Existing Plans


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Departments > Retirement System > Existing Plans

EXISTING PLANS

25 YEAR RETIREMENT PLAN

The 25 Year Plan was created by Act #290 of the 2005 Special Session of the Alabama Legislature and became effective October 1, 2005. All employees hired on or after this date fall under its provisions. All employees hired prior to this date were given a choice between the new 25 Year Plan and the existing 20 Year Plan.
Click on the Group I Employees or Group II Employees links for additional information on this plan.

ERIP (EMPLOYEES' RETENTION INCENTIVE PLAN)

ERIP or the Employees' Retention Incentive Plan was placed into effect January 1, 2005 and may be used with either the 20 or 25 Year Plan.

For additional information click on the ERIP link.

20 YEAR PLAN

The 20 Year Plan was originally put in place June 1, 1959, subsequently amended and then replaced with the 25 Year Plan October 1, 2005. Employees hired on or before September 30, 2005 were given the option of remaining in the 20 Year Plan or moving to the 25 Year Plan.

The 20 Year Plan allowed employees to retire after accumulating 20 years of creditable service or at the age of 65 for Group I employees or 62 for Group II employees. Benefit calculations are as follows:

Group I employee benefits are calculated at 2% a year for each year of creditable service up to 20 years and 1% for each year thereafter up to a maximum of 60%. This percentage is then multiplied times the highest 12 months of base pay from the final 5 years worked.

Group II employee benefits are calculated at 2.5% a year for each year of creditable service up to 20 years and 1% for each year thereafter up to a maximum of 60%. This percentage is then multiplied times the highest 12 months of base pay from the final 5 years worked.