SB 719 - Retirement & Pensions - quali- fied domestic relations orders

Georgia Senate - 1995/1996 Sessions

SB 719 - Retirement & Pensions - quali- fied domestic relations orders

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11
Code Sections - 47-1-60/ 47-1-61/ 47-1-62/ 47-1-63/ 47-4-120/ 47-5-71/ 47-6-100/ 47-7-122/ 47-10-120/ 47-11-91/ 47-12-101/ 47-13-90/ 47-14-91/ 47-16-122/ 47-17-103
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1. Starr  44th

Senate Comm: Ret / House Comm: / Senate Vote: Yeas Nays --------------------------------------------- Senate Action House --------------------------------------------- 2/12/96 Read 1st time --------------------------------------------- Code Sections amended: 47-1-60, 47-1-61, 47-1-62, 47-1-63, 47-2-332, 47-3-28, 47-4-120, 47-5-71, 47-6-100, 47-7-122, 47-9-91, 47-10-120, 47-11-91, 47-12-101, 47-13-90, 47-14-91, 47-16-122, 47-17-103
SB 719 LC 26 0048 A BILL TO BE ENTITLED AN ACT 1- 1 To amend Title 47 of the Official Code of Georgia Annotated, 1- 2 relating to retirement and pensions, so as to provide for 1- 3 qualified domestic relations orders; to provide for 1- 4 definitions; to provide requirements for domestic relations 1- 5 orders to be qualified domestic relations orders; to provide 1- 6 that benefits under public retirement systems shall be 1- 7 subject to the terms of qualified domestic relations orders; 1- 8 to provide that a former spouse shall be treated as a 1- 9 surviving spouse to the extent provided for in a qualified 1-10 domestic relations order; to provide procedures for 1-11 determining whether a domestic relations order is a 1-12 qualified domestic relations order and to provide certain 1-13 requirements pending such determination; to amend the laws 1-14 relative to specific retirement or pension systems or funds 1-15 to provide an exception in the case of a qualified domestic 1-16 relations order and in the case of a continuing garnishment 1-17 for support from the provisions of said retirement or 1-18 pension systems or funds prohibiting retirement or pension 1-19 benefits from being subject to assignment, garnishment, 1-20 levy, sale, attachment, and other legal process; to provide 1-21 for other matters relative to the foregoing; to provide an 1-22 effective date; to repeal conflicting laws; and for other 1-23 purposes. 1-24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 1-25 Title 47 of the Official Code of Georgia Annotated, relating 1-26 to retirement and pensions, is amended by adding at the end 1-27 of Chapter 1, relating to general provisions applicable to 1-28 public retirement systems, a new Article 5 to read as 1-29 follows: "ARTICLE 5 1-30 47-1-60. (Index) 1-31 As used in this article, the term: -1- (Index) LC 26 0048 2- 1 (1) 'Alternate payee' means any spouse, former spouse, 2- 2 child, or other dependent of a member of a public 2- 3 retirement system who is recognized by a domestic 2- 4 relations order as having a right to receive all or a 2- 5 portion of the benefits payable under a public 2- 6 retirement system with respect to such member. 2- 7 (2) 'Domestic relations order' means any judgment, 2- 8 decree, or order, including approval of a property 2- 9 settlement agreement, which: 2-10 (A) Relates to the provision of child support, alimony 2-11 payments, or marital property rights to a spouse, 2-12 former spouse, child, or other dependent of a member 2-13 of a public retirement system; and 2-14 (B) Is made pursuant to a state domestic relations 2-15 law, including a community property law. 2-16 (3) 'Earliest retirement age' means the age of a member 2-17 on the earliest date on which the member could begin 2-18 receiving benefits under a public retirement system if 2-19 the member separated from service. 2-20 (4) 'Member' means any public employee who is a member 2-21 of a public retirement system. 