SB244 Alabama 2025 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

2025 Regular Session

Title

Theft of employee retirement benefits, crime created

Summary

The bill creates a new offense called aggravated theft of employee retirement benefits and sets penalties for stealing or misusing retirement plan funds.

What This Bill Does

It defines aggravated theft of employee retirement benefits as embezzling, stealing, or unlawfully taking or converting retirement plan funds or assets for personal use or another's use. It covers major Alabama retirement plans, including the Retirement Systems of Alabama and specific plans such as Teachers', Employees', and Judicial Retirement Funds, plus any plan under Title 36 Chapters 27A or 27C. It provides an affirmative defense if actions were taken in good faith reliance on someone in a position of authority under color of law. It imposes a six-year statute of limitations from the discovery of the deception, designates the crime as a Class C felony, limits probation to 10 years unless allowed by law, and treats the conviction as a Class A or Class B felony for certain purposes; the act becomes effective October 1, 2025.

Who It Affects

• Potential offenders who steal or misappropriate retirement benefits would face a new crime and penalties under this bill.
• Retirement plans and their administrators, including the listed plans and funds connected to employee retirement benefit plans, are affected because the bill defines protected assets and expands criminal liability for misuse of those funds.

Key Provisions

• Creates the offense of aggravated theft of employee retirement benefits, defined as embezzling, stealing, or unlawfully and willfully abstracting or converting plan funds or assets to personal use or another's use.
• Expands the definition of 'employee retirement benefit plan' to include the Retirement Systems of Alabama, Teachers' Retirement System, Employees' Retirement System, Judicial Retirement Fund, and plans under Title 36 Chapters 27A or 27C.
• Provides an affirmative defense for good-faith actions taken in the course of employment under color of law or authority.
• Sets a six-year limitations period starting from the discovery of the deception; classifies the offense as a Class C felony; caps probation at 10 years unless otherwise authorized; treats conviction as a Class A or Class B felony for purposes of Section 15-18-8; and establishes an effective date of October 1, 2025.

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

Subjects

Crimes & Offenses