AN ACT Relating to the assignment of retirement benefits; amending RCW 41.50.500, 41.50.510, 41.50.530, 41.50.540, 41.50.550, 41.50.560, 41.50.580, 41.50.590, 41.50.600, 41.50.620, 41.50.630, 41.50.650, 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, 43.43.310, 26.09.138, and 6.27.150; and adding new sections to chapter 41.50 RCW.

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

Sec. 1. Section 1, chapter 326, Laws of 1987 and RCW 41.50.500 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 41.50.500 through 41.50.650 and 26.09.138.

(1) "Benefits" means periodic retirement payments or a withdrawal of accumulated contributions.

(2) "Disposable benefits" means that part of the benefits of an individual remaining after the deduction from those benefits of any amount required by law to be withheld. The term "required by law to be withheld" does not include any deduction elective to the member.

(3) "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state.

(4) "Mandatory benefits assignment order" means an order issued to the department of retirement systems pursuant to RCW 41.50.570 to withhold and deliver benefits payable to an obligor under chapter 2.10, 2.12, 41.26, 41.32, 41.40, or 43.43 RCW.

(5) "Obligee" means an ex spouse or spouse to whom a duty of spousal maintenance ((~~or property division obligation~~)) is owed.

(6) "Obligor" means the spouse or ex spouse owing a duty of spousal maintenance ((~~or a property division obligation~~)).

(7) "Periodic retirement payments" means periodic payments of retirement allowances, including but not limited to service retirement allowances, disability retirement allowances, and survivors' allowances. The term does not include a withdrawal of accumulated contributions.

(8) ((~~"Property division obligation" means any outstanding court-ordered property division or court-approved property settlement obligation incident to a decree of divorce, dissolution, or legal separation.~~

~~(9)~~)) "Withdrawal of accumulated contributions" means a lump sum payment to a retirement system member of all or a part of the member's accumulated contributions, including accrued interest, at the request of the member((~~. The term does not include~~)) or any lump sum amount paid upon the death of the member.

Sec. 2. Section 2, chapter 326, Laws of 1987 and RCW 41.50.510 are each amended to read as follows:

(1) The remedies provided in RCW 41.50.530 through 41.50.650 and 26.09.138 are in addition to, and not in substitution for, any other remedies provided by law to enforce a dissolution order against an obligor.

(2) Except for the remedies provided in chapters 26.18 and 74.20A RCW, the remedies provided in RCW 41.50.530 through 41.50.630 shall be the exclusive remedies enforceable against the department of retirement systems or the retirement systems listed in RCW 41.50.030 in connection with any action ((~~or as a result of~~)) to recover spousal maintenance ordered pursuant to a judgment, decree, or order of dissolution, divorce, or legal separation.

(3) RCW 41.50.530 through 41.50.650 and 26.09.138 apply to all dissolution orders incident to a decree of divorce, dissolution, or legal separation whether entered before or after July 1, 1987.

Sec. 3. Section 4, chapter 326, Laws of 1987 and RCW 41.50.530 are each amended to read as follows:

(1) A proceeding to enforce a duty of spousal maintenance ((~~or a property division obligation~~)) by means of a mandatory benefits assignment order may be commenced by an obligee:

(a) By filing a petition for an original action; or

(b) By motion in an existing action or under an existing cause number.

(2) Venue for the action is in the superior court of the county of the state of Washington where the obligee resides or is present, where the obligor resides, or where the prior dissolution order was entered.

(3) The court retains continuing jurisdiction under RCW 41.50.500 through 41.50.650 and 26.09.138 until all duties of spousal maintenance ((~~and all property settlement obligations~~)) of the obligor, including arrearages, with respect to the obligee have been satisfied.

Sec. 4. Section 5, chapter 326, Laws of 1987 and RCW 41.50.540 are each amended to read as follows:

(1) Every court order or decree establishing a spousal maintenance obligation ((~~or property division obligation~~)) may state that if any such payment is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems, the obligee may seek a mandatory benefits assignment order without prior notice to the obligor. Failure to include this provision does not affect the validity of the dissolution order.