2-22 (5) 'Public employee' means any official or employee of 2-23 the state or any branch, department, board, bureau, 2-24 commission, or other agency of the state; any official 2-25 or employee of any public authority of the state; any 2-26 official or employee of any county, municipality, school 2-27 district, or other political subdivision of the state; 2-28 and any official or employee of any public authority of 2-29 any political subdivision of the state. 2-30 (6) 'Public retirement system' means any retirement or 2-31 pension system, program, or fund created by or pursuant 2-32 to the authority of law for the purpose of paying 2-33 benefits to public employees or their beneficiaries 2-34 after such employees cease active employment by 2-35 retirement, disability, death, or other termination, and 2-36 the term includes any plan or program which creates a 2-37 retired position, commonly referred to as 'emeritus,' 2-38 and provides a salary for the retired position in lieu 2-39 of a retirement benefit. 2-40 (7) 'Qualified domestic relations order' means a 2-41 domestic relations order which creates or recognizes the 2-42 existence of an alternate payee's right to, or assigns -2- (Index) LC 26 0048 3- 1 to an alternate payee the right to, receive all or a 3- 2 portion of the benefits payable under a public 3- 3 retirement system with respect to a member and which 3- 4 meets the requirements of Code Section 47-1-61. 3- 5 47-1-61. (Index) 3- 6 (a) A domestic relations order is a qualified domestic 3- 7 relations order only if the order clearly specifies the 3- 8 following: 3- 9 (1) The name and last known mailing address, if any, of 3-10 the member and the name and mailing address of each 3-11 alternate payee covered by the order; 3-12 (2) The amount or percentage of the member's benefits to 3-13 be paid by the public retirement system to each 3-14 alternate payee or the manner in which such amount or 3-15 percentage is to be determined; and 3-16 (3) Each public retirement system to which such order 3-17 applies. 3-18 (b) A domestic relations order is a qualified domestic 3-19 relations order only if such order: 3-20 (1) Does not require a public retirement system to 3-21 provide any type or form of benefit, or any option, not 3-22 otherwise provided under the public retirement system; 3-23 (2) Does not require the payment of benefits to an 3-24 alternate payee before a member has retired or otherwise 3-25 separated from service and attained earliest retirement 3-26 age; 3-27 (3) Does not require the public retirement system to 3-28 provide increased benefits, determined on the basis of 3-29 actuarial value; and 3-30 (4) Does not require the payment of benefits to an 3-31 alternate payee which are required to be paid to another 3-32 alternate payee under another domestic relations order 3-33 previously determined to be a qualified domestic 3-34 relations order. 3-35 47-1-62. (Index) 3-36 (a) A pension, annuity, retirement allowance, return of 3-37 contributions, or other benefit payable under a public 3-38 retirement system shall be subject to the terms of a 3-39 qualified domestic relations order, notwithstanding any 3-40 exemption from levy, sale, garnishment, and other legal -3- (Index) LC 26 0048 4- 1 process or any restriction on assignment of benefits 4- 2 contained in any public retirement system. 4- 3 (b) To the extent provided in any qualified domestic 4- 4 relations order, the former spouse of a member shall be 4- 5 treated as the surviving spouse of the member. 4- 6 47-1-63. (Index) 4- 7 (a) When a domestic relations order is received by a 4- 8 public retirement system, the system shall promptly notify 4- 9 the member and each alternate payee of the receipt of such 4-10 order and within a reasonable period after receipt of such 4-11 order, the system shall determine whether such order is a 4-12 qualified domestic relations order and notify the member 4-13 and each alternate payee of such determination. 