The bill amends Sections 16-25-23 and 36-27-28 of the Code of Alabama 1975, focusing on the circumstances under which retirement benefits from the Teachers' Retirement System and the Employees' Retirement System can be subject to recovery actions. Key changes include the insertion of the term "individual" in place of "person" and the removal of specific language regarding the assignment of cases to the district attorney's restitution recovery division. The bill establishes that restitution, fines, court costs, and other financial obligations ordered by a court are not exempt from the protections typically afforded to retirement benefits, provided certain conditions are met, such as the amount of restitution being $1,000 or greater and the individual being a retiree or beneficiary receiving benefits.

Additionally, the bill allows for a court to order the retirement systems to pay up to 25% of a retiree's gross monthly benefit to the circuit clerk for the purpose of satisfying these financial obligations. The order must include detailed information about the individual and the financial obligations owed. The district attorney is required to notify the court when these obligations are fulfilled, at which point the diversion of funds will cease, and any excess payments must be returned to the retirement system. The act is set to take effect on October 1, 2024.