HB212INTRODUCED
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HB212
J1UJNNF-1
By Representative Kiel
RFD: Ways and Means General Fund
First Read: 21-Feb-24
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5 J1UJNNF-1 01/04/2023 CNB (L)bm 2023-3814
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First Read: 21-Feb-24
SYNOPSIS:
Under existing law, certain pension, annuity, or
retirement allowance benefits under the Teachers'
Retirement System and the Employees' Retirement System
are subject to state or municipal tax, levy, sale,
garnishment, attachment, or any other related process
under certain circumstances.
This bill would revise the circumstances in
which an individual's pension, annuity, or retirement
allowance benefits under the Teachers' Retirement
System and the Employees' Retirement System are subject
to certain recovery actions.
A BILL
TO BE ENTITLED
AN ACT
Relating to retirement benefits; to amend Sections
16-25-23 and 36-27-28, Code of Alabama 1975, to revise the
circumstances in which an individual's pension, annuity, or
retirement allowance benefits under the Teachers' Retirement
System and the Employees' Retirement System are subject to
certain recovery actions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 16-25-23 and 36-27-28, Code of
Alabama 1975, are amended to read as follows:
"§16-25-23
(a) Except as provided in subsection (b), the right of
a personan individual to a pension; an annuity, or a
retirement allowance; to the return of contributions; the
pension, annuity , or retirement allowance itself; any optional
benefit or any other right accrued or accruing to any
personindividual under the provisions of this chapter; and the
monies in the various funds created by this chapter are hereby
exempt from any state or municipal tax and exempt from levy
and sale, garnishment, attachment , or any other process
whatsoever, and shall be unassignable except as in this
chapter specifically otherwise provided in this chapter .
(b)(1) Restitution, fines, court costs, fees, or any
other financial obligations in a criminal case ordered by a
circuit or district court judge in this state are not subject
to the exemption set out in subsection (a), provided allboth
of the following are satisfied:
a. The amount of the restitution ordered is in the
amount of one thousand dollars ($1,000) or greater.
b. The personindividual subject to the order is a
retiree or beneficiary who is currently receiving benefits
from the Teachers' Retirement System.
c. The case has been assigned to the district
attorney's restitution recovery division.
(2) If the requirements of subdivision (1) are met, and
upon a motion filed by the district attorney, the circuit or
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upon a motion filed by the district attorney, the circuit or
district court judge may order that the Teachers' Retirement
System pay to the circuit clerk of the court no more than 25
percent of the retiree's or beneficiary's gross monthly
benefit less any deductions for child support or health
insurance for any dependents, to be applied to the balance of
the restitution, fines, court costs, fees, or other financial
obligations ordered in the criminal case.
(3) An order under subdivision (2) shall set out all of
the following:
a. The individual's name, date of birth, and Social
Security number.
b. The amount of restitution ordered is in the amount
of one thousand dollars ($1,000) or greater.
c. The amounts of restitution, fines, court costs,
fees, or any other financial obligations owed, detailed
individually.
d. The relevant case numbers.
e. The county in which the case was brought.
f. The circuit clerk's name and mailing address.
g. That the restitution, fines, court costs, fees, or
other financial obligations are payable as a result of a
criminal disposition.
h. The amount or the percentage of funds to be paid.
(4) The district attorney shall notify the court
whenever the restitution, fines, court costs, fees, or other
financial obligations are paid in full. Thereafter, the court
shall issue an order to stop the diversion of the individual's
funds. Any payment received by the circuit clerk in an amount
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funds. Any payment received by the circuit clerk in an amount
over what was owed shall be paid back to the Teachers'
Retirement System within 60 days with the specific identifying
information as to the retiree or the beneficiary to whom it is
owed."
"§36-27-28
(a) Except as provided in subsection (b), the right of
a personan individual to a pension, an annuity, a retirement
allowance or to the return of contributions, the pension,
annuity, or retirement allowance itself and any optional
benefit or any other right accrued or accruing to any
personindividual under the provisions of this article and the
monies in the various funds created by this chapter are hereby
exempt from any state or municipal tax and exempt from levy
and sale, garnishment, attachment , or any other process
whatsoever and shall be unassignable except as in this article
specifically otherwise provided.
(b)(1) Restitution, fines, court costs, fees, or any
other financial obligations in a criminal case ordered by a
circuit or district court judge in this state are not subject
to the exemption set out in subsection (a), provided allboth
of the following are satisfied:
a. The amount of the restitution ordered is in the
amount of one thousand dollars ($1,000) or greater.
b. The personindividual subject to the order is a
retiree or beneficiary who is currently receiving benefits
from the Employees' Retirement System.
c. The case has been assigned to the district
attorney's restitution recovery division.
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attorney's restitution recovery division.
(2) If the requirements of subdivision (1) are met,
and upon a motion filed by the district attorney, the circuit
or district court judge may order that the Employees'
Retirement System pay to the circuit clerk of the court no
more than 25 percent of the retiree's or beneficiary's gross
monthly benefit less any deductions for child support or
health insurance for any dependents, to be applied to the
balance of the restitution, fines, court costs, fees, or other
financial obligations ordered in the criminal case.
(3) An order under subdivision (2) shall set out all
of the following:
a. The individual's name, date of birth, and Social
Security number.
b. The amount of restitution ordered is in the amount
of one thousand dollars ($1,000) or greater.
c. The amounts of restitution, fines, court costs,
fees, or any other financial obligations owed, detailed
individually.
d. The relevant case numbers.
e. The county in which the case was brought.
f. The circuit clerk's name and mailing address.
g. That the restitution, fines, court costs, fees, or
other financial obligations are payable as a result of a
criminal disposition.
h. The amount or the percentage of funds to be paid.
(4) The district attorney mustshall notify the court
whenever the restitution, fines, court costs, fees, or other
financial obligations are paid in full. Thereafter, the court
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financial obligations are paid in full. Thereafter, the court
shall issue an order to stop the diversion of the individual's
funds. Any payment received by the circuit clerk in an amount
over what was owed shall be paid back to the Employees'
Retirement System within 60 days with the specific identifying
information as to the retiree or the beneficiary to whom it is
owed."
Section 2. This act shall become effective on October
1, 2024.
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