(2) If the dissolution order under which the obligor owes the duty of spousal maintenance ((~~or a property division obligation~~)) is not in compliance with subsection (1) of this section or if the obligee cannot show that the obligor has approved or received a copy of the court order or decree that complies with subsection (1) of this section, then notice shall be provided to the obligor at least fifteen days before the obligee seeks a mandatory benefits assignment order. The notice shall state that, if a spousal maintenance ((~~or property division~~)) payment is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems, the obligee may seek a mandatory benefits assignment order without further notice to the obligor. Service of the notice shall be by personal service, or by any form of mail requiring a return receipt. The notice requirement under this subsection is not jurisdictional.

Sec. 5. Section 6, chapter 326, Laws of 1987 and RCW 41.50.550 are each amended to read as follows:

(1) An obligee who wishes to be notified by the department of retirement systems if the obligor seeks a withdrawal of accumulated contributions shall submit such a request to the department in writing on a form supplied by the department. The request shall be filed by certified or registered mail and shall include the obligee's address and a copy of the dissolution order requiring the spousal maintenance ((~~or property division obligation~~)) owed.

(2) The department shall thereafter promptly send notice to the obligee at the address provided in subsection (1) of this section when the obligor applies for a withdrawal of accumulated contributions. The department shall not process the obligor's request for a withdrawal of accumulated contributions sooner than seventy-five days after sending the notice to the obligee.

(3) The department ((~~may~~)) shall pay directly to an obligee who has not obtained a mandatory benefits assignment order all or part of the accumulated contributions ((~~withdrawn by an obligor if, and only~~)) if the dissolution order filed with the department pursuant to subsection (1) of this section includes a provision that states in ((~~substantially~~)) the following form:

"At such time as .......... (the obligor) requests a withdrawal of accumulated contributions as defined in RCW 41.50.500, the department of retirement systems shall pay to .......... (the obligee) .......... dollars from such accumulated contributions or ..... percentage of such accumulated contributions (whichever is provided by the court)."

Sec. 6. Section 7, chapter 326, Laws of 1987 and RCW 41.50.560 are each amended to read as follows:

(1) A petition or motion seeking a mandatory benefits assignment order in an action under RCW 41.50.530 may be filed by an obligee if the obligor is more than fifteen days past due in spousal maintenance ((~~or property division obligation~~)) payments and the total of such past due payments is equal to or greater than one hundred dollars or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems. The petition or motion shall include a sworn statement by the obligee, stating the facts authorizing the issuance of the mandatory benefits assignment order, including:

(a) That the obligor, stating his or her name, residence, and social security number, (i) is more than fifteen days past due in spousal maintenance payments ((~~or property division obligation payments~~)) and that the total of such past due payments is equal to or greater than one hundred dollars, or (ii) has requested a withdrawal of accumulated contributions from the department of retirement systems;

(b) A description of the terms of the dissolution order requiring payment of spousal maintenance ((~~or a property division obligation~~)) and the amount, if any, past due;

(c) The name of the public retirement system or systems from which the obligor is currently receiving periodic retirement benefits or from which the obligor has requested a withdrawal of accumulated contributions; and

(d) That notice has been provided to the obligor as required by RCW 41.50.540.

(2) If the court in which a mandatory benefits assignment order is sought does not already have a copy of the dissolution order in the court file, then the obligee shall attach a copy of the dissolution order to the petition or motion seeking the mandatory benefits assignment order.

Sec. 7. Section 9, chapter 326, Laws of 1987 and RCW 41.50.580 are each amended to read as follows:

(1) (a) The mandatory benefits assignment order in RCW 41.50.570 directed at periodic retirement benefits shall include:

(i) The maximum amount of current spousal maintenance ((~~or property division obligation, if any,~~)) to be withheld from the obligor's periodic retirement benefits each month;

(ii) The total amount of the arrearage judgments previously entered by the court, if any, together with interest, if any; and

(iii) The maximum amount to be withheld from the obligor's periodic retirement payments each month to satisfy the arrearage judgments specified in (a)(ii) of this subsection.

(b) ((~~With respect to such a mandatory benefits assignment order,~~)) The total amount to be withheld from the obligor's periodic retirement payments each month pursuant to a mandatory benefits assignment order shall not exceed fifty percent of the disposable benefits of the obligor ((~~or the maximum amount allowed by 15 U.S.C. Sec. 1673, whichever is less~~)). If the amounts to be paid toward the arrearage are specified in the assignment order, then the maximum amount to be withheld is the sum of the current maintenance ordered and the amount ordered to be paid toward the arrearage, or fifty percent of the disposable earnings of the obligor, whichever is less.

