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 subject to recovery actions for criminal financial obligations. The amendments replace the term "person" with "individual" and clarify 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. Specifically, these conditions include that the restitution amount must be $1,000 or greater, and the individual must be a retiree or beneficiary currently 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 court for the purpose of satisfying these financial obligations. The bill also outlines the necessary details that must be included in the court order, such as the individual's identifying information and the specifics of the financial obligations. The act is set to take effect on October 1, 2024.