Retirement Plans Human Resources

Retirement Plans

Contact AU Benefits and Payroll

Phone: (334) 844-4145

Fax: (334) 844-1799

benefit@auburn.edu

HR Forms and Documents 

Benefits at a Glance 

A summary of certain benefits available at Auburn, including health, life, and disability insurances, Flexible Spending Accounts, and retirement options.

Dependent Eligibility 

This printable document includes information about eligible dependents for University health benefits.

Important Notices 

The Auburn University health, dental, vision, and Flexible Spending Account (FSA) plans are regulated by numerous federal and state laws. Many of these laws require that all eligible employees be provided with annual notices describing certain rights of the participants in the plans, or certain features contained within the benefits the plans provide.  

TRS Info 

TRS info is a quick way to inform Teachers' Retirement System members of information relating to their TRS retirement benefits along with issues affecting the Retirement Systems of Alabama.  

Auburn University offers multiple retirement plans to eligible employees.  Read more about the plans and systems which are available.

Mandatory Retirement -- Retirement Systems of Alabama

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.

Teachers' Retirement System of Alabama

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.

Employees' Retirement System of Alabama

All Civil Service employees employed by the Alabama Cooperative Extension System must participate in the Employees' Retirement System (ERS).

Contribution Rates

Participants in the TRS and ERS are classified as either Tier 1 or Tier 2 members. Participants who become members prior to January 1, 2013, are Tier 1 members. Participants who become members on or after January 1, 2013, are Tier 2 members.

Tier Payroll Deduction
Tier 1 7.5 percent of earnable compensation
Tier 2 6.0 percent of earnable compensation

Earnable Compensation

  • Earnable Compensation is the basis for determining both your contribution and your benefit at retirement. RSA separates earnable compensation into Base pay and Overtime pay.  

  • With the help of RSA, the University has determined that base pay includes Regular Pay, Lead Pay, Shift Differential, Out of Class Pay, Professorships and any Salary Supplemental.

  • Overtime pay includes Overtime, Overload, additional compensation not related to your current position (also known as "Z" jobs) and contracted Bonuses.

  • Awards, Scholarly Incentive Pay, and Bonuses which are not contracted are not included in earnable income.

  • Earnable compensation is accumulated for the entire retirement plan year which is from July 1 to June 30. All of your regular pay is included as earnable compensation, but overtime pay is limited. For Tier 1 members, only overtime pay which does not exceed 20 percent of your base pay is included. For Tier 2 members, only overtime pay which does not exceed 25 percent of your base pay is included. For the current plan year, earnable compensation is limited by federal regulations to $265,000. This dollar limit changes each year with cost-of-living adjustments issued by the IRS in October.

Normal Retirement Conditions

  • Tier 1 members are eligible for retirement benefits at age 60 with at least 10 years of service. If you have 25 years of service, you can retire at any age and apply for full retirement benefits from RSA.

  • Tier 2 members are eligible for retirement benefits at age 62 with at least 10 years of service. There is no early retirement option.

Retirement Factors

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.
  • For Tier 1, a retirement factor of 2.0125 percent for each year of service is applied to the average of the 3 highest years of earnable compensation during the last 10 years of employment. For example, 20 years of service would generate a pension equal to 40.25 percent of the highest average pay.

  • For Tier 2, the retirement factor is 1.65 percent and the average used is the highest 5 years during the last 10. There is also a maximum benefit of 80 percent of the highest average. For example, 20 years of service under this formula would generate a pension equal to 33 percent of the highest average pay.

Voluntary Retirement -- 403(b) and 457(b)

In addition to the mandatory retirement plans to which you contribute, you may also choose to participate in the voluntary retirement plans offered by Auburn University. There are 2 plan options from which to choose: the 403(b) Tax Deferred Annuity Plan or the 457(b) Deferred Compensation Plan. Visit the Side by Side Comparison of 403(b) Tax Deferred Annuity Plan and 457(b) Deferred Compensation Plan along with the Summary of Plan Services and Cost to learn more about the two plan options. 

An eligible employee may enroll in the voluntary retirement plans at any time during the year. Enrolling requires completion of a Salary Deferral Agreement as well as new account forms with the provider of your choice. An on-line calculator is available to assist you with determining your contribution percentages and completing the Salary Deferral Agreement form. To access the on-line calculator, visit How To Complete New Salary Deferral Agreements, or access blank forms for 403(b) and 457(b) here. Salary Deferral Agreements and new account forms are also available at Auburn University Human Resources located at 1550 East Glenn Avenue. For employees at AUM, forms can be obtained at the AUM Human Resources Office located at 705 Library Tower.

Last updated: 09/04/2018