Alabama Retirement System: Everything You Need To Know In 2023
This page features all you need to know about the Alabama Retirement System. If you are planning on working in the United States, you will find the information here useful. Read on!
Alabama Retirement System is a pension fund administrator for employees of the state of Alabama. It is headquartered in Montgomery which is the state capital of Alabama. The Chief Executive Officer of the Pension Fund is David G. Bronner.
The purpose of the Alabama Retirement System is to serve the interests of its members by providing excellent benefits at the lowest expense to the state of Alabama and all Alabama taxpayers.
The system is the safekeepers of the pension funds for thousands of Alabamians and they provide reliable pension for retired employees. The main goal of the system is to seek and secure the best investments and services for its members.
Types Of Retirement Systems In Alabama
The State of Alabama has their main retirement systems. All the retirement plans are defined contribution plan, this means that participants contribute a certain percentage of each paycheck to the account. The fund grows tax deferred and once the employee retire, he/she will receive a set benefit each month.
The State Of Alabama Retirement plans qualify as a 401(a) plan. Each plan is available to different participants, depending on your profession and type of employment. Many full-time, regular, public employees are qualified for the Employees’ Retirement System (ERS).
If you are qualified, you must take part in the system. The other two systems which are the Teachers Retirement System (TRS) and the Judicial Retirement Fund (JRF) are made specifically for teachers and judicial employees.
Below is a table that shows qualified employees for each plan:
Alabama Retirement System
|Plan Status||Qualified Employees|
|Employees’ Retirement System||The qualified candidate for this plan are most public employees, including law enforcement officials, and some elected officials|
|Teachers’ Retirement System (TRS)||The qualified candidate for this plan are Public teachers Only.|
|Judicial Retirement Fund(JRF)||The qualified candidates for this plan are Justices, judges, circuit clerks and district attorneys|
Alabama Retirement System Overview
Employees’ Retirement System (ERS): The eligibility for the ERS is that an employee must work on a non-temporary basis for at least 20 hours per week. In addition, he/she must earn at least the minimum wage.
Temporary employees who have a specific termination date for their job are not eligible. The only exception to this is if you’ve been working as a temporal employee for more than a year.
You have to opt into the Employees’ Retirement System (ERS) at the beginning of your second year of temporary work.
Teachers’ Retirement System (TRS): This system is similar to the ERS in most ways. For example, the system is equipped with two tiers for members. And the retirement benefit formula is the same with ERS. The major difference is that the TRS is made especially for public school teachers.
Judicial Retirement Fund (JRF): This plan is eligible to all justices, judges, circuit clerks and district attorneys and they must become a member of the fund if they were elected or assumed office on or after 8th of November, 2016. Participants contributes 8.5% of their compensation to the Fund.
The contributions you make to the Alabama Retirement Systems are tax deferred. Meaning you won’t pay taxes on the money until you receive them as distributions in retirement.
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