4-14 (b) During any period in which the issue of whether a 4-15 domestic relations order is a qualified domestic relations 4-16 order is being determined by a public retirement system or 4-17 by a court of competent jurisdiction or otherwise, the 4-18 public retirement system shall separately account for the 4-19 amounts which would have been paid to the alternate payee 4-20 during such period if the order had been determined to be 4-21 a qualified domestic relations order. 4-22 (c) If within an 18 month period beginning with the date 4-23 on which the first payment would be required to be made 4-24 under a domestic relations order, or a modification 4-25 thereof, the order is determined to be a qualified 4-26 domestic relations order, the public retirement system 4-27 shall pay the amounts separately accounted for pursuant to 4-28 the provisions of subsection (b) of this Code section, 4-29 plus regular interest thereon, to the person or persons 4-30 entitled thereto. 4-31 (d) If within the 18 month period described in subsection 4-32 (c) of this Code section it is determined that the order 4-33 is not a qualified domestic relations order of if the 4-34 issue as to whether the order is a qualified domestic 4-35 relations order is not resolved within such period, then 4-36 the public retirement system shall pay the amounts 4-37 separately accounted for pursuant to the provisions of 4-38 subsection (b) of this Code section, plus regular interest 4-39 thereon, to the person or persons who would have been 4-40 entitled to such amounts if there had been no order. 4-41 (e) Any determination that a domestic relations order is a 4-42 qualified domestic relations order which is made after the -4- (Index) LC 26 0048 5- 1 expiration of the period described in subsection (c) of 5- 2 this Code section shall be applied prospectively only." SECTION 2. 5- 3 Said title is further amended by striking subsection (a) of 5- 4 Code Section 47-2-332, relating to exemption of rights and 5- 5 benefits under the Employees' Retirement System of Georgia 5- 6 from garnishment and other legal process and from state and 5- 7 local taxation, in its entirety and substituting in lieu 5- 8 thereof a new subsection (a) to read as follows: 5- 9 "(a) Except as otherwise provided in Article 5 of Chapter 5-10 1 of this title and in Article 7 of Chapter 4 of Title 18, 5-11 the The right to a pension, annuity, retirement allowance, 5-12 return of contributions, the pension, annuity, or 5-13 retirement allowance itself, any optional benefit, or any 5-14 other right accrued or accruing to any person under this 5-15 chapter and the moneys in the various accounts created by 5-16 this chapter are: 5-17 (1) Exempt from any state, county, or municipal tax; 5-18 (2) Exempt from levy and sale, garnishment, attachment, 5-19 or any other process whatsoever; and 5-20 (3) Not assignable except as otherwise specifically 5-21 provided in this chapter." SECTION 3. 5-22 Said title is further amended by striking subsection (a) of 5-23 Code Section 47-3-28, relating to exemption of rights and 5-24 benefits under the Teachers Retirement System of Georgia 5-25 from garnishment and other legal process and from state and 5-26 local taxation, in its entirety and substituting in lieu 5-27 thereof a new subsection (a) to read as follows: 5-28 "(a) Except as otherwise provided in Article 5 of Chapter 5-29 1 of this title and in Article 7 of Chapter 4 of Title 18, 5-30 the The right to a pension, annuity, retirement allowance, 5-31 return of contributions, the pension, annuity, or 5-32 retirement allowance itself, any optional benefit, or any 5-33 other right accrued or accruing to any person under this 5-34 chapter and the moneys in the various accounts created by 5-35 this chapter are exempt from any state, county, or 5-36 municipal tax; exempt from levy and sale, garnishment, 5-37 attachment, or any other process whatsoever; and shall not 5-38 be assignable except as otherwise specifically provided in 5-39 this chapter. The exemptions under this Code section -5- (Index) LC 26 0048 6- 1 shall extend to benefits accrued or accruing to any member 6- 2 of a local retirement system, whether such benefits are 6- 3 attributable to amounts paid by the retirement system to 6- 4 such local retirement system for the account and benefit 6- 5 of the member, or otherwise." SECTION 4. 