January 30, 2004
HOUSE BILL No. 1068
_____
DIGEST OF HB 1068
(Updated January 27, 2004 4:19 pm - DI 110)
Citations Affected: IC 2-3.5; IC 5-10.3; IC 10-12; IC 21-6.1; IC 36-8;
noncode.
Synopsis: Withholding from pensions for child support. Provides that
benefit payments from certain public pension funds are subject to
withholding for child support.
Effective: July 1, 2004.
Young D, Adams T, Moses
,
Lawson L
January 13, 2004, read first time and referred to Committee on Judiciary.
January 29, 2004, reported _ Do Pass.
January 30, 2004
Second Regular Session 113th General Assembly (2004)
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HOUSE BILL No. 1068
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 2-3.5-4-11; (04)HB1068.1.1. -->
SECTION 1. IC 2-3.5-4-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 11. (a) Except as
provided in subsections (b) and (c), all benefits and assets in the
defined benefit fund are exempt from levy, sale, garnishment,
attachment, or other legal process. However,
(b) A participant's benefits may be transferred to reimburse the state
for loss resulting from the participant's criminal taking of state property
if the board receives adequate proof of the loss. The loss must be
proven by conviction of a felony or misdemeanor.
(c) Notwithstanding any other provision of this chapter, any
payment made to a participant from the defined benefit fund is
subject to withholding in accordance with applicable law to enforce
the participant's legal obligation to provide child support.
SOURCE: IC 2-3.5-5-9; (04)HB1068.1.2. -->
SECTION 2. IC 2-3.5-5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9.
(a) Except as
provided in subsections (b) and (c), all benefits and assets in the
defined contribution fund are exempt from levy, sale, garnishment,
attachment, or other legal process. However,
(b) A participant's benefits may be transferred to reimburse the state
for loss resulting from the participant's criminal taking of state property
if the board receives adequate proof of the loss. The loss must be
proven by conviction of a felony or misdemeanor.
(c) Notwithstanding any other provision of this chapter, any
payment made to a participant from the defined contribution fund
is subject to withholding in accordance with applicable law to
enforce the participant's legal obligation to provide child support.
SOURCE: IC 5-10.3-8-9; (04)HB1068.1.3. -->
SECTION 3. IC 5-10.3-8-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. (a) Except as
provided in this subsection and subsection (d), all benefits, refunds
of contributions, and money in the fund are exempt from levy, sale,
garnishment, attachment, or other legal process. However, the
member's contributions or benefits, or both, may be transferred to
reimburse his employer for loss resulting from the member's criminal
taking of his employer's property by the board if it receives adequate
proof of the loss. The loss resulting from the member's criminal taking
of his employer's property must be proven by a felony or misdemeanor
conviction.
(b) The board may withhold payment of a member's contributions
and interest if the employer of the member notifies the board that
felony or misdemeanor charges accusing the member of the criminal
taking of the employer's property have been filed.
(c) The board may withhold payment of a member's contributions
and interest under subsection (b) until the final resolution of the
criminal charges.
(d) Notwithstanding any other provision of this chapter, any
payment made to a member from the fund is subject to withholding
in accordance with applicable law to enforce the member's legal
obligation to provide child support.
SOURCE: IC 10-12-2-10; (04)HB1068.1.4. -->
SECTION 4. IC 10-12-2-10, AS ADDED BY P.L.2-2003,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 10. (a) A person entitled to, having an interest in,
or sharing a pension or benefit from the trust funds does not, before the
actual payment of the pension or benefit, have the right to anticipate,
sell, assign, pledge, mortgage, or otherwise dispose of or encumber the
pension or benefit.
(b)
Except as provided in subsection (d), a person's interest, share,
pension, or benefit, before the actual payment of the interest, share,
pension, or benefit, may not be:
(1) used to satisfy the debts or liabilities of the person entitled to
the interest, share, pension, or benefit;
(2) subject to attachment, garnishment, execution, or levy or sale
on judicial proceedings; or
(3) transferred by any means, voluntarily or involuntarily.
(c) The trustee may pay from the trust fund the amounts that the
trustee determines are proper and necessary expenses of the trust fund.
(d) Notwithstanding any other provision of this chapter, any
payment made to an employee beneficiary from the trust fund is
subject to withholding in accordance with applicable law to enforce
the employee beneficiary's legal obligation to provide child
support.
SOURCE: IC 21-6.1-5-17; (04)HB1068.1.5. -->
SECTION 5. IC 21-6.1-5-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 17. Benefits Exempted
from Legal Process; Assignment of Benefits. (a) Except as provided
in subsection (c), the benefits payable from the fund are exempt from
seizure or levy on attachment, supplemental process, and all other
processes.
(b) A member may not transfer any benefit payment; such a transfer
is void. However, a member may assign benefits for paying:
(1) premiums on a group, life, hospitalization, surgical or medical
insurance plan maintained in whole or in part by a state agency;
and
(2) dues to any association which proves to the board's
satisfaction that the association has as members at least twenty
percent (20%) of the number of retired members of the fund.
(c) Notwithstanding any other provision of this chapter, any
payment made to a member from the fund is subject to withholding
in accordance with applicable law to enforce the member's legal
obligation to provide child support.
