The bill amends Sections 16-25-23 and 36-27-28 of the Code of Alabama 1975, concerning the Teachers' Retirement System and the Employees' Retirement System, respectively. It revises the conditions under which pension, annuity, or retirement allowance benefits are protected from recovery actions such as levy, sale, garnishment, attachment, or any other process. The bill changes the language from "a person" to "an individual" and removes the word "hereby" to clarify the exemption of these benefits from such actions, except as specifically provided in the chapter.

The bill also outlines circumstances where retirement benefits can be subject to recovery for restitution, fines, court costs, fees, or other financial obligations resulting from a criminal case. It stipulates that these obligations are not exempt if the amount ordered is $1,000 or greater and the individual is a retiree or beneficiary currently receiving benefits. The bill removes the requirement that the case be assigned to the district attorney's restitution recovery division. It allows for up to 25% of the retiree's or beneficiary's gross monthly benefit to be directed towards these obligations, after deductions for child support or health insurance for dependents. The bill includes detailed procedures for the order and notification process when obligations are fulfilled. The act will become effective on October 1, 2024.