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As a condition of employment at the University, all eligible employees in at least a 50 percent time capacity are required to join the Retirement Systems of Alabama (RSA). This program provides specific benefits for eligible members in accordance with the plan or option the member designates at the time of application for retirement. All contributions to the retirement system are tax deferred for federal income tax purposes until retirement or withdrawal from the plan.
All non-student employees, who are employed for a year in at least a 50 percent work capacity on a continuing basis must participate in the Teachers' Retirement System (TRS). 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 (ERS).
Participants in the TRS and ERS are classified as either Tier 1 or Tier 2 members.
The normal benefit at retirement is based upon a formula where a Retirement Factor is applied to an average of the final years of earnable compensation.
A deduction is made from all employees' wages, except Civil Service employees, for Social Security. The noted Civil Service personnel are only eligible for Medicare and have a prorated deduction from wages to cover the Medicare portion.
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:
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.
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.
"Overview: Teachers' Retirement System and the RSA-1 Deferred Compensation Plan"Presented by Kit Gallup, Retirement Systems of Alabama
"How the Auburn University Retirement Plans Work"Presented by Lee Busby, Johnson+Sterling
"PEEHIP Insurance for Auburn University Retirees"Presented by Kit Gallup, Retirement Systems of Alabama