(c) ((~~Except as otherwise required by federal law,~~)) The provisions of RCW 6.27.150 do not apply to mandatory benefits assignment orders under the chapter, but fifty percent of the disposable benefits of the obligor are exempt from collection under the assignment order, and may be disbursed by the department to the obligor.

(2)(a) A mandatory benefits assignment order in RCW 41.50.570 directed at a withdrawal of accumulated contributions shall include:

(i) ((The property division interest, if any, of the obligee in the obligor's accumulated contributions, established by the dissolution order, which interest shall be stated as either a dollar amount or a percentage amount in the mandatory benefits assignment order)) The maximum amount of current spousal maintenance to be withheld from the obligor's accumulated contributions;

(ii) The total amount of the arrearage judgments for spousal maintenance payments ((~~or property division payments~~)) entered by the court, if any, together with interest, if any; and

(iii) The amount to be withheld from the obligor's withdrawal of accumulated contributions to satisfy the ((~~property division interest~~)) current maintenance obligation and the arrearage judgments specified in (a) (i) and (ii) of this subsection;

(b) With respect to such a mandatory benefits assignment order, the total amount to be withheld from the obligor's withdrawal of accumulated contributions may be up to one hundred percent of the disposable benefits of the obligor.

(3) If an obligor is subject to two or more mandatory benefits assignment orders on account of different obligees and if the nonexempt portion of the obligor's benefits is not sufficient to respond fully to all the mandatory benefits assignment orders, the department shall apportion the obligor's nonexempt disposable benefits among the various obligees in equal shares to the extent permitted by federal law. Any obligee may seek a court order reapportioning the obligor's nonexempt disposable earnings upon notice to all interested obligees. Notice shall be by personal service, or in a manner provided by the civil rules of superior court or applicable statute.

Sec. 8. Section 10, chapter 326, Laws of 1987 and RCW 41.50.590 are each amended to read as follows:

The mandatory benefits assignment order shall be ((~~substantially~~)) in the following form:

@lb IN THE SUPERIOR COURT OF THE STATE OF

WASHINGTON IN AND FOR THE COUNTY OF

!sc.,020

!tn3 !ix!w×,!tl!ss1!ix

!ix!sc ,002Obligee!tj1!tlNo.!w×!tl

!ix!sc ,006vs.

!tl!ss1!tlMANDATORY

!ix!w×,!tl!ss1!tlBENEFITS!sc ,1ASSIGNMENT

!ix!sc ,002Obligor!tj1!tlORDER

!ix!w×,!tl

!ixThe!sc ,1Department!sc ,1of!sc ,1Retirement!sc ,1Systems

!ixof!sc ,1the!sc ,1State!sc ,1of!sc ,1Washington

!ixTHE STATE OF WASHINGTON TO:!SC ,2The Department of Retirement Systems

!ixAND TO:!sc ,2!W×

Obligor

The above-named obligee claims that the above-named obligor is more than fifteen days past due in spousal maintenance ((~~or property division obligation~~)) payments and that the total amount of such past due payments is equal to or greater than one hundred dollars or that the obligor has requested a withdrawal of accumulated contributions from the department of retirement systems. The amount of the accrued past due spousal maintenance ((~~or property division obligation~~)) debt as of this date is .......... dollars. If the obligor is receiving periodic retirement payments from the department, the amount to be withheld from the obligor's benefits to satisfy such accrued spousal maintenance ((~~or property division obligation~~)) is .......... dollars per month and the amount to be withheld from the obligor's benefits to satisfy current and continuing spousal maintenance ((~~or property division obligation~~)) is .......... per month. If the obligor has requested a withdrawal of accumulated contributions from the department, the amount to be withheld from the obligor's benefits to satisfy such accrued spousal maintenance ((~~or property division obligation~~)) is .......... dollars ((and the amount to be withheld from the obligor's benefits to satisfy the obligee's property division interest in the obligor's accumulated contributions is ... percent of the disposable benefits or is .......... dollars)).

You are hereby commanded to answer this order by filling in the attached form according to the instructions, and you must mail or deliver the original of the answer to the court, one copy to the obligee or obligee's attorney, and one copy to the obligor within twenty days after service of this benefits assignment order upon you.

(1) If you are currently paying periodic retirement payments to the obligor, then you shall do as follows:

(a) Withhold from the obligor's retirement payments each month the lesser of:

(i) The sum of the specified arrearage payment amount plus the specified current spousal maintenance ((~~or property division obligation~~)) amount; or

(ii) Fifty percent of the disposable benefits of the obligor ((~~or the maximum amount allowed by federal law, whichever is less~~)).

