Tier 1: full benefit at
- age 60 with at least 10 years of service
- 25 years of service at any age
There's no reduced early option for Tier 1, because 25 years at any age is already a full benefit. Handbook p. 17 (no reduced early retirement for Tier 1; 25 years at any age is unreduced)
Tier 2: full benefit at
- age 62 with at least 10 years of service
- certified firefighters, law enforcement officers and correctional officers: age 56 with at least 10 years of that service
Tier 2: 30 years, before 62
30 years of service at any age, reduced 2% for each year between age 62 and the age at retirement. This was added by Act 2022-222. Ala. Code § 16-25-14(a)(4), (d) (as amended by Act 2022-222); Handbook p. 17, Tier 2 Members ('After accumulating 30 years of service credit with a 2% reduction for each year from age 62')
| Age at retirement (30+ years) | Cut | On $2,063 a month |
|---|---|---|
| 52 | 20% | $1,650 |
| 54 | 16% | $1,733 |
| 55 | 14% | $1,774 |
| 56 | 12% | $1,815 |
| 57 | 10% | $1,856 |
| 58 | 8% | $1,898 |
| 59 | 6% | $1,939 |
| 60 | 4% | $1,980 |
| 61 | 2% | $2,021 |
| 62 | 0% | $2,063 |
Our illustration: $50,000 average final salary × 30 years × 1.65% ÷ 12 = $2,062.50 before the cut. At 57: $1,856.25 a month.
TRS of Alabama cuts a Tier 2 benefit 2% for each year you retire before 62 with 30 years. The sources don't say how part of a year counts.
We prorate by month.
Ala. Code § 16-25-14(d); Handbook p. 17The 2019 Tier 2 handbook says a Tier 2 member must be 62. That was before Act 2022-222; the July 2026 handbook and the law allow the 30-year option. Tier 2 Handbook (2019) p. 16; Ala. Code § 16-25-14(a)(4), (d) (as amended by Act 2022-222); Handbook p. 17, Tier 2 Members ('After accumulating 30 years of service credit with a 2% reduction for each year from age 62')
Which date you can retire
A member may retire the first day of the month following attainment of the required age (or of the required service). Members may only retire on the first day of a month. Handbook p. 17, Service Retirement
You can retire on the 1st of the month after you reach the age. If your birthday is on the 1st, the sources don't say whether that same day counts.
We follow the words literally: born March 1, the earliest date is April 1.
Handbook p. 17From the sources
- Tier 1: you can retire at age 60 with at least 10 years of service, or with 25 years at any age. Neither is reduced.Handbook p. 17; Ala. Code § 16-25-14(a)(1), (a)(4)
- Tier 2: you can retire with a full benefit at age 62 with at least 10 years of service (age 56 for certified firefighters, law enforcement and correctional officers with 10 years of that service).Handbook p. 17; Ala. Code § 16-25-14(a)(1)
- Retirement always starts on the first of a month, the month after you reach the required age or service. Your application must reach TRS of Alabama 30 to 90 days before that date.Handbook pp. 17-18
- Tier 1 has no reduced early retirement: 25 years of service lets you retire at any age with no cut.Handbook p. 17
- Tier 2 members with 30 years of service can retire before 62, with the benefit cut 2% for each year under 62. Retiring at 57 with 30 years means a 10% cut. This option was added in 2022 (Act 2022-222); the 2019 Tier 2 handbook doesn't have it.Ala. Code § 16-25-14(a)(4), (d); Handbook p. 17; Act 2022-222
- Check with TRS of AlabamaThe sources don't say how part of a year counts in the Tier 2 cut. Our calculator prorates by month.Partial-year treatment not stated (needsValidation 'tier2-reduction-partial-years').Ala. Code § 16-25-14(d)
Questions
Can Tier 1 members retire early?
Tier 1 has no reduced early retirement. With 25 years you can retire at any age with a full benefit; otherwise you wait until 60 with 10 years.
How much is the Tier 2 early cut?
2% for each year between 62 and your age at retirement, with at least 30 years of service. At 57 that's 10%.
Does the cut go away at 62?
The law reduces the service retirement allowance itself. Nothing in the sources says it is restored later.
Can sick leave get me to 30 years?
The July 2026 handbook says eligible members may convert unused sick leave to meet the minimum service for service retirement, for both tiers.
Source: TRS Member Handbook, July 2026 edition (back cover "7-2026"), pp. 17, 17-18. Also: Code of Alabama Title 16, Ch. 25 and 25A; 25 years at any age is unreduced); Act 2022-222. Last reviewed .