HB293 Alabama 2022 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2022

Title

Retirement benefits, revise circumstances when an individual's pension, annuity, or retirement allowance benefits are subject to certain recovery actions, Secs. 16-25-23, 36-27-28 am'd.

Summary

HB293 creates a narrow exception to the general retirement-benefit exemption, allowing TRS and ERS retirees to have up to 25% of their monthly benefits garnisheed to pay criminal restitution in certain cases.

What This Bill Does

The bill keeps retirement benefits generally exempt from taxes and garnishments, but adds a specific condition under which part of those benefits can be used to satisfy criminal restitution. If a retiree or beneficiary currently receiving TRS or ERS benefits owes restitution of $1,000 or more and the case is assigned to the district attorney's restitution division, the court may order up to 25% of the retiree's gross monthly benefit (after certain deductions) to be paid toward the restitution. The order must include detailed personal and case information, and the district attorney must notify the court when the debt is paid in full; any overpayment must be returned to the retirement system within 60 days. The same rules apply separately for TRS and ERS, and the law becomes effective after the third month following passage/approval.

Who It Affects

• Retirees or beneficiaries currently receiving Teachers' Retirement System (TRS) benefits who are in a criminal restitution case meeting the ($1,000+ and DA restitution division) criteria, potentially subject to up to 25% garnishment of monthly benefits.
• Retirees or beneficiaries currently receiving Employees' Retirement System (ERS) benefits who are in a criminal restitution case meeting the ($1,000+ and DA restitution division) criteria, potentially subject to up to 25% garnishment of monthly benefits.

Key Provisions

• Retirement benefits are generally exempt from state/municipal tax, levy, sale, garnishment, and other processes, except as amended by this act for restitution cases.
• A restitution order of $1,000 or more, affecting a retiree/beneficiary currently receiving TRS or ERS benefits, and assigned to the DA's restitution recovery division, creates an exception to the general exemption.
• Court may order that up to 25% of the retiree's gross monthly benefit (minus deductions for child support or health insurance) be paid to satisfy restitution, fines, court costs, fees, or other financial obligations.
• The court order must specify personal and case details, including name, DOB, SSN, amounts owed, case numbers, county, clerk’s name/address, and that payments are for criminal disposition.
• District attorney must notify the court when full payment is made; any overpayment must be returned to the TRS/ERS within 60 days with proper identifying information.
• The provisions apply separately to TRS and ERS, with corresponding sections amended (16-25-23 for TRS and 36-27-28 for ERS).
• The act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement Benefits