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Phone: (334) 844-4145
Fax: (334) 844-1799
benefit@auburn.edu
Our Benefits and Payroll Team
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A summary of certain benefits available at Auburn, including health, life, and disability insurances, Flexible Spending Accounts, and retirement options.
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This printable document includes information about eligible dependents for University health benefits.
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 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.
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.
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.
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.
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.
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.
Additional Information
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.
