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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






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








​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.

Any public official or employee of the state of Alabama is eligible to participate in the RSA-1 Deferred Compensation Plan, regardless of age or participation in the Retirement System. Participation in RSA-1 is strictly voluntary.


Contact Information:
  The Retirement Systems of Alabama
  201 South Union Street
  Montgomery, AL 36104


Tax Deferred Optional Retirement 403(b) and 457(b) Optional Retirement Plans, Effective January 1, 2013

​Alabama A&M University offers employees working at least 30 hours per week an opportunity to voluntarily participate in the available Tax Deferred Annuity Plans. The plans are available to all employees except leased or contracted individuals. Interested employees may contact the vendors identified below for additional information.



Variable Annuity Life Ins. Co. (VALIC)​


LSW (Life of Southwest)​​


​The Tax Deferred Annuity plan allows employees to set aside a portion of their salary pre-tax dollars for retirement savings.


The 403(b) and 457(b) plans are voluntary savings plans. Contributions may be 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 does not match these contributions.


IRS Standard Maximum Contributions for 2013:

  • - Under age 50 - $17,500
  • - Age 50 or older - $22,000


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

Mr. Wilbert Hamilton, CEO

Hamilton Advisory Group

Office:  256.886.8579

Fax: 888.465.1196