6- 6 Said title is further amended by striking Code Section 6- 7 47-4-120, relating to exemption of rights and benefits under 6- 8 the Public School Employees Retirement System from 6- 9 garnishment and other legal process and from state and local 6-10 taxation, in its entirety and substituting in lieu thereof a 6-11 new Code Section 47-4-120 to read as follows: 6-12 "47-4-120. (Index) 6-13 Except as otherwise provided in Article 5 of Chapter 1 of 6-14 this title and in Article 7 of Chapter 4 of Title 18, the 6-15 The right to a retirement benefit, return of 6-16 contributions, any optional benefit, or any other right 6-17 accrued or accruing to any person under this chapter shall 6-18 be exempt from any state, county, or municipal tax; exempt 6-19 from levy and sale, garnishment, attachment, or any other 6-20 process whatsoever; and unassignable, except as otherwise 6-21 specifically provided for in this chapter." SECTION 5. 6-22 Said title is further amended by striking Code Section 6-23 47-5-71, relating to exemption from legal process and 6-24 nonassignability of benefits under the Joint Municipal 6-25 Employees Benefit System, in its entirety and substituting 6-26 in lieu thereof a new Code Section 47-5-71 to read as 6-27 follows: 6-28 "47-5-71. (Index) 6-29 Except as otherwise provided in Article 5 of Chapter 1 of 6-30 this title and in Article 7 of Chapter 4 of Title 18, 6-31 funds Funds held by the board of trustees or for its 6-32 account shall not be subject to process, levy, or 6-33 attachment; nor shall and benefits arising under this 6-34 chapter or any contract pursuant to this chapter shall not 6-35 be assignable." SECTION 6. 6-36 Said title is further amended by striking Code Section 6-37 47-6-100, relating to the exemption of rights and benefits 6-38 under the Georgia Legislative Retirement System from -6- (Index) LC 26 0048 7- 1 garnishment and other legal process and from state and local 7- 2 taxation, in its entirety and substituting in lieu thereof a 7- 3 new Code Section 47-6-100 to read as follows: 7- 4 "47-6-100. (Index) 7- 5 Except as otherwise provided in Article 5 of Chapter 1 of 7- 6 this title and in Article 7 of Chapter 4 of Title 18, the 7- 7 The right of a person to a retirement allowance or to the 7- 8 return of contributions, a retirement allowance itself, 7- 9 any optional allowance or payment on death, or any other 7-10 right accrued or accruing to any person under this chapter 7-11 and the moneys of the system are exempted from any state 7-12 or municipal tax; are exempted from levy and sale, 7-13 garnishment, attachment, or any other process whatsoever; 7-14 and shall be unassignable except as otherwise specifically 7-15 provided for in this chapter." SECTION 7. 7-16 Said title is further amended by striking Code Section 7-17 47-7-122, relating to exemption of rights and benefits under 7-18 the Georgia Firemen's Pension Fund from garnishment and 7-19 other legal process and from state and local taxation, in 7-20 its entirety and substituting in lieu thereof a new Code 7-21 Section 47-7-122 to read as follows: 7-22 "47-7-122. (Index) 7-23 Except as otherwise provided in Article 5 of Chapter 1 of 7-24 this title and in Article 7 of Chapter 4 of Title 18, 7-25 benefits Benefits under this chapter shall not be subject 7-26 to attachment, garnishment, levy, or other legal process 7-27 against the fireman, volunteer fireman, or a designated 7-28 beneficiary entitled to receive such benefits; nor shall 7-29 and such benefits or rights shall not be assignable unless 7-30 specifically provided for in this chapter. Benefits under 7-31 this chapter are expressly declared to be exempt from any 7-32 and all taxation, whether imposed by any state, county, 7-33 municipality, or other political subdivision." SECTION 8. 