SOURCE: IC 36-8-6-14; (04)HB1068.1.6. -->
SECTION 6. IC 36-8-6-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. (a) If there is not
sufficient money to the credit of the 1925 fund to pay all claims against
it in full, claims arising from the death of members of the department
shall be paid in full first with as little delay as possible, after which an
equal percentage shall be paid upon all other claims to the full extent
of the money on hand, until the fund is replenished.
(b) All pensions shall be paid by the treasurer of the local board at
his office at the same time and in the same installments as the members
of the police department are paid.
(c)
Except as provided in subsection (d), all pensions payable out
of the 1925 fund are exempt from seizure or levy upon attachment,
execution, supplemental process, and all other process, whether mesne
or final. Except as provided in section 21 of this chapter, pensions are
not subject to sale, assignment, or transfer by a beneficiary.
(d) Notwithstanding any other provision of this chapter, any
payment made to a member from the 1925 fund is subject to
withholding in accordance with applicable law to enforce the
member's legal obligation to provide child support.
SOURCE: IC 36-8-7-22; (04)HB1068.1.7. -->
SECTION 7. IC 36-8-7-22, AS AMENDED BY P.L.90-2002,
SECTION 489, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 22. (a) Except as provided in
subsection (b), the 1937 fund may not be, either before or after an
order for distribution to members of the fire department or to the
surviving spouses or guardians of a child or children of a deceased,
disabled, or retired member, held, seized, taken, subjected to, detained,
or levied on by virtue of an attachment, execution, judgment, writ,
interlocutory or other order, decree, or process, or proceedings of any
nature issued out of or by a court in any state for the payment or
satisfaction, in whole or in part, of a debt, damages, demand, claim,
judgment, fine, or amercement of the member or the member's
surviving spouse or children. The 1937 fund shall be kept and
distributed only for the purpose of pensioning the persons named in
this chapter. The local board may, however, annually expend an
amount from the 1937 fund that it considers proper for the necessary
expenses connected with the fund. Notwithstanding any other law,
neither the fiscal body, the county board of tax adjustment, nor the
department of local government finance may reduce these
expenditures.
(b) Notwithstanding any other provision of this chapter, any
payment made to a member from the 1937 fund is subject to
withholding in accordance with applicable law to enforce the
member's legal obligation to provide child support.
SOURCE: IC 36-8-7.5-19; (04)HB1068.1.8. -->
SECTION 8. IC 36-8-7.5-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19. (a) Except as
provided in subsection (b), all pensions, annuities, and benefits
payable out of the 1953 fund are exempt from seizure or levy upon
attachment, garnishment, execution, and all other process. Except as
provided in section 23 of this chapter, pensions, annuities, and
benefits are not subject to sale, assignment, or transfer by a beneficiary.
(b) Notwithstanding any other provision of this chapter, any
payment made to a member from the 1953 fund is subject to
withholding in accordance with applicable law to enforce the
member's legal obligation to provide child support.
SOURCE: IC 36-8-8-17; (04)HB1068.1.9. -->
SECTION 9. IC 36-8-8-17, AS AMENDED BY P.L.183-2003,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 17. (a) Except as provided in subsection (d), the
benefits of this chapter are exempt from attachment and garnishment
and may not be seized, taken, or levied upon by any execution or
process.
(b) Except as provided in subsection (c) and section 17.2 of this
chapter, a person receiving a benefit under this chapter may not
transfer, assign, or sell the benefit.
(c) Notwithstanding any other provision of this chapter, to the extent
required by Internal Revenue Code Section 401(a)(31), as added by the
Unemployment Compensation Amendments of 1992 (P.L.102-318),
and any amendments and regulations related to Section 401(a)(31), the
1977 fund shall allow participants and qualified beneficiaries to elect
a direct rollover of eligible distributions to another eligible retirement
plan.
(d) Notwithstanding any other provision of this chapter, any
payment made to a member from the 1977 fund is subject to
withholding in accordance with applicable law to enforce the
member's legal obligation to provide child support.
SOURCE: IC 36-8-10-19; (04)HB1068.1.10. -->
SECTION 10. IC 36-8-10-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19. (a) A person
entitled to a an interest in or share of a pension or benefit from the trust
funds may not, before the actual payment, anticipate it or sell, assign,
pledge, mortgage, or otherwise dispose of or encumber it. In addition,
except as provided in subsection (b), the interest, share, pension, or
benefit is not, before the actual payment, liable for the debts or
liabilities of the person entitled to it, nor is it subject to attachment,
garnishment, execution, levy, or sale on judicial proceedings, or
transferable, voluntarily or involuntarily. The trustee may expend the
sums from the fund that it considers proper for necessary expenses.
(b) Notwithstanding any other provision of this chapter, any
payment made to an employee beneficiary from the fund is subject
to withholding in accordance with applicable law to enforce the
member's legal obligation to provide child support.
SOURCE: ; (04)HB1068.1.11. -->
SECTION 11. [EFFECTIVE JULY 1, 2004]
IC 2-3.5-4-11,
IC 2-3.5-5-9, IC 5-10.3-8-9, IC 10-12-2-10, IC 21-6.1-5-17,
IC 36-8-6-14, IC 36-8-7-22, IC 36-8-7.5-19, IC 36-8-8-17, and
IC 36-8-10-19, all as amended by this act, apply to legal obligations
to provide child support enforceable before, on, or after July 1,
2004.