S-3812               _______________________________________________

                                                   SENATE BILL NO. 6448

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators Anderson and Rasmussen

Read first time 1/12/90 and referred to Committee on  Law & Justice.

AN ACT Relating to exemptions from execution or attachment of pension funds; and amending RCW 6.15.020.

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

        Sec. 1.  Section 6, chapter 231, Laws of 1988 as amended by section 21, chapter 360, Laws of 1989 and RCW 6.15.020 are each amended to read as follows:

          (1) Unless otherwise provided by federal law, any money received by any citizen of the state of Washington as a pension from the government of the United States, whether the same be in the actual possession of such person or be deposited or loaned, shall be exempt from execution, attachment, garnishment, or seizure by or under any legal process whatever, and when a debtor dies, or absconds, and leaves his or her family any money exempted by this section, the same shall be exempt to the family as provided in this section.  This section shall not apply to child support collection actions issued under chapter 26.18, 26.23, or 74.20A RCW, if otherwise permitted by federal law.

          (2) The right of a person to a ((pension, annuity, or retirement allowance or disability allowance, or death benefits, or any optional benefit, or any other right accrued or accruing to any citizen of the state of Washington under any employee benefit plan, and any fund created by such a plan or arrangement, shall be exempt from execution, attachment, or seizure by or under any legal process whatever.  This subsection shall not apply to child support collection actions issued under chapter 26.18, 26.23, or 74.20A RCW if otherwise permitted by federal law)) fund or the benefits of a plan as set forth in section 401(a), 403 (a) and (b), and 408 (a), (b), and (c) of the federal internal revenue code, except a plan or arrangement that is subject to the federal employee retirement income security act of 1974, as amended, 29 U.S.C. Secs. 1001 through 1461, shall be exempt from execution, attachment, or seizure under any legal process.

(3) This subsection shall permit benefits under any such plan or arrangement to be payable to a spouse, former spouse, child, or other dependent of a participant in such plan to the extent expressly provided for in a qualified domestic relations order (as such term is defined in ((section 206(d) of the federal employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1056(d) or in)) section 401(a)(13) of the internal revenue code of ((1954)) 1986, as amended).

          (((3) For the purposes of this section, the term "employee benefit plan" means any plan or arrangement that is subject to the provisions of the federal employee retirement income security act of 1974, as amended, 29 U.S.C. Secs. 1001 through 1461 or that is described in sections 401(a), 403(a), 403(b), 408, or 409 (as in effect before January 1, 1984) of the internal revenue code of 1954, as amended, or both.  The term "employee benefit plan" shall not include any employee benefit plan that is excluded from the application of the federal employee retirement income security act of 1974, as amended, pursuant to section 4(b)(1) of that act, 29 U.S.C. Sec. 1003(b)(1).))

(4) For the purposes of this section, all of the plans described in subsections (2) and (3) of this section are deemed to be spendthrift trusts, regardless of the source of funds, the relationship between the trustee or custodian of the plan and the beneficiary, or the ability of the debtor to withdraw or borrow or otherwise become entitled to benefits from the plan before retirement.