All non-student employees, who are employed for a year in at least a 50% work capacity on a continuing basis must be participants in the Teachers' Retirement System. Each member will have a payroll deduction equaling 7.50% of salary. Those employees appointed on a temporary basis for no longer than one year may be exempt for that period.

All Civil Service employees employed by the Alabama Cooperative Extension System must participate in the Employees' Retirement System. Each member will have a payroll deduction equaling 7.50% of one-half of gross salary from his or her monthly compensation.

A retired worker receives monthly Social Security retirement payments based on the worker's Social Security earnings record. In addition, a spouse and/or eligible children can receive benefits of one-half of the retired worker's benefits. The law allows for retirement as early as age 62.

The Federal Social Security System makes available a broad program of health insurance for people age 65 and older. (In certain circumstances this insurance is extended to individuals under age 65.) The program popularly known as "Medicare" provides two kinds of health insurance:

1. Hospital Insurance (Medicare Part A) provides a basic coverage designed to help pay hospital bills. It covers Hospitalization, post-hospital extended care, post-hospital home health care, outpatient hospital diagnostic services, drugs, and health supplies, and most other items ordinarily furnished by a hospital or an extended care facility.

2. Supplemental Medical Insurance (Medicare Part B) is a voluntary plan designed to help pay for doctors' services and for a number of other medical items and services not covered under the hospital insurance program. These items and services include physicians' and surgeons' services, home health visits, and other medical and health services, such as diagnostic tests, x-ray or radium treatments, surgical dressings, splints, casts, certain ambulance services, and rental of medical equipment. Special enrollment in this plan is necessary and should be completed three months before reaching age 65.