HB212 Alabama 2024 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2024

Title

Retirement benefits, revise circumstances when an individual's pension, annuity, or retirement allowance benefits are subject to certain recovery actions

Summary

The bill changes when Alabama Teachers' and Employees' Retirement System benefits can be taken to pay criminal restitution and other court-ordered debts.

What This Bill Does

It keeps the general protection of retirement benefits from taxes and garnishments, but adds a new exception that allows up to 25% of a retiree's or beneficiary's monthly TRS or ERS benefit to be diverted to satisfy restitution, fines, court costs, or related obligations under specific conditions. The conditions require the restitution amount to be at least $1,000, the recipient to be currently receiving TRS or ERS benefits, and the case to be assigned to the district attorney's restitution recovery division. The bill also requires detailed orders, court and retirement system coordination, and repayment of any overpayments within 60 days after the debt is settled, with funds returned to the appropriate retirement system.

Who It Affects

• Retirees or beneficiaries who currently receive benefits from the Teachers' Retirement System or Employees' Retirement System; their monthly benefits could be reduced by up to 25% to satisfy court-ordered restitution and related obligations under certain criminal cases.
• District attorneys, circuit/district courts, and the retirement systems (TRS and ERS) involved in processing and enforcing restitution orders, including issuing diversion orders, tracking payments, and ensuring any excess funds are returned.

Key Provisions

• Retains general exemption of TRS/ERS benefits from state/municipal tax, levy, sale, garnishment, or other processes, except as otherwise provided in the bill.
• Adds a new exception allowing the court to order TRS benefits to divert up to 25% of the retiree's/beneficiary's gross monthly benefit (after deductions) to pay restitution, fines, court costs, fees, or other financial obligations if: the restitution amount is $1,000 or more, the recipient is a current TRS/ERS beneficiary, and the case is assigned to the district attorney's restitution recovery division.
• Requires the court order to specify identifying information, case numbers, amount details, and the specifics of the funds to be paid, and to require notification when paid in full and cessation of diversion when debt is satisfied.
• If excess payments are received, requires the retirement system to return the overpaid amount within 60 days with proper identifying information.
• Applies similarly to the Employees' Retirement System under the same conditions and procedures, including up to 25% diversion and reporting requirements.
• Effective date: October 1, 2024.

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