Important Information for 2013
Using the CRA Application
The CRA application allows an employer to verify if an employee should be
placed under Tier I or Tier II for retirement purposes. It is very important that
employees hired on or after January 1, 2013, are entered in the payroll system
with the correct retirement tier.
 To determine if a new employee is Tier I or Tier II status, you must visit the
RSA website at https://cra.rsa-al.gov for verification.
User Name: CRA-Upload
Password: [email protected]@d (that is the number “0”)
 Enter the nine digit SSN for your employee. Based on current RSA records,
the employee’s name and Tier status will be provided. You will be able to
print the page for your records.
 If you believe the RSA records are incorrect, please contact the RSA to
discuss the Tier status before initiating the first payroll deduction for the
Using the CRA Application
 The only way to accurately verify the Tier status is by
accessing the RSA website. DO NOT use the ESMT
history to verify Tier status for an employee.
Employees may have previous creditable retirement service through
other plans outside of state government that will not be reflected on
the ESMT screen.
An employee may have a prior ESMT record but was employed in a
classification in which they did not contribute to the RSA so they
may not have any actual retirement service credit.
 Members entered with incorrect Tier or retirement codes
will over/under contribute to retirement and require
further corrective action by your agency.
Using the CRA Application
CRA Login Page
 Enter the User Name and Password
Using the CRA Application
 To verify if an employee should be placed under Tier I or Tier
II, you will need to select the “Check Employee Tier Status”
button at the bottom of the screen.
Using the CRA Application
Example #1
 Enter the SSN for the employee you wish to verify on the
screen below.
Using the CRA Application
Example #1
 The SSN was not found in the system. This employee should
be placed under Tier II.
Using the CRA Application
Example #2
 Enter the SSN for the employee you wish to verify on the
screen below.
Using the CRA Application
Example #2
 The SSN was found in the system. This employee should be
placed under Tier I.
 Always print a copy of the Tier Status Report and maintain a
copy in the personnel file of the employee.
Tier I and Tier II Comparison
Tier I
Date of Employment
Prior to January 1, 2013
Member Contribution Rate
Retirement Eligibility
Retirement Factor
Disability Retirement
Tier II
On or after January 1, 2013
5% or 7.5% for Regular
6% or 8.5% for FLC
10.0% for State Police
25 years of service at any
10 years of service at age
60 (age 52 for State
No 25-year retirement
10 years of service at age
62 (age 56 for FLC
employees and State
2.0125% for Regular
2.875% for State Police
1.650% for Regular
2.375% for State Police
No Change
6.0% for Regular
7.0% for FLC Employees
10.0% for State Police
New disability standard
Tier I and Tier II Comparison
Tier I
Tier II
Average Final Salary
Average of the highest three
years of the last ten years
Average of the highest five
years of the last ten years
Benefit Cap
80% of Average Final Salary
Retirement Contributions
on Overtime Pay
Earnable Compensation
cannot exceed 120% of base
Earnable Compensation
cannot exceed 125% of base
Sick Leave Conversion
FLC Bonus Year/State
Police Bonus
Postretirement Employment
 RSA has a statutory duty to suspend the pension
payments of retirees who return to work for an ERS
participating employer in violation of the “return to
work” provisions of the ERS law.
 The law allows a retiree to work for a participating
employer without suspension of his benefits if (1) the
retiree is not employed in a permanent fulltime
capacity and (2) in 2013, earns $23,000 or less per
calendar year.
Postretirement Employment
All participating employers have a continuing duty to provide information to the RSA to enforce
the pension suspension rules. You must provide the following information as soon as possible but
no more than 30 days after the retiree is engaged to perform work for your agency.
1. The names of all RSA retirees who perform services for your entity even if that retiree has
been hired through a personal services contract, a contract with a third party or as an
independent contractor. (If there are none, you must let us know no later than
September 30, 2013.)
2. The annual amount of compensation paid to the retiree.
3. A statement of whether the retiree works full-time, part-time and/or in a permanent
4. Copies of any contract or employment agreement related to the retiree’s services.
5. A description of the manner in which the retiree is paid.
6. A description of the duties performed by the retiree, including how the retiree gets
7. A description of where and when the retiree performs his/her duties, including whether the
retiree uses his/her own equipment or that of the participating employer.
8. Any other information which is relevant under the IRS “twenty factor” test, a copy of which is
included in this packet.
Postretirement Employment
A retiree of the Employees’ Retirement System (ERS) or Teachers’ Retirement System
(TRS) who is restored to active service with an ERS or TRS member agency may
continue to receive full retirement benefits provided that the retired member meets
both the following conditions:
1. Retiree must not be employed in a permanent full-time capacity.
2. The retiree’s compensation during the 2013 calendar year cannot exceed
$23,000.00. The earnings limit in calendar year 2013 and each calendar year
thereafter shall be increased by the same percentage increase as the increase in
the Consumer Price Index.
If a retiree’s compensation from an ERS or TRS member agency exceeds the above
limit, the retirement benefit will be suspended for the remainder of the calendar year.
During the year in which retirement is effective, retirees are subject to a prorated
earnings limit based upon the number of months remaining in the year.
Postretirement Employment
An ERS retiree who is employed with a TRS member agency
in a permanent full-time position eligible for retirement
coverage must begin participation in the TRS. The member’s
ERS retirement account will be terminated and the remaining
funds and creditable service will be transferred and credited
to the account established in the TRS.
An ERS or TRS retiree may serve for compensation in an
elected public office with the state, a county, or an
incorporated municipality and shall be eligible to continue to
receive his or her retirement benefit provided that the public
office is not covered by the ERS or TRS. If the office, whether
full-time or part-time, is covered by the ERS or TRS, the
retiree shall be subject to the earnings limit.
Postretirement Employment
The compensation of retirees who provide services to
participating agencies on a contractual basis may be subject
to the above-stated limitations. If a retiree has entered into
or is considering entering into a contract with a participating
agency of the ERS or TRS, it is recommended that the retiree
provide a copy of the contract or proposed contract to the
ERS or TRS for a determination as to whether or not such
contract would affect the retiree’s benefit.
Employment with private industry, private education, or a
nonparticipating agency will not affect a service retiree’s
benefit from the ERS.
Postretirement Employment
In addition to the earnings limitations stated above, a disability
retiree’s earnings are also limited to the difference between his/her
average final compensation and annual retirement benefit
regardless of whether or not the employer is an ERS or TRS
member agency. The average final compensation is the salary used
in the computation of the disability retirement benefit.
The State Ethics commission recommends that a retired public
official or public employee who desires to come back to work on a
part-time basis contact the Ethics Commission for a determination
as to whether or not doing so would be prohibited under the
Revolving Door provisions of the Ethics Law.
The ERS should be notified immediately when a retiree’s
employment status or compensation does not comply
with the above limitations.
Postretirement Employment
The following formula is used to calculate the prorated
earning limit for retired employees who return to work in
the same calendar year in which they retired.
Step 1: Take the number of months left in the calendar
year and divide by 12 (months)
Step 2: Multiply $23,000 (yearly earnings limit for 2013)
by the percentage from Step 1.
Step 3: The amount from Step 2 is the total earnings limit
for the current calendar year.
Postretirement Employment
7 months left divided by 12 months = 58%
$23,000 x 58% = $13,340
(maximum earnings limit for
the remainder of the calendar year)

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