Changes Impact AU Employees


During the 2011 regular session, the Alabama Legislature enacted two significant pieces of legislation that will impact Auburn University employees. First, employee contributions to Teachers Retirement will increase from 5% to 7.25% beginning October 1, 2011 and will go to 7.5% beginning October 1, 2012. The first paychecks in which these changes will be reflected are those for biweekly and semi-monthly employees dated October 14, 2011.

Second, employees retiring after December 1, 2011 who have fewer than 25 years of service and/or will be less than age 65 at the time of retirement will pay more for their health insurance through PEEHIP. Please see the Changes in the PEEHIP Law for more detailed information, or visit the RSA website at

PEEHIP has available a retiree premium calculator on their web site,, which can help you estimate your future health insurance premiums after retirement and assist you in your financial planning for retirement. The provisions of the new PEEHIP legislation were built into the calculator and can assist employees who are considering retirement in the near future with an estimate of their monthly premium if they were to retire before or after December 31, 2011. We encourage members to use the calculator rather than calling the PEEHIP office for an estimate of their premium.

If you plan to retire prior to the effective date of the new law, you should submit your retirement application to the Payroll and Benefits Department no later than Friday, October 14, 2011 to allow for processing for a December 1, 2011 retirement date.


Payroll & Employee Benefits
1550 East Glenn Avenue   ·   Auburn University · Alabama 36849 USA
      Phone 334-844-4183      Fax 334-844-1799

Auburn University | Auburn, Alabama 36849 | (334) 844-4000
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