(b) The total amount withheld above is subject to the mandatory benefits assignment order, and all other sums may be disbursed to the obligor.

You shall continue to withhold the ordered amounts from nonexempt benefits of the obligor until notified by a court order that the mandatory benefits assignment order has been modified or terminated. You shall promptly notify the court if and when the obligor is no longer receiving periodic retirement payments from the department of retirement systems.

You shall deliver the withheld benefits to the clerk of the court that issued this mandatory benefits assignment order each month, but the first delivery shall occur no sooner than twenty days after your receipt of this mandatory benefits assignment order.

(2) If you are not currently paying periodic retirement payments to the obligor but the obligor has requested a withdrawal of accumulated contributions, then you shall do as follows:

(a) Withhold from the obligor's benefits the sum of the specified arrearage payment amount plus the specified ((~~property division~~)) interest amount, up to one hundred percent of the disposable benefits of the obligor.

(b) The total amount withheld above is subject to the mandatory benefits assignment order, and all other sums may be disbursed to the obligor.

You shall mail a copy of this order and a copy of your answer to the obligor at the mailing address in the department's files as soon as is reasonably possible. This mandatory benefits assignment order has priority over any assignment or order of execution, garnishment, attachment, levy, or similar legal process authorized by Washington law, except for a wage assignment order for child support under chapter 26.18 RCW or order to withhold or deliver under chapter 74.20A RCW.

@lb NOTICE TO OBLIGOR: YOU HAVE A RIGHT TO REQUEST A HEARING IN THE SUPERIOR COURT THAT ISSUED THIS MANDATORY BENEFITS ASSIGNMENT ORDER, TO REQUEST THAT THE COURT QUASH, MODIFY, OR TERMINATE THE MANDATORY BENEFITS ASSIGNMENT ORDER.

DATED THIS ... day of ... , 19 ... .

!tp1,1!ix!w×!tl!w×

!ixObligee,!tlJudge/Court!sc ,1Commissioner

!ixor!sc ,1obligee's!sc ,1attorney@la

!ix

Sec. 9. Section 11, chapter 326, Laws of 1987 and RCW 41.50.600 are each amended to read as follows:

(1) The director or the director's designee shall answer an order by sworn affidavit within twenty days after the date of service. The answer shall state whether the obligor receives periodic payments from the department of retirement systems, whether the obligor has requested a withdrawal of accumulated contributions from the department, whether the department will honor the mandatory benefits assignment order and if not, the reasons why, and whether there are other current court or administrative orders on file with the department directing the department to withhold all or a portion of the obligor's benefits.

(2) (a) If any periodic retirement payments are currently payable to the obligor, the funds subject to the mandatory benefits assignment order shall be withheld from the next periodic retirement payment due twenty days or more after receipt of the mandatory benefits assignment order. The withheld amount shall be delivered to the clerk of the court that issued the mandatory benefits assignment order each month, but the first delivery shall occur no sooner than twenty days after receipt of the mandatory benefits assignment order.

(b) The department shall continue to withhold the ordered amount from nonexempt benefits of the obligor until notified by the court that the mandatory benefits assignment order has been modified or terminated. If the department is initially unable to comply, or able to comply only partially, with the withholding obligation, the court's order shall be interpreted to require the department to comply to the greatest extent possible at the earliest possible date. The department shall notify the court of changes in withholding amounts and the reason for the change. When the obligor is no longer eligible to receive funds from one or more public retirement systems the department shall promptly notify the court.

(3)(a) If no periodic retirement payments are currently payable to the obligor but the obligor has requested a withdrawal of accumulated contributions, the funds subject to the mandatory benefits assignment order shall be withheld from the withdrawal payment. The withheld amount shall be delivered to the clerk of the court that issued the mandatory benefits assignment order.

(b) If the department is unable to comply fully with the withholding obligation, the court's order shall be interpreted to require the department to comply to the greatest extent possible.

(4) The department may deduct a processing fee from the remainder of the obligor's funds after withholding under the mandatory benefits assignment order, unless the remainder is exempt under RCW 41.50.580. The processing fee may not exceed (a) twenty-five dollars for the first disbursement made by the department to the superior court clerk; and (b) six dollars for each subsequent disbursement to the clerk.

