salary until a later determined date, usually at retirement or other termination of employment.


To set up your account, complete the following forms and submit to the H.R. Office:

RSA-1 Enrollment Application Form

Beneficiary Designation Form

Investment Option Election Form

Authorization to Defer Compensation Form


Other helpful links:

History Returns

RSA-1 Rates of Returns


Contact Information:
  The Retirement Systems of Alabama
  201 South Union Street
  Montgomery, AL 36104
  1-877-517-0020
  www.rsa-al.gov

_______________________________________________________________________________________________________________

403(b) and 457(b) Optional Retirement Plans

A 403(b) and 457(b) are voluntary tax deferred retirement plans which allows employees to set aside a portion of their salary at pre-tax dollars for retirement savings. These plans also offers expanded investment options. Some fees may apply.

​Alabama A&M University offers employees working at least 30 hours per week an opportunity to voluntarily participate in the available tax deferred retirement plans. The plans are available to all employees except, leased or contracted individuals. Employees may select a 403(b) and/or a 457(b) plan through the following vendors:

TIAA-CREF​

www.tiaa-cref.org

Variable Annuity Life Ins. Co. (VALIC)

www.valic.com​

ASPIRE​​

www.aspirefinserv.com

LSW (Life of Southwest)

www.nationallifegroup.com​​

 

​Contributions may start, stop or change at any time. Generally, employees can contribute up to the IRS standard maximum contribution amounts without penalty. Alabama A&M University do not match these contributions.


IRS Standard Maximum Contributions for 2014:

        • - Under age 50 - $17,500
        • - Age 50 or older - $23,000



For more information regarding the catch up provision to determine whether you qualify, please contact the vendors' representative:


Mr. Wilbert Hamilton, CEO

Hamilton Advisory Group

Office:  256.886.8579 or 334.233.7216

Fax: 888.465.1196 

Website:  www.hamiltonadvgroup.com

Email:  info@hamiltonadvgroup.com