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PensionWatch

Alabama Teachers Retirement System (TRS)

public plan · State of Alabama · Montgomery, AL

ACTIVE
B
Pension Health Score
65/100
Funding Status68% Funded
0%80% threshold100%
$27.5B
Total Assets
$40.3B
Total Liabilities
$12.8B
Unfunded Liability
178,000
Participants

Funding History

What This Means for You

Alabama Teachers Retirement System (TRS) is in good financial health at 68% funded. This means for every dollar the plan owes in future benefits, it has 68 cents in assets to cover it. As a public pension, benefits are typically backed by the taxing authority of the sponsoring government. Participants in this plan have relatively low risk of benefit reductions.

Year-by-Year Funding

YearAssetsLiabilitiesFunding RatioContributions
2023$27.5B$40.3B68.2%$1.5B
2022$26.7B$39.8B67.0%$1.5B
2021$25.9B$36.9B70.0%$1.4B
2020$25.0B$39.1B64.0%$1.4B
2019$24.2B$36.7B66.0%$1.3B

Frequently Asked Questions

Alabama Teachers Retirement System (TRS) is 68% funded, meaning it has 68 cents in assets for every dollar in future benefit obligations. This is below the 80% threshold actuaries consider healthy, and may require increased contributions.

Alabama Teachers Retirement System (TRS) has 178,000 total participants, including 88,000 active employees and 90,000 retirees currently receiving benefits.

Alabama Teachers Retirement System (TRS) is not covered by the PBGC. Benefits depend entirely on the plan's assets and the sponsor's ability to fund it.

The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.

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Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.