(5) A court order for spousal maintenance ((~~or a property division obligation~~)) governed by RCW 41.50.500 through 41.50.650 or 26.09.138 shall have priority over any other assignment or order of execution, garnishment, attachment, levy, or similar legal process authorized under Washington law, except for a mandatory wage assignment for child support under chapter 26.18 RCW, or an order to withhold and deliver under chapter 74.20A RCW.

(6) If the department, without good cause, fails to withhold funds as required by a mandatory benefits assignment order issued under RCW 41.50.570, the department may be held liable to the obligee for any amounts wrongfully disbursed to the obligor in violation of the mandatory benefits assignment order. However, the department shall under no circumstances be held liable for failing to withhold funds from a withdrawal of accumulated contributions unless the mandatory benefits assignment order was properly served on the department at least thirty days before the department made the withdrawal payment to the obligor. If the department is held liable to an obligee for failing to withhold funds as required by a mandatory benefits assignment order, the department may recover such amounts paid to an obligee by thereafter either withholding such amounts from the available nonexempt benefits of the obligor or filing a legal action against the obligor.

(7) If the department complies with a court order pursuant to RCW 41.50.500 through 41.50.650, neither the department, its officers, its employees, nor any of the retirement systems listed in RCW 41.50.030 may be liable to the obligor for wrongful withholding.

(8) The department may combine amounts withheld from various obligors into a single payment to the superior court clerk, if the payment includes a listing of the amounts attributable to each obligor and other information as required by the clerk.

(9) The department shall mail to the obligor at the obligor's last known mailing address appearing in the department's files copies of the mandatory benefits assignment order and the department's answer within twenty days after receiving the mandatory benefits assignment order.

(10) The department shall not consider any withholding allowance that is elective to the employee to be a mandatory deduction for purposes of calculating the member's disposable benefits subject to a mandatory benefits assignment order. The department shall withhold elective withholdings as elected by the employee after the disbursement of benefits to an obligee pursuant to a mandatory benefits assignment order.

Sec. 10. Section 13, chapter 326, Laws of 1987 and RCW 41.50.620 are each amended to read as follows:

(1) Service of the mandatory benefits assignment order on the department is invalid unless it is served with four answer forms in ((~~substantial~~)) conformance with RCW 41.50.610, together with stamped envelopes addressed to, respectively, the clerk of the court where the order was issued, the obligee's attorney or the obligee, and the obligor at the last mailing address known to the obligee. The obligee shall also include an extra copy of the mandatory benefits assignment order for the department to mail to the obligor. Service on the department shall be in person or by any form of mail requiring a return receipt.

(2) On or before the date of service of the mandatory benefits assignment order on the department, the obligee shall mail or cause to be mailed by certified or registered mail a copy of the mandatory benefits assignment order to the obligor at the obligor's last mailing address known to the obligee; or, in the alternative, a copy of the mandatory benefits assignment order shall be served on the obligor in the same manner as a summons in a civil action on, before, or within two days after the date of service of the order on the department. This requirement is not jurisdictional, but if the copy is not mailed or served as this subsection requires, or if any irregularity appears with respect to the mailing or service, the superior court, in its discretion, may quash the mandatory benefits assignment order, upon motion of the obligor promptly made and supported by an affidavit showing that the obligor has been prejudiced due to the failure to mail or serve the copy.

Sec. 11. Section 14, chapter 326, Laws of 1987 and RCW 41.50.630 are each amended to read as follows:

In a hearing to quash, modify, or terminate the mandatory benefits assignment order, the court may grant relief only upon a showing that the mandatory benefits assignment order causes extreme hardship or substantial injustice. Satisfaction by the obligor of all past due payments subsequent to the issuance of the mandatory benefits assignment order is not grounds to quash, modify, or terminate the mandatory benefits assignment order. If a mandatory benefits assignment order has been in operation for twelve consecutive months and the obligor's spousal maintenance ((~~or property division obligation~~)) is current, the court may terminate the order upon motion of the obligor unless the obligee can show good cause as to why the mandatory benefits assignment order should remain in effect.

