Before you retire
| If you… | Your beneficiary gets |
|---|---|
| Ineligible to retire: Tier 1 under 60 with 1-25 years; any age, Tier 1 or 2, with 1-10 years | Member contributions + total interest + an amount equal to the member's salary for the prior plan year (July 1-June 30) |
| Less than 1 year, death job-related | Contributions + interest + an amount equal to salary at death |
| Less than 1 year, death not job-related | Contributions + interest + a matching amount up to $5,000 |
| Eligible to retire: Tier 1 with 25+ years (any age) or 60+ with 10+; Tier 2 62+ with 10+, or 30+ years (with 2% reduction per year under 62) | Choice of a lifetime benefit (Option 2 for a surviving spouse, Option 3 for another single beneficiary) or contributions + interest + prior plan year salary |
If death occurs more than 180 days after the last day in pay status, or after applying for a refund or terminating, the lump sum is the 'less than 1 year, not job-related' amount.
Term life
$15,000 term life benefit for a full-time active member (or one who dies within 90 days of active pay status); prorated for less than full time (half-time: $7,500). Handbook p. 16, Term Life Insurance Benefits; Ala. Code § 16-25-33
After you retire
Depends on the option chosen at retirement (Maximum: prorated final month only; Option 1: remaining account balance; Option 2: 100% for life; Option 3: 50% for life). Handbook p. 23 See payment options.
From the sources
- If you die before retiring and are not yet eligible, your beneficiary gets your contributions and interest plus an amount equal to your last plan-year salary (with 1+ years of service).Handbook p. 15
- If you die while eligible to retire, a single beneficiary can choose a lifetime benefit (Option 2 for a spouse, Option 3 for another person) or the lump sum.Handbook p. 15; Ala. Code § 16-25-14(i)(2)
- Full-time active members also have a $15,000 term life benefit (prorated for part-time).Handbook p. 16
- Your beneficiaries are paid after RSA receives the Application for Survivor Benefit form and a certified death certificate. With no designated beneficiary, the death benefit goes to your estate.Handbook p. 15, Preretirement Death Benefit
- You name primary and contingent beneficiaries on the Designation of Beneficiary Prior to Retirement form, and change them on the same form. If the primary beneficiary dies first, the contingent beneficiary is paid.Handbook p. 16, Change of Beneficiary
- Retirees who want to change a beneficiary must contact TRS of Alabama (see Replacement Beneficiary under payment options).Handbook p. 16, Change of Beneficiary
- If an active member dies, the family should contact the employer's payroll or personnel officer for forms. If a retiree dies, the family should contact TRS of Alabama.Handbook p. 16, Reporting the Death of a Member
Questions
What does my family get if I die while working?
Usually your contributions and interest plus a year's salary. If you were eligible to retire, your beneficiary can choose a lifetime benefit instead.
Is there life insurance?
Yes: $15,000 for full-time active members, less if you work part time.
What about after I retire?
That depends on the option you chose. With the Maximum, payments stop at your death.
Source: TRS Member Handbook, July 2026 edition (back cover "7-2026"), pp. 15, 16, 23. Also: Code of Alabama Title 16, Ch. 25 and 25A. Last reviewed .