The Alabama Education Retirees Foundation (originally named the Alabama Retired Teachers Foundation) was officially incorporated on September 29, 1989, and received its Federal Income Tax exemption under 501 (c) (3) of the Internal Revenue Code on October 31, 1989. The Foundation was created by the Alabama Retired Teachers Association, Inc. (ARTA), which is now the Alabama Education Retirees Association, Inc. (AERA). One of the purposes of the Foundation is to offer scholarships for those who are currently engaged in teaching as a career. The Foundation has been actively pursuing contribution to build a financial base that will provide the financial support for a series of scholarships awarded to educators who wish to pursue further training.

The initial action of the Foundation included the creation of the Elementary/Secondary Education Scholarship Program. This program is designed to provide onetime scholarships for educators who are currently employed in a state public school system (K-12). Scholarship recipients will receive training in areas of counseling, mathematics, science, computer education, library media, special education, English as a second language, or other specialized areas where a proven need exists. The Foundation's board of directors determines the amount and number of the scholarships annually.

In 2010, the Foundation awarded nine $1500 scholarships to active educators who are AEA members. One recipient is chosen from each of AERA's nine districts. A total of 173 scholarships have been awarded since the program began in 1991. Also, non-certified personnel are eligible to participate in the scholarship program to receive assistance in obtaining certification.

To supplement the financial support from state membership and local units, the Foundation actively seeks contribution to reach its goal. One significant means of contributing is to have the name of a loved one or friend included on the "Hall of Fame" wall located in the AERA state office in Montgomery for a contribution of $100 or more. All donation are tax deductible. Additional information may be obtained by calling the state office at 1-800-537-6867.