H-2081.1  _______________________________________________

                          HOUSE BILL 2055

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives L. Thomas and Robertson

Read first time 02/27/95.  Referred to Committee on Appropriations.

Allowing courts to order the department of retirement systems to pay benefits to a judgment creditor in specific circumstances.

    AN ACT Relating to judgments on retirement accounts; reenacting and amending RCW 41.32.052; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 41.32.052 and 1991 c 365 s 21 and 1991 c 35 s 63 are each reenacted and amended to read as follows:

    (1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, a retirement allowance, or disability allowance, to the return of contributions, any optional benefit or death benefit, any other right accrued or accruing to any person under the provisions of this chapter and the moneys in the various funds created by this chapter shall be unassignable, and are hereby exempt from any state, county, municipal or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever.

    (2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance who is eligible:

    (a) Under RCW 41.05.080 from authorizing monthly deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions;

    (b) Under a group health care benefit plan approved pursuant to RCW 28A.400.350 or 41.05.065 from authorizing monthly deductions therefrom, of the amount or amounts of subscription payments, premiums, or contributions to any person, firm, or corporation furnishing or providing medical, surgical, and hospital care or other health care insurance; or

    (c) Under this system from authorizing monthly deductions therefrom for payment of dues and other membership fees to any retirement association composed of retired teachers and/or public employees pursuant to a written agreement between the director and the retirement association.

    Deductions under (a) and (b) of this subsection shall be made in accordance with rules that may be adopted by the director.

    (3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, (f) a court order directing the department of retirement systems to pay benefits directly to a judgment creditor on a claim arising out of criminal acts, intentional wrongs, or willful misconduct by a beneficiary of a retirement allowance, or (((f))) (g) any administrative or court order expressly authorized by federal law.

NEW SECTION. Sec. 2.  This act applies to all judgments in effect on or after the effective date of this act, regardless of when the judgment may have been entered.  To this extent, this act applies retroactively, but in all other respects it applies prospectively.

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