Tennessee § 26-2-105 - State pension moneys, certain retirement plan funds or assets, exempt — Claims under qualified domestic relations order.

§ 26-2-105. State pension moneys, certain retirement plan funds or assets, exempt — Claims under qualified domestic relations order.

All moneys received as pension from the state or a political subdivision as defined in § 4-58-102, before receipt, or while in the recipient's hands or upon deposit in the bank, shall be exempt from execution, attachment or garnishment other than an order for assignment of support issued under § 36-5-501 or a qualified domestic relations order as provided in subsection (c), whether such pensioner is the head of a family or not. Except as provided in subsection (c), any funds or other assets payable to a participant or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan which is qualified under §§ 401(a), 403(a), 403(b), 408 and 408A, or an Archer medical savings account qualified under § 220 or a health savings account qualified under § 223 of the Internal Revenue Code of 1986, as amended, are exempt from any and all claims of creditors of the participant or beneficiary, except the state. All records of the debtor concerning such plan and of the plan concerning the debtor's participation in the plan, or interest in the plan, are exempt from the subpoena process. Any plan or arrangement described in subsection (b), is not exempt from the claims of an alternate payee under a qualified domestic relations order. However, the interest of any and all alternate payees under a qualified domestic relations order are exempt from any and all claims of any creditor, other than the state. As used in this subsection (c), “alternate payee” and “qualified domestic relations order” have the meaning ascribed to them in § 414(p) of the Internal Revenue Code of 1986, as amended. Notwithstanding this subsection (c) to the contrary, an optional retirement program established pursuant to title 8, chapter 25, part 2 shall honor claims under a qualified domestic relations order that complies with § 8-25-210. Acts 1978, ch. 915, § 7; T.C.A., § 26-206; Acts 1986, ch. 890, § 8; 1988, ch. 854, § 1; 1997, ch. 303, § 2, T.C.A., § 26-2-104 ; Acts 2001, ch. 260, § 1; 2005, ch. 204, § 25; 2007, ch. 176, § 1; 2015, ch. 440, § 1; 2016, ch. 931, §§ 1–4; 2016, ch. 962, § 2. Compiler's Notes. Former § 26-2-105 , concerning the definition of “earnings,” “disposable earnings” and “garnishment,” was transferred to § 26-2-102 in 2000. Sections 220, 223, 401(a), 403(a), 403(b), 408, and 408A of the Internal Revenue Code, referred to in this section, are codified at 26 U.S.C. § 220 , 223, 401(a), 403(a), 403(b), 408, and 408A, respectively. Cross-References. Assignment of income by a court for child support, § 50-2-105 . Garnishment at commencement of action, title 29, ch. 7. Public employees' retirement benefits, § 8-36-111 . Vocational rehabilitation benefits exempt, § 49-11-611 . Welfare grants, §§ 71-2-216 , 71-3-121 , 71-4-117 , 71-4-609 , 71-4-1112 . Textbooks. Tennessee Jurisprudence, 3 Tenn. Juris., Attachment and Garnishment, § 151; 4 Tenn. Juris., Bankruptcy, §§ 9, 25, 31; 13 Tenn. Juris., Exemptions From Execution and Attachment, §§ 2, 12; 20 Tenn. Juris., Pensions, § 1. Law Reviews. A Review of Tennessee Exemptions in Light of the Bankruptcy Code (Jennie D. Latta), 28 No. 5 Tenn. B.J. 33 (1992). Enforcing Money Judgments in Tennessee (Lonnie C. Rich), 4 Mem. St. U.L. Rev. 65. Exempt Property in Tennessee under the Bankruptcy Code (Thomas E. Ray), 18 No. 2 Tenn. B.J. 7 (1982). Selection and Removal of Fiduciaries (Robert L. McMurray), 26 No. 3, Tenn. B.J. 22 (1990). Tennessee's Bankruptcy Exemptions are Valid: Rhodes v. Stewart (Bruce D. Fisher), 19-No. 4 Tenn. B.J. 7 (1983). Attorney General Opinions. Constitutionality, OAG 88-161, 1988 Tenn. AG LEXIS 160 (9/1/88). Application of domestic relations orders to benefits under the City of Knoxville Pension Plan, OAG 92-31, 1992 Tenn. AG LEXIS 33 (4/13/92). City utility system, a department of the city, fell within the term “municipality” as formerly used in T.C.A. § 26-2-105(a) , OAG 07-118, 2007 Tenn. AG LEXIS 118 (8/9/09).