To determine your eligibility for participation in UAB Retirement Plans, see 1) the benefit eligibility chart for either UAB or UAB Hospital Management LLC and 2) your job assignment category (HR 411). Eligibility for retirement plans depends on which entity you work for (UAB or UAB Hospital Management LLC) and your job assignment.
Mandatory Retirement Program
The Teachers’ Retirement System (TRS) is a defined benefit pension plan (a specific benefit available upon retirement). Participation is mandatory, and employees contribute a percentage of their gross monthly tax-sheltered contributions up to the IRS 401(a) annual earnable compensation maximum. In addition to the employee contribution, the university contributes a percentage (as determined by the Alabama Legislature) of the institution’s total payroll, which is deposited into the State General Retirement Fund. An employee is considered vested in the TRS program when 10 years of creditable service is earned. Employees hired before Jan. 1, 2013 are classified as a Tier 1 member. Employees hired after Jan. 1, 2013 are classified as a Tier 2 member. For Tier 1 members, retirement income is provided with 25 years of participating TRS service at any age, or at age 60 with at least 10 years of service. For Tier 2 members, retirement income is provided at age 62 to employees with 10 or more years of participating TRS service.
Voluntary Retirement Programs
403(b) PLAN
The 403(b) plan is a voluntary, defined contribution, tax-deferred as well as Roth after-tax plan governed by the Internal Revenue Code 403(b). TIAA is the administrator for the voluntary retirement program. Vesting in the 403(b) plan is immediate. UAB matches the individual’s contributions up to 5 percent of gross monthly pay not to exceed the IRS 401(a) annual compensation limit. Eligibility for matching is limited to full-time regular exempt employees.
457(b) PLAN
UAB also offers a voluntary, defined-contribution, tax-deferred as well as Roth after-tax plan governed by Internal Revenue Code 457(b). Similar to the 403(b) plan, the 457(b) plan offers the same expanded investment options, convenient payroll deductions, pre-tax as well as Roth after-tax contributions, and tax-deferred growth through TIAA. There are no UAB matching contributions under this plan.
If you have questions about retirement plans or, if you terminate your service before qualifying for retirement benefits, please contact the Benefits Office.
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