7-34 Said title is further amended by striking subsection (a) of 7-35 Code Section 47-9-91, relating to exemption of rights and 7-36 benefits under the Superior Court Judges Retirement System 7-37 from garnishment and other legal process and from state and 7-38 local taxation, in its entirety and substituting in lieu 7-39 thereof a new subsection (a) to read as follows: -7- (Index) LC 26 0048 8- 1 "(a) Except as otherwise provided in Article 5 of Chapter 8- 2 1 of this title, in Article 7 of Chapter 4 of Title 18, 8- 3 and in subsection (b) of this Code section, the right to a 8- 4 retirement benefit, the return of contributions, any 8- 5 optional benefit, or any other right accrued or accruing 8- 6 to any person under this chapter and the moneys in the 8- 7 fund created by this chapter are exempt from any state, 8- 8 county, or municipal tax; exempt from levy and sale, 8- 9 garnishment, attachment, or any other process whatsoever; 8-10 and shall not be assignable, except as otherwise 8-11 specifically provided in this chapter." SECTION 9. 8-12 Said title is further amended by striking Code Section 8-13 47-10-120, relating to exemption of rights and benefits 8-14 under the Trial Judges and Solicitors Retirement Fund from 8-15 garnishment and other legal process and from state and local 8-16 taxation, in its entirety and substituting in lieu thereof a 8-17 new Code Section 47-10-120 to read as follows: 8-18 "47-10-120. (Index) 8-19 Except as otherwise provided in Article 5 of Chapter 1 of 8-20 this title and in Article 7 of Chapter 4 of Title 18, the 8-21 The right to a retirement benefit, to the return of 8-22 contributions, to any optional benefit, or to any other 8-23 right accrued or accruing to any person under this chapter 8-24 and the moneys in the fund are exempt from any state, 8-25 county, or municipal tax; exempt from levy and sale, 8-26 garnishment, attachment, or any other process whatsoever; 8-27 and are nonassignable, except as otherwise specifically 8-28 provided in this chapter." SECTION 10. 8-29 Said title is further amended by striking Code Section 8-30 47-11-91, relating to exemption of rights and benefits under 8-31 the Judges of the Probate Courts Retirement Fund of Georgia 8-32 from garnishment and other legal process, in its entirety 8-33 and substituting in lieu thereof a new Code Section 47-11-91 8-34 to read as follows: 8-35 "47-11-91. (Index) 8-36 Except as otherwise provided in Article 5 of Chapter 1 of 8-37 this title and in Article 7 of Chapter 4 of Title 18, none 8-38 None of the funds or benefits provided for in this chapter 8-39 shall be subject to attachment, garnishment, or judgment -8- (Index) LC 26 0048 9- 1 rendered against the person entitled to receive the same. 9- 2 Such and such funds or benefits shall not be assignable." SECTION 11. 9- 3 Said title is further amended by striking Code Section 9- 4 47-12-101, relating to exemption of emeritus salary and 9- 5 other benefits under the District Attorneys Emeritus and 9- 6 District Attorneys Retirement Fund of Georgia from 9- 7 garnishment and other legal process and from state and local 9- 8 taxes, in its entirety and substituting in lieu thereof a 9- 9 new Code Section 47-12-101 to read as follows: 9-10 "47-12-101. (Index) 9-11 Except as otherwise provided in Article 5 of Chapter 1 of 9-12 this title and in Article 7 of Chapter 4 of Title 18, the 9-13 The right to a retirement benefit, district attorney 9-14 emeritus salary, return of contributions, any optional 9-15 benefit, or any other right accrued or accruing to any 9-16 person under this chapter and the moneys in the fund are 9-17 exempt from any state, county, or municipal tax; exempt 9-18 from levy and sale, garnishment, attachment, or any other 9-19 process whatsoever; and shall not be assignable, except as 9-20 otherwise specifically provided for in this chapter." SECTION 12. 