Sec. 12. Section 16, chapter 326, Laws of 1987 and RCW 41.50.650 are each amended to read as follows:

Notwithstanding RCW 2.10.180(1), 2.12.090(1), 41.26.180(1), 41.32.590(1), 41.40.380(1), and 43.43.310(1) as those sections existed between July 1, 1987, and the effective date of this 1990 act, the department of retirement systems ((~~may~~)) shall make direct payments of benefits to a spouse or ex spouse pursuant to court orders or decrees entered before July 1, 1987, that complied with all the requirements in RCW 2.10.180(1), 2.12.090(2), 41.26.180(3), 41.32.590(3), 41.40.380(3), 43.43.310(2), and 41.04.310 through 41.04.330, as such requirements existed before July 1, 1987. The department of retirement systems shall notify a spouse or ex spouse who, pursuant to a mandatory benefits assignment order entered between July 1, 1987, and the effective date of this 1990 act, is receiving benefits in satisfaction of a court-ordered spousal maintenance or property division, that he or she is entitled to receive direct payments of a court-ordered property division pursuant to section 13 of this 1990 act if the dissolution order complies or is modified to comply with the requirements of sections 13 through 17 and 25 of this 1990 act and, as applicable, RCW 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, 43.43.310, and 26.09.138. The department shall send notice in writing as soon as reasonably feasible but no later than thirty days after the effective date of this 1990 act. The department shall also send notice to the obligor member spouse.

NEW SECTION. Sec. 13. Nothing in this chapter regarding mandatory assignment of benefits to enforce a spousal maintenance obligation shall abridge the right of an obligee to direct payments of retirement benefits to satisfy a property division obligation ordered pursuant to a court decree of dissolution or legal separation or any court order or court-approved property settlement agreement incident to any court decree of dissolution or legal separation as provided in RCW 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, 43.43.310, or 26.09.138, as those statutes existed before July 1, 1987, and as amended by sections 18 through 24 of this act. Benefits under this chapter, whether received in periodic retirement payments or withdrawn as a lump sum payment, shall be payable to a spouse or ex spouse to satisfy a property division obligation to the extent expressly provided for in any court decree of dissolution or legal separation or in any court order or court-approved property settlement incident to any court decree of dissolution or legal separation. Persons whose court decrees were entered between July 1, 1987, and the effective date of this act shall also be entitled to receive direct payments of retirement benefits to satisfy court-ordered property divisions if the dissolution orders comply or are modified to comply with this section and sections 14 through 17 and 25 of this act and, as applicable, RCW 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, 43.43.310, and 26.09.138.

NEW SECTION. Sec. 14. The department may deduct a processing fee for administering direct payments under section 13 of this act according to the dissolution order. The fee may not exceed (a) seventy-five dollars or the actual administrative costs, whichever is less, for the first disbursement made by the department; and (b) six dollars or the actual administrative costs, whichever is less for subsequent disbursements. The department shall deduct the fee in equal dollar amounts from the obligee's and obligor's payments.

NEW SECTION. Sec. 15. The department shall provide an obligee entitled to direct payment of retirement benefits pursuant to a dissolution order under section 13 of this act with an initial statement of monthly retirement benefit allowance issued to the obligor which provides retirement benefit information including the average final compensation, total years of service, retirement date, monthly retirement benefit, federal income tax paid, and savings and interest.

NEW SECTION. Sec. 16. All direct payments of property division made to a nonmember spouse or ex spouse pursuant to section 13 of this act shall cease upon the death of such nonmember spouse or ex spouse. Upon the death of the nonmember spouse or ex spouse, the department is authorized and directed to pay to the member his or her full monthly entitlement of benefits.

NEW SECTION. Sec. 17. Whenever the department of retirement systems makes direct payments of property division to a spouse or ex spouse under section 13 of this act to the extent expressly provided for in any court decree of dissolution or legal separation or in any court order or court-approved property settlement agreement incident to any court decree of dissolution or legal separation, it shall be a sufficient answer to any claim of a beneficiary against the department for the department to show that the payments were made pursuant to court decree.

Sec. 18. Section 18, chapter 267, Laws of 1971 ex. sess. as last amended by section 22, chapter 360, Laws of 1989 and RCW 2.10.180 are each amended to read as follows:

(1) Except as provided in subsections (2), (3), ((~~and~~)) (4), and (5) of this section, the right of a person to a retirement allowance, disability allowance, or death benefit, the retirement, disability or death allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created under this chapter, are hereby exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, or any other process of law whatsoever.

(2) Benefits under this chapter shall be payable to a spouse or ex spouse to the extent expressly provided for in any court decree of dissolution or legal separation or in any court order or court-approved property settlement incident to any court decree of dissolution or legal separation.

