Alabama § 45-37-123.194 - Prohibition Against Diversion of Funds.

§ 45-37-123.194. Prohibition Against Diversion of Funds.

(a) Except as provided below and otherwise specifically required by law, it shall be impossible by operation of the plan or of the trust agreement, by termination of either, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement, or by any other means, for any part of the corpus or income of any trust fund maintained pursuant to the plan or any funds contributed thereto to be used for, or diverted to, purposes other than the exclusive benefit of members, former members, or their designated beneficiaries; and no funds of the system, whether in cash, securities, or otherwise, nor any income or yield thereof, shall be subject to or exacted on account of, any tax; and no retirement or disability allowance or right to return of contributions, or other benefits payable as set forth in the plan, shall be assignable or be subject to execution, levy, attachment, garnishment, or other legal process. Accordingly, the plan shall not recognize any domestic relations order attempting to provide a member’s benefits, or any portion thereof, to an alternate payee.

(b) In the event that the county shall make an excessive contribution under a mistake of fact, the pension board, or its agent, may demand repayment of the excessive contribution, and the trustees shall return the amount, adjusted for any income or loss in value so long as the amount is returned within one year of the date of the mistaken contribution. Notwithstanding the immediately preceding sentence, any return shall be limited to an amount that, in the judgment of the pension board, would not cause the system to become actuarially unsound.

(c) In the event that the plan makes an overpayment to a member, designated beneficiary, or other beneficiary for any reason, such as, miscalculation of a pension benefit or payment prior to the time that the member, designated beneficiary, or other beneficiary was entitled to payment, the pension board may elect to offset future pension benefits until the overpayment has been recouped by the trust fund to the extent allowed by law.

(d) Subject to applicable law, a member’s or designated beneficiary’s benefit may be offset for obligations to the county, the pension board, or the trust fund.