9-21 Said title is further amended by striking Code Section 9-22 47-13-90, relating to exemption of rights and benefits under 9-23 the District Attorneys' Retirement System from garnishment 9-24 and other legal process and from state and local taxes, in 9-25 its entirety and substituting in lieu thereof a new Code 9-26 Section 47-13-90 to read as follows: 9-27 "47-13-90. (Index) 9-28 Except as otherwise provided in Article 5 of Chapter 1 of 9-29 this title and in Article 7 of Chapter 4 of Title 18, the 9-30 The right to a retirement benefit, return of 9-31 contributions, any optional benefit, or any other right 9-32 accrued or accruing to any person under this chapter and 9-33 the moneys in the fund are exempt from any state, county, 9-34 or municipal tax; exempt from levy and sale, garnishment, 9-35 attachment, or any other process whatsoever; and shall not 9-36 be assignable, except as otherwise specifically provided 9-37 for in this chapter." -9- (Index) LC 26 0048 SECTION 13. 10- 1 Said title is further amended by striking Code Section 10- 2 47-14-91, relating to exemption of rights and benefits under 10- 3 the Superior Court Clerks' Retirement Fund of Georgia from 10- 4 garnishment and other legal process and from state and local 10- 5 taxation, in its entirety and substituting in lieu thereof a 10- 6 new Code Section 47-14-91 to read as follows: 10- 7 "47-14-91. (Index) 10- 8 Except as otherwise provided in Article 5 of Chapter 1 of 10- 9 this title and in Article 7 of Chapter 4 of Title 18, the 10-10 The right to any pension, allowance, or benefit; the right 10-11 to the return of contributions; any optional benefit; or 10-12 any other right accrued or accruing to any person under 10-13 this chapter; and moneys under this chapter shall be 10-14 exempt from any tax imposed by any state, county, 10-15 municipal, or other political subdivision and shall be 10-16 exempt from levy and sale, garnishment, attachment, or any 10-17 other process. Such and such funds and benefits shall not 10-18 be assignable." SECTION 14. 10-19 Said title is further amended by striking Code Section 10-20 47-16-122, relating to exemption of rights and benefits 10-21 under the Sheriffs' Retirement Fund of Georgia from 10-22 garnishment and other legal process, in its entirety and 10-23 substituting in lieu thereof a new Code Section 47-16-122 to 10-24 read as follows: 10-25 "47-16-122. (Index) 10-26 Except as otherwise provided in Article 5 of Chapter 1 of 10-27 this title and in Article 7 of Chapter 4 of Title 18, none 10-28 None of the funds or benefits under this chapter shall be 10-29 subject to attachment, garnishment, or judgments rendered 10-30 against the person entitled to receive such funds. Such or 10-31 benefits and such funds or benefits shall not be 10-32 assignable, but shall be paid to the person determined to 10-33 be entitled to receive them under this chapter." SECTION 15. 10-34 Said title is further amended by striking Code Section 10-35 47-17-103, relating to exemption of rights and benefits 10-36 under the Peace Officers' Annuity and Benefit Fund from 10-37 garnishment and other legal process and from state and local -10- (Index) LC 26 0048 11- 1 taxation, in its entirety and substituting in lieu thereof a 11- 2 new Code Section 47-17-103 to read as follows: 11- 3 "47-17-103. (Index) 11- 4 Except as otherwise provided in Article 5 of Chapter 1 of 11- 5 this title and in Article 7 of Chapter 4 of Title 18, the 11- 6 The right to any pension, annuity, allowance, or benefit; 11- 7 to the return of contributions; to a pension, annuity, 11- 8 allowance or benefit itself; to any optional benefit, or 11- 9 any other right accrued or accruing to any person under 11-10 this chapter; and to moneys under this chapter shall be 11-11 exempt from any tax imposed by this state, county, 11-12 municipal, or other political subdivision; exempt from 11-13 levy and sale, garnishment, attachment, or any other 11-14 process whatsoever; and shall be unassignable unless 11-15 otherwise specifically provided for in this chapter." SECTION 16. 11-16 This Act shall become effective on July 1, 1996. SECTION 17. 11-17 All laws and parts of laws in conflict with this Act are 11-18 repealed. -11-k -11- (Index)

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