TRS Tier II Employees to Contribute More to Retirement Plan Effective Oct. 1
- August 4th, 2021
- in Uncategorized
The State of Alabama enacted new legislation that will increase the amount of money Tier II members are required to contribute to their Teachers’ Retirement System (TRS) retirement plan. Tier II members are those who did not participate in TRS or Employees’ Retirement System (ERS) prior to Jan. 1, 2013.
The University of Alabama is a participating employer with TRS, therefore eligible UA employees are required to make contributions to a mandatory 401(a) retirement plan each pay period. Currently, Tier II members contribute 6.0% of salary each pay period (Certified Firefighters or Law Enforcement Officers contribute 7.0%). Effective Oct. 1, 2021, Tier II member contributions will increase 0.2% to 6.2% of salary (7.2% of salary for Tier II Certified Firefighters or Law Enforcement Officers). At retirement, Tier II members will be permitted to convert sick leave to retirement service credit.