(3) Subsection (1) of this section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing 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.

((~~(3)~~)) (4) Deductions made in the past from retirement benefits are hereby expressly recognized, ratified, and affirmed. Future deductions may only be made in accordance with this section.

((~~(4)~~)) (5) Subsection (1) of this section shall not prohibit the department of retirement systems from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) a notice of payroll deduction issued under chapter 26.23 RCW, (c) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (d) a mandatory benefits assignment order issued pursuant to chapter 41.50 RCW, ((or)) (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as provided in chapter 41.50 RCW, (f) a court order to enforce a property settlement entered in a dissolution proceeding, or (g) any administrative or court order expressly authorized by federal law.

Sec. 19. Section 32, chapter 52, Laws of 1982 1st ex. sess. as last amended by section 23, chapter 360, Laws of 1989 and RCW 2.12.090 are each amended to read as follows:

(1) Except as provided in subsections (2), (3), ((~~and~~)) (4), and (5) of this section, the right of any person to a retirement allowance or optional retirement allowance under the provisions of this chapter and all moneys and investments and income thereof are exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or the insolvency laws, or other processes of law whatsoever and shall be unassignable except as herein specifically provided.

(3) Subsection (1) of this section shall not prohibit the department of retirement systems from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) a notice of payroll deduction issued under chapter 26.23 RCW, (c) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (d) a mandatory benefits assignment order issued pursuant to chapter 41.50 RCW, ((or)) (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as provided in chapter 41.50 RCW, (f) a court order to enforce a property settlement entered in a dissolution proceeding, or (g) any administrative or court order expressly authorized by federal law.

((~~(3)~~)) (4) Subsection (1) of this section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing 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.

((~~(4)~~)) (5) Deductions made in the past from retirement benefits are hereby expressly recognized, ratified, and affirmed. Future deductions may only be made in accordance with this section.

Sec. 20. Section 23, chapter 209, Laws of 1969 ex. sess. as last amended by section 24, chapter 360, Laws of 1989 and RCW 41.26.180 are each amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) of this section, the right of a person to a retirement allowance, disability allowance, or death benefit, to the return of accumulated contributions, the retirement, disability or death allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created under this chapter, 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 any other process of law whatsoever, and shall be unassignable.

(3) On the written request of any person eligible to receive benefits under this section, the department of retirement systems may deduct from such payments the premiums for life, health, or other insurance. The request on behalf of any child or children shall be made by the legal guardian of such child or children. The department of retirement systems may provide for such persons one or more plans of group insurance, through contracts with regularly constituted insurance carriers or health care service contractors.

((~~(3)~~)) (4) Subsection (1) of this section shall not prohibit the department of retirement systems 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 pursuant to chapter 41.50 RCW, ((or)) (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as provided in chapter 41.50 RCW, (f) a court order to enforce a property settlement entered in a dissolution proceeding, or (g) any administrative or court order expressly authorized by federal law.

Sec. 21. Section 59, chapter 80, Laws of 1947 as last amended by section 25, chapter 360, Laws of 1989 and RCW 41.32.590 are each amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) 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.

(3) 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.58.420 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 the Washington state teachers' retirement 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 and regulations that may be promulgated by the director of retirement systems.

Sec. 22. Section 39, chapter 274, Laws of 1947 as last amended by section 27, chapter 360, Laws of 1989 and RCW 41.40.380 are each amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) of this section, the right of a person to a pension, an annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, the various funds created by this chapter, and all moneys and investments and income thereof, 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, and shall be unassignable.

(3) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing 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 and which has been approved for deduction in accordance with rules and regulations that may be promulgated by the state health care authority and/or the department of retirement systems, and this section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

Sec. 23. Section 29, chapter 360, Laws of 1989 and RCW 43.43.310 are each amended to read as follows:

(1) Except as provided in subsections (2) ((~~and~~)), (3), and (4) of this section, the right of any person to a retirement allowance or optional retirement allowance under the provisions hereof and all moneys and investments and income thereof are exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or the insolvency laws, or other processes of law whatsoever and shall be unassignable except as herein specifically provided.

(3) Subsection (1) of this section shall not prohibit the department of retirement systems 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 pursuant to chapter 41.50 RCW, ((or)) (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as provided in chapter 41.50 RCW, (f) a court order to enforce a property settlement entered in a dissolution proceeding, or (g) any administrative or court order expressly authorized by federal law.

