Retirement benefits, revise circumstances when an individual's pension, annuity, or retirement allowance benefits are subject to certain recovery actions
Maddy summaryThis bill updates the rules for when retirement funds from Alabama's Teachers' Retirement System and Employees' Retirement System can be taken to pay certain criminal court debts. Under the new law, these pensions remain protected from most collection actions, but they can now be used to pay restitution, fines, and court costs if the debt is at least $1,000 and the case is handled by a specific district attorney division. If a judge approves the request, the retirement system will automatically send up to 25% of the retiree's monthly payment to the court, stopping once the debt is fully paid. The changes apply to both teachers and other state employees, effective October 1, 2024.
Signed into law May 17, 2024
0 co-sponsors