§ 24-7-715 — Benefit rights not subject to legal process - Definition

Arkansas § 24-7-715

• Jurisdiction: Arkansas
• Title: 24

Text

(a) As used in this section, "pension assignee" means an individual or entity that is not a designated beneficiary and: (1) Is assigned some or all of a benefit participant's pension benefits by the benefit participant; or (2) Claims an interest in, or control over, a benefit participant's plan benefit or an account to which a benefit participant's plan benefit is deposited. (b) (1) Except as provided in subsection (e) of this section, a benefit participant's right to an annuity, to the return of accumulated contributions, to the annuity itself, to any annuity option, to a plan benefit, and to any other right accrued or accruing under the provisions of this act, and all moneys belonging to the Arkansas Teacher Retirement System, shall not be: (A) Subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or any other legal or equitable process; or (B) Assignable or transferable. (2) An employer shall have the right of setoff for any claim arising from embezzlement by, or fraud of, a benefit participant. (3) This subsection does not prevent the right of the system to: (A) Correct errors under § 24-7-205 in any manner provided by law; or (B) Collect any moneys due from or related to a member account associated with a benefit participant. (4) This subsection does not apply to the rollover of distributions as allowed under § 24-7-719 . (c) If an inactive member is found by any court of competent jurisdiction of this state to be willfully refusing or failing to support minor dependent children of the individual in violation of a court order providing for such support, although the individual is financially able to do so, then the court may order the accumulated contributions, annuity or annuity options, or any other funds accruing under this chapter to be paid into the registry of the court for such further disposition as the court deems just and proper. (d) (1) If, under the provisions of subsection (c) of this section, a court orders all, or a portion of, a person's accumulated contributions to be paid into the registry of the court, the payment shall be made by the system to the court. (2) The system shall notify the person of the payment and give the person an opportunity to redeposit the amount of the payment into the system. (3) If the payment is not redeposited, then any system annuity otherwise payable to, or on behalf of, the person shall be reduced in the proportion that the payment bears to the person's accumulated contributions before the payment. (e) (1) A pension assignee shall not use any device, transfer, or other related scheme to circumvent the prohibition against the assignment or transfer of a plan benefit. (2) A device, transfer, or other related scheme under subdivision (e)(1) of this section includes without limitation: (A) The deposit of a plan benefit into a joint account held by a benefit recipient and a pension assignee; and (B) A pension assignee's authorization under a power of attorney or other instrument to access, or obtain funds from, an account to which plan benefits are deposited.

Legislative History

Amended by Act 2017, No. 293,§ 7, eff. 2/28/2017. Amended by Act 2017, No. 199,§ 1, eff. 2/17/2017. Acts 1973, No. 427, § 9; 1977, No. 727, § 1; 1983, No. 619, § 11; 1983, No. 665, § 11; A.S.A. 1947, § 80-1443.