The bill amends Sections 16-25-23 and 36-27-28 of the Code of Alabama 1975, focusing on the conditions under which retirement benefits from the Teachers' Retirement System and the Employees' Retirement System can be subjected to recovery actions for criminal financial obligations. The amendments replace the term "person" with "individual" in several instances and remove the requirement that cases must be assigned to the district attorney's restitution recovery division for the exemption from benefits to be lifted. Instead, the bill stipulates that restitution, fines, court costs, and other financial obligations ordered by a circuit or district court judge are not exempt if the amount is $1,000 or greater and the individual is a retiree or beneficiary receiving benefits.

Additionally, the bill allows a circuit or district court judge to order the retirement systems to pay up to 25% of the retiree's or beneficiary's gross monthly benefit to the circuit clerk to satisfy these obligations. The order must include specific identifying information about the individual and the financial obligations owed. The district attorney is required to notify the court when these obligations are paid in full, at which point the court will stop the diversion of funds. Any excess payments received by the circuit clerk must be returned to the respective retirement system within 60 days. The act is set to take effect on October 1, 2024.