Indiana § 36-8-8-17 - Benefits exempt from judicial process; reimbursement of employers; withholding payments; transfer prohibited; rollover to eligible retirement plan

§ 36-8-8-17. Benefits exempt from judicial process; reimbursement of employers; withholding payments; transfer prohibited; rollover to eligible retirement plan

Sec. 17. (a) 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. However, a fund member's contributions or benefits, or both, may be transferred to reimburse the fund member's employer for loss resulting from the fund member's criminal taking of the employer's property by the system board if the system board receives adequate proof of the loss. The loss resulting from the fund member's criminal taking of the employer's property must be proven by an order for restitution in favor of the employer issued by the sentencing court following a felony or misdemeanor conviction.

(b) The system board may withhold payment of a fund member's contributions and interest if the employer of the fund member notifies the board that felony or misdemeanor charges accusing the participant of the criminal taking of the employer's property have been filed.

(c) The system board may withhold payment of a fund member's contributions and interest under subsection (b) until the final resolution of the criminal charges.

(d) Subsections (b) and (c) do not apply to the:

(1) retirement benefit of a retired fund member; or

(2) disability benefit of a fund member who becomes disabled.

(e) Except as provided in subsection (f) and section 17.2 of this chapter, a person receiving a benefit under this chapter may not transfer, assign, or sell the benefit.

(f) 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.

[Pre-Local Government Recodification Citations: 19-1-17.8-15; 19-1-36.5-15.]

As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.10-1993, SEC.19; P.L.183-2003, SEC.2; P.L.203-2019, SEC.10.