SB32 Alabama 2024 Session

Summary

Primary Sponsor

Will BarfootSenator

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

SB32 allows certain TRS and ERS retirement benefits to be diverted to pay criminal restitution under specific conditions, up to 25% of monthly benefits, with reporting and repayment rules, effective Oct 1, 2024.

What This Bill Does

The bill maintains the general exemption of retirement funds from taxes and most collection methods, but creates a targeted exception for restitution in criminal cases. If a retiree or beneficiary receiving TRS or ERS benefits has a restitution order of $1,000 or more and the case is handled by the district attorney's restitution division, the court may order that up to 25% of the retiree's gross monthly benefit (after deductions for child support or health insurance) be paid to the circuit clerk to cover restitution and related obligations. The order must list identifying and case details, the DA must notify when paid, and the court must stop diverting funds once the obligation is satisfied; any overpayment must be returned to the retirement system within 60 days. The same rules apply to both TRS and ERS.

Who It Affects

• Retirees or beneficiaries currently receiving benefits from the Teachers' Retirement System or Employees' Retirement System, who could have up to 25% of their gross monthly benefits diverted to satisfy restitution and related court obligations under qualifying criminal cases.
• Courts, district attorneys (via the restitution recovery division), and circuit clerks, who would process, monitor, and collect the payments from retirement benefits and ensure proper stopping and repayment of funds when appropriate.

Key Provisions

• Retirement funds under TRS and ERS remain exempt from state/municipal tax and from levy, sale, garnishment, or other processes except as provided in the bill's restitution provisions.
• A criminal restitution order of $1,000 or more, issued to a retiree or beneficiary currently receiving TRS or ERS benefits and assigned to the district attorney's restitution recovery division, allows the court to direct the TRS or ERS to pay up to 25% of the retiree's gross monthly benefits (after deductions for child support or health insurance) to the circuit clerk to satisfy restitution, fines, costs, or other obligations.
• The court order must specify the individual's name, date of birth, SSN, the restitution amount, case details, and the amount or percentage to be paid, along with other required identifying and case information.
• The district attorney must notify the court when the restitution payments are paid in full; the court must stop diverting funds, and any overpayment received by the circuit clerk must be returned to the applicable retirement system within 60 days with proper identifying information.
• A parallel provision mirrors these rules for Employees' Retirement System benefits, with identical conditions and procedures.

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