Retirement

Information about the mandatory 401(a) Retirement Plan managed by Teachers' Retirement Systems of Alabama

Mandatory 401 (a) Retirement plan teachers' retirement systems of alabama

Retirement Comparison(Act 2021-537)

	Tier One Employee	Tier Two 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	6.2% for Regular Employees; 7.2% for FLC Employees
Employer Contribution	12.43%	11.32%
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	Yes, effective October 1, 2021

RSA-1 (457 Deferred Comp Retirement Plan)

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 Form
Beneficiary Designation Form
RSA-1 New Investment Opt-Election
Authorization to Defer Compensation Form

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

The 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. Employees may elect a 403(b) and/or a 457(b) plan through the following vendor:

Contact Information:

One America
One American Square
P.O. Box 368
Indianapolis, IN 46206-0368
1-800-261-9618
https://www.oneamerica.com/

Additional Information about One America

Fee Disclosure Notice
Qualified Default Investment Alternative (QDIA)
Qualified Default Investment Alternative (QDIA) Notice

?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 2022:
- Under age 50 - $20,500
- Age 50 and Over - $27,000

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
1525 Perimeter Pkwy. Suite 145
Huntsville, AL 35806

Office:  (256) 270-7064
Cell:     (334) 233-7216
Fax:     (888) 465-1196
Website:  www.hamiltonadvgroup.com
Email:      wh@hamiltonadvgroup.com