The one question
Did you have TRS of Alabama or ERS service credit before Jan. 1, 2013? Yes: Tier 1. No, your first job covered by TRS of Alabama or ERS started on or after that date: Tier 2. Ala. Code § 16-25-1(29); Handbook p. 6, Tier 1 or Tier 2
Your MOS account statement (mso.rsa-al.gov) shows your service history.
If you had TRS of Alabama or ERS service before 2013, took a refund and came back later, the sources don't say whether you are Tier 1 or Tier 2.
We go by the first date entered; you can choose your tier yourself.
Ala. Code § 16-25-1(29)-(30); Handbook pp. 6, 11Tier 1 and Tier 2 side by side
| Tier 1 | Tier 2 | |
|---|---|---|
| Who | TRS of Alabama or ERS service credit before Jan. 1, 2013 | First job covered by TRS of Alabama or ERS on or after Jan. 1, 2013, with no earlier serviceAla. Code § 16-25-1(29); Handbook p. 6, Tier 1 or Tier 2; Ala. Code § 16-25-1(30); Handbook p. 6, Tier 1 or Tier 2 |
| Full benefit | age 60 with at least 10 years of service; or 25 years of service at any age | 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)Ala. Code § 16-25-14(a)(1), (a)(4); Handbook p. 17, Service Retirement, Tier 1 Members; Ala. Code § 16-25-14(a)(1); Handbook p. 17, Service Retirement, Tier 2 Members |
| Retiring early | None needed: 25 years at any age is a full benefit | 30 years of service at any age, reduced 2% for each year between age 62 and the age at retirementHandbook p. 17 (no reduced early retirement for Tier 1; 25 years at any age is unreduced); 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') |
| Benefit factor | 2.0125% a year of service | 1.65% a year of serviceHandbook p. 21, Retirement Benefit Factor ('2.0125%'); Ala. Code § 16-25-14(c)(1) ('Two and one-eightieth percent'); Handbook p. 22, Retirement Benefit Factor ('1.65%'); Ala. Code § 16-25-14(d) |
| Average final salary | Highest 3 of the last 10 years | Highest 5 of the last 10 yearsHandbook p. 21, Average Final Salary; Ala. Code § 16-25-1(18); Handbook p. 22, Average Final Salary; Ala. Code § 16-25-1(18) |
| Benefit cap | None stated | 80% of average final salaryAla. Code § 16-25-14(d) ('shall not exceed eighty percent (80%) of the member's average final compensation'); Handbook p. 22 |
| Pay that counts | Up to 120% of base pay | Up to 125% of base pay (overtime counts, subsistence pay doesn't)Ala. Code § 16-25-1(17); Handbook p. 8, Tier 1 Member Contributions |
| You contribute | 7.5% of pay (8.5% firefighters, law enforcement, correctional officers) | 6.2% (7.2%)Handbook p. 8; Ala. Code § 16-25-21(1)a. |
| If you leave vested | Benefit from the 1st of the month after age 60 | Benefit from the 1st of the month after age 62Handbook p. 10, Ineligible for Retirement (1.) |
| DROP | Was available; closed to new applications March 24, 2011 | Never availableHandbook pp. 27-28, Deferred Retirement Option Plan (DROP) Tier 1 Only; Ala. Code § 16-25-150(b), (c), (f), 16-25-151 |
What it means in dollars
On the same pay and service, a Tier 2 benefit is 82% of a Tier 1 benefit, before any Tier 2 early cut, and the Tier 2 average uses five years instead of three. See the benefit formula.
What the sources say
- TRS of Alabama has two tiers. You are Tier 1 if you had TRS of Alabama or ERS service credit before Jan. 1, 2013. You are Tier 2 if you first started in a job covered by TRS of Alabama or ERS on or after Jan. 1, 2013 with no earlier service.Handbook p. 6, Tier 1 or Tier 2; Ala. Code § 16-25-1(29)-(30)
- The tiers differ in retirement age (60 vs. 62), the benefit factor (2.0125% vs. 1.65%), the salary average (highest 3 vs. highest 5 of the last 10 years) and contributions (7.5% vs. 6.2% of pay).Handbook pp. 8, 17, 21-22
- Check with TRS of AlabamaIf you had service before 2013, took a refund and came back later, the sources we read don't say which tier you're in. Ask TRS of Alabama.No source addresses refunded-and-returned members (needsValidation 'tier-refund-returners').Ala. Code § 16-25-1(29); Handbook p. 11
Questions
I started in 2010, left, and came back in 2015. Which tier am I?
If your pre-2013 service is still on your account, Tier 1. If you took a refund of it, the sources we read don't say. Ask TRS of Alabama before you rely on either.
Does ERS service count for the tier?
Yes. The definitions count service in either the Employees' Retirement System or TRS of Alabama before Jan. 1, 2013.
Can Tier 2 members convert sick leave?
Yes, now. The 2019 Tier 2 handbook said no, but the law changed in 2021 and the July 2026 handbook allows it for both tiers.
Source: TRS Member Handbook, July 2026 edition (back cover "7-2026"), pp. 6, 8, 9, 10, 11, 17, 20, 21, 21-22, 22, 27-28. Also: Code of Alabama Title 16, Ch. 25 and 25A; 25 years at any age is unreduced). Last reviewed .