Retirement

You must apply, as benefits will not start until you file an application. To file an application, you can apply online, call the Social Security Administration, or visit a local Social Security office. Additional information is available at SSA.gov to assist you.

You can start receiving benefits as early as age 62, but there is no “best age” for everyone – ultimately it is your choice. Review information about starting your retirement benefits early subject to an age reduction penalty. You may also want to consider other important things when planning for retirement.

Federal law mandates all benefit payments, including Social Security, must be made electronically. Additional information about direct deposit is available for review at SSA.gov.

Yes. You will be required to provide specific information about yourself and documents. A detailed list of information and documents is available at SSA.gov for your reference.

You will continue to pay Social Security and Medicare taxes pay regardless of your age. You may be subject to a yearly retirement earnings limit depending upon your age. Review SSA.gov FAQs for additional information about earnings effect on retirement benefits.

After you are automatically enrolled as a TRS member, you will receive a beneficiary designation form in the mail. New members designate a primary and contingent beneficiary on this Designation of Beneficiary Prior to Retirement form. If the member wishes to change the beneficiary designation(s), the appropriate portions of a Designation of Beneficiary Prior to Retirement form must be completed with the member’s signature acknowledged by a notary public. Notary Service can be obtained at the Benefits Office located in the HR Administration Building (1670 Ruby Tyler Parkway) or you may obtain a Notary elsewhere. Additional information is available on p. 7 of the TRS Member Handbook.

The Alabama Teachers’ Retirement System (TRS), is a 401(a) defined benefit plan that provides disability and service retirement benefits to members and survivor benefits to qualified beneficiaries. Member participation is mandatory for an employee working in a regular, non-temporary capacity on at least one-half time basis (0.5 FTE, or full time equivalency). Enrollment is automatic upon hire. Once an employee begins participation in TRS with any qualified employer, the employee is required to continue contributing to TRS on future employment wages even if the position is temporary or seasonal/irregular. Additional information about membership and participation is available on p. 6 of the TRS Member Handbook.

Yes. Review the Limitation on Annual Compensation statement from TRS.

Review p. 6 of the TRS Member Handbook for information about membership tiers.

As a participating agency, UA is required by law to contribute a percentage per participant per month. Review employer cost rates by membership tier.

Vesting means the member has earned enough service credit to be eligible for a lifetime retirement benefit other than a refund of contributions. Members have a vested status in the TRS after accumulating 10 years of creditable service. Members cannot convert unused sick leave to retirement service credit in order to meet the minimum 10 years of service required for vesting. Review the TRS Member Handbook for additional information.

Review the TRS Member Handbook section on Termination of Service (p. 10 – 11) for additional information about options when a member terminates employment prior to retirement eligibility. Contact the Benefits Office for assistance at (205) 348-7732.

Review the TRS Member Handbook section on Retirement Benefits (p. 17 – 19) for additional information about service retirement and/or disability retirement options.

No, there are no such provisions for loans or hardship withdrawals from this plan.

Review the TRS Member Handbook section on Death of a Member Prior to Retirement (p. 15 – 16) for additional information about available options when a member dies prior to retirement. It is critical for employees to ensure beneficiary information on file with TRS remains accurate. Beneficiaries may contact the Benefits Office for assistance at (205) 348-7732.

No, TRS stopped accepting DROP applications March 24, 2011 following the passage of Act 2011-27.

Yes, a comprehensive plan provided by the Public Education Employees’ Health Insurance Plan (PEEHIP) is available to all retirees with coverage effective the date of retirement. Review the TRS Member Handbook section on PEEHIP (p. 35) for additional information. You may also seek health plan options that are available through the healthcare marketplace (www.healthcare.gov). Employees planning for retirement should contact the Benefits Office for assistance at (205) 348-7732.

Members may convert a maximum of one day of sick leave into retirement for every month of TRS service credit (e.g., 12 years of creditable service in TRS = 144 months of service credit and eligible to convert 144 sick leave days). NOTE: You may accumulate more days than will be eligible to convert based on TRS’ sick leave conversion provision. Review the TRS Member Handbook section on Sick Leave Conversion (p. 20) for a chart with additional information.

You will be required to complete the Service Retirement Application Packet Part I to initiate the retirement process with TRS. The completed application must be received by TRS no less than 30 days or more than 90 days prior to the effective date of retirement. Retirement Application Deadlines are listed on the TRS website. The application should be submitted through the Benefits Office because it requires employment certification and notarization. If retiring due to disability, you and your doctor will need the Disability Retirement Application Packet Part I and Report of Disability Packet. Please contact the Benefits Office at 205-348-7732 to schedule an appointment with a Benefits Specialist who will guide you through the process, provide the forms and answer your questions.

Please review the TRS Membership Handbook for additional information.