SENATE BILL REPORT

SB 6448

BYSenator Anderson

Changing provisions relating to attachments of pensions.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 16, 1990

Senate Staff:Vicki E. Schur (786-7415)

AS OF JANUARY 12, 1990

BACKGROUND:

In 1987, the Legislature exempted retirement benefits, such as IRAs, Keoghs, and annuities, from legal attachment or seizure, both inside and outside bankruptcy.  In 1988, the United States Supreme Court held that a similar exemption in a George statute was preempted by ERISA due to its express reference to ERISA.

SUMMARY:

Retirement plans not subject to ERISA are exempted from execution, attachment, garnishment or seizure.  These plans are also deemed spendthrift trusts which exclude benefits from an individual's estate.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested