Links for Retirees
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To enjoy a successful retirement, plan and educate yourself early on the retirement process!
Continue AEA membership after retiring
Become a retired AEA member to avoid loss of member benefits. Become a NEA-Retired Lifetime Member to save money and receive a special planning for retirement package entitled "Planning for the Best Years of Your Life".
A checklist for your countdown to retirement has been prepared by TRS.You must have Adobe Acrobat Reader (a free product) to view and print out this file. Use the button on the left to download Adobe Acrobat Reader.
Attend a Retirement Preparation Seminar near you
The Teacher Retirement System provides two major means of preparation for your retirement. For members of the retirement system within four years of retirement there are full day retirement preparation seminars held at locations across the state during the last half of the year. To guarantee yourself a seat, complete the registration form early. To obtain a registration form, ask your personnel/payroll officer or download the form from the Web site.
When you are within three years of retirement you may schedule individual counseling appointments with a TRS Retirement Counselor. Schedules for both the seminars and counseling appointments are posted at the RSA Web site at www.rsa.state.al.us/RetPlanning/retirement_planning.htm. To learn more about these programs, click here.
As well as attending a seminar, you may schedule an Individual Counseling Appointment. These are 20-minute appointments with a TRS counselor at locations all over Alabama. To schedule an appointment ask your payroll or personnel officer for a registration form or download the form from the Web site at www.rsa.state.al.us. You may also visit the TRS offices in Montgomery and meet with a retirement counselor, Monday – Friday, 8 a.m. – 5 p.m. with no appointment required.
Request official estimate of benefits from TRS
At least ten months prior to retirement, request an official estimate of benefits from the TRS. This will inform you not only of your retirement benefit options but whether you have the necessary service credit for retirement. A member is eligible to retire the first day of the month after reaching the age of 60 with at least ten years of creditable service or the first day of the month after attaining 25 years of creditable service. Members can only retire on the first day of any month they are eligible.
Request a Retirement Application Packet Part I from your payroll/personnel officer or the TRS or download the form from the TRS Web site www.rsa.state.al.us at least five months prior to your retirement date. The application must be received by the TRS no less than 30 days nor more than 90 days prior to the effective date of retirement.
Go over benefits and premiums with PEEHIP
Ensure you understand your health care benefits from the Public Education Employees’ Health Insurance Plan (PEEHIP) before completing your retirement application. Contact PEEHIP to receive information on your premiums and if eligible for Medicare what additional steps you need to take.
If you have an account with the RSA-1 Deferred Compensation Plan, contact RSA-1 to receive information about distribution or DROP rollover options that will pertain to you when you retire.
To contact the TRS, PEEHIP or RSA-1, call 800-214-2158 or 334-832-4140. Please listen carefully to the phone menu to select the department you wish to speak with.
DROP benefits can be a part of your finanacial plans for retirement
The Deferred Retirement Option Plan (DROP) became effective June 1, 2002. The Teachers' Retirement System provides an extensive description of the program. To get an approximate idea of retirement income under DROP and under the regular retirement scenario, use theRetirement Systems of Alabama calculator.
Public education and state employees considering retirement have a financial incentive to stay on the job. DROP allows teachers to continue to contract to teach for not fewer than three nor more than five years after they have retired. During that period of time their retirement income is placed in an escrow account while they receive their teaching salary. The contributions to the retirement system from their teaching salaries are also added to the escrow account.
The teacher retains (and accrues) sick leave during this contract period. At the end of the contract period the teacher's retirement benefit is recalculated to include any sick leave remaining from that which had been earned upon retirement (at the beginning of the contract). The sick leave days accrued after retirement may be used for sick leave, but may not be used to increase the retirement benefit.
At the end of the contract, the teacher will receive the amount of retirement funds in the escrow account. These funds should be rolled into a retirement account such as AEA ValueBuilder or RSA-1 to defer taxes.
Getting a Jump Start on Retirement
Everyone has experienced the effects of procrastination at some time or another in their lives. But do you know how costly procrastination could be when it comes to saving for your retirement?
If you're interested in learning more about the advantages of starting your retirement investment program early, contact your NEA Valuebuilder Financial Counselor. He or she will be happy to help you sidestep the pitfalls of procrastination.
To speak with an NEA Valuebuilder Financial Counselor, call toll-free, 1-800-NEA-VALU, or visit NEA Member Benefits online at www.neamb.com.