Sec. 24. Section 26, chapter 326, Laws of 1987 and RCW 26.09.138 are each amended to read as follows:

(1) Any obligee of a court order or decree establishing a spousal maintenance obligation ((~~or a property division obligation~~)) may seek a mandatory benefits assignment order under chapter 41.50 RCW if any spousal maintenance payment ((~~or a property division obligation payment~~)) is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars, or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems.

(2) Any court order or decree establishing a spousal maintenance obligation ((~~or a property division obligation~~)) may state that, if any spousal maintenance payment ((~~or property division obligation payment~~)) is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars, or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems, the obligee may seek a mandatory benefits assignment order under chapter 41.50 RCW without prior notice to the obligor. Any such court order or decree may also, or in the alternative, contain a provision that would allow the department to make a direct payment of all or part of a withdrawal of accumulated contributions pursuant to RCW 41.50.550(3). Failure to include this provision does not affect the validity of the court order or decree establishing the spousal maintenance ((~~or property division obligations~~)), nor does such failure affect the general applicability of RCW 41.50.500 through 41.50.650 to such obligations.

(3) The remedies in RCW 41.50.530 through 41.50.630 are the exclusive provisions of law enforceable against the department of retirement systems in connection with any action for enforcement of a spousal maintenance obligation ordered pursuant to a divorce, dissolution, or legal separation, and no other remedy ordered by a court under this chapter shall be enforceable against the department of retirement systems for collection of spousal maintenance.

(4) Nothing in this section regarding mandatory assignment of benefits to enforce a spousal maintenance obligation shall abridge the right of an ex spouse to direct payments of retirement benefits payable pursuant to a court decree of dissolution or legal separation or any court order or court-approved property settlement agreement or incident to any court decree of dissolution or legal separation as provided in RCW 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, or 43.43.310 as those statutes existed before July 1, 1987, and as amended by sections 18 through 23 of this 1990 act. Persons whose decrees were entered between July 1, 1987, and the effective date of this 1990 act shall also be entitled to receive direct payments of retirement benefits to satisfy court-ordered property divisions if the dissolution orders comply or are amended to comply with sections 13 through 17 and 25 of this 1990 act and, as applicable, RCW 2.10.180, 2.12.090, 41.26.180, 41.32.590, 41.40.380, or 43.43.310.

NEW SECTION. Sec. 25. A party to a dissolution proceeding may file a motion with the court requesting the court to enter an order restraining the department from paying any benefits to a member until further order of the court. The department shall not pay benefits to a member from the time a restraining order is served on the department until the court enters a further order disposing of the benefits.

Sec. 26. Section 28, chapter 264, Laws of 1969 ex. sess. as last amended by section 1015, chapter 442, Laws of 1987 and RCW 6.27.150 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, if the garnishee is an employer owing the defendant earnings, then for each week of such earnings, an amount shall be exempt from garnishment which is the greatest of the following:

(a) Thirty times the federal minimum hourly wage prescribed by section 206(a)(1) of Title 29 of the United States Code in effect at the time the earnings are payable; or

(b) Seventy-five percent of the disposable earnings of the defendant.

(2) In the case of a garnishment based on a judgment or other court order for child support or court order for spousal maintenance, other than a mandatory wage assignment order pursuant to chapter 26.18 RCW, or a mandatory assignment of retirement benefits pursuant to chapter 41.50 RCW, the exemption shall be fifty percent of the disposable earnings of the defendant if the individual is supporting a spouse or dependent child (other than a spouse or child on whose behalf the garnishment is brought), or forty percent of the disposable earnings of the defendant if the individual is not supporting such a spouse or dependent child.

(3) The exemptions stated in this section shall apply whether such earnings are paid, or are to be paid, weekly, monthly, or at other intervals, and whether earnings are due the defendant for one week, a portion thereof, or for a longer period.

(4) Unless directed otherwise by the court, the garnishee shall determine and deduct exempt amounts under this section as directed in the writ of garnishment and answer, and shall pay these amounts to the defendant.

(5) No money due or earned as earnings as defined in RCW 6.27.010 shall be exempt from garnishment under the provisions of RCW 6.15.010, as now or hereafter amended.

NEW SECTION. Sec. 27. Sections 13 through 17 and 25 of this act are each added to chapter 41.50 RCW.

NEW SECTION. Sec. 28. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.