Updated October 30, 2026. Quick answer: Alabama Tier 2 members of the Employees’ Retirement System and the Teachers’ Retirement System, who first began eligible employment on or after January 1, 2013 and had no eligible service in either system before that date, are eligible to retire at age 62 with at least 10 years of service credit (age 56 for State Police and certain public-safety members). Members are vested after 10 years of creditable service. The current benefit factor is 1.65% (2.375% for State Police), applied to an average of the highest five years. ERS Tier 1 members can retire at age 60 with 10 years, or at any age after 25 years of service credit.
Who is in Tier 2
“Tier 2 plan member: Any member of the Retirement System who first began eligible employment with an Employees’ Retirement System or a Teachers’ Retirement System participating employer on or after January 1, 2013, and who had no eligible service in the Employees’ Retirement System or the Teachers’ Retirement System prior to January 1, 2013.”
Tier 2 retirement age
The ERS Tier 2 handbook lists this condition for eligibility to receive retirement benefits: “He or she has at least 10 years of service credit and has attained the age of 62 (age 56 for State Police and certified, full-time firefighter, correctional officer, and law enforcement officer).” The TRS Tier 2 handbook lists: “He or she has at least 10 years of service credit and has attained the age of 62 (age 56 for State Police and certified, full-time firefighter and law enforcement officer).”
Vesting
“Members have a vested status in the ERS after accumulating 10 years of creditable service.” “Members have a vested status in the TRS after accumulating 10 years of creditable service.”
ERS Tier 1
The ERS Tier 1 handbook lists two routes: “he or she has at least 10 years of service credit and has attained the age of 60 (age 52 for State Police)” or “after accumulating 25 years of service credit (30 years for agencies who have not adopted 25-year retirement) at any age”.
What the pension is based on
Tier 2: “The current benefit factor, as established by the Alabama Legislature, is 1.65%.” The ERS Tier 2 handbook’s footnote to that factor reads: “* 2.375% for State Police”. “Average Final Salary: The average of the highest five fiscal years (October-September) out of the last 10 fiscal years the member made contributions. Partial years are included when calculating the average final salary.” “The member must be age 62 (age 56 for FLC or State Police), or older to receive a retirement benefit. The retirement benefit cannot exceed 80% of the Average Final Salary.” Tier 1: “Benefit Factor: The current benefit factor, as established by the Alabama Legislature, is 2.0125%.” “Average Final Salary: The average of the highest three fiscal years (October-September) out of the last 10 fiscal years the member made contributions.”
A worked example with invented numbers
Take an invented Tier 2 member with 25 years of service credit. That is 25 years at 1.65%, or 41.25% (computed) of a final average salary of $60,000 (invented, for the computation), which comes to $24,750 a year (computed).
What the documents do not say
Neither Tier 2 handbook describes an early service retirement age or a reduction in the text read here, so check with RSA whether one applies to you. The TRS Tier 1 handbook was not read, so the Tier 1 summary rests on the ERS Tier 1 handbook alone and the TRS rules may differ. The handbooks carry no publication date in the text read. The State Police, firefighter, correctional officer and law enforcement provisions are not covered beyond the age mentioned above.
Common mistakes
- Using the Tier 1 ages for a Tier 2 member. Tier 2 starts at age 62 with 10 years.
- Assuming age 56 applies to everyone. The handbooks give it only for State Police and certain public-safety members.
- Expecting the benefit to exceed the cap. The ERS Tier 2 handbook says it cannot exceed 80% of the Average Final Salary.
Related: Alabama RSA retirement decisions, the Alabama RSA COLA for 2027, how public pension decisions work, and whether Alabama taxes pensions.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with retirement income
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Employees’ Retirement System of Alabama, ERS Tier 2 Member Handbook: www.rsa-al.gov
- Teachers’ Retirement System of Alabama, TRS Tier 2 Member Handbook: www.rsa-al.gov
- Employees’ Retirement System of Alabama, ERS Tier 1 Member Handbook: www.rsa-al.gov
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.