HB 246: "An Act allowing a member of the teacher's retirement system or the public employees' retirement system to assign to a trust the member's right to receive a monetary benefit from the system."
00HOUSE BILL NO. 246 01 "An Act allowing a member of the teacher's retirement system or the public 02 employees' retirement system to assign to a trust the member's right to receive 03 a monetary benefit from the system." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.200(a) is amended to read: 06 (a) Member contributions and other amounts held in the system on behalf of 07 a member or other person who is or may become eligible for benefits under the system 08 are exempt from Alaska state and municipal taxes and are not subject to anticipation, 09 alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, 10 either voluntary or involuntary, before they are received by the person entitled to the 11 amount under the terms of the system, and any attempt to anticipate, alienate, sell, 12 transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to 13 amounts accrued in the system is void. However, a member's right to receive benefits 14 may be assigned
01 (1) under a qualified domestic relations order; or 02 (2) to a trust or similar legal device established by the member or 03 the member's spouse, other than by will, under which the member or the 04 member's spouse may be the beneficiary of all or part of the payments from the 05 trust and the distribution of the payments is determined by one or more trustees 06 who have discretion with respect to the distribution of payments to the member 07 or the member's spouse. 08 * Sec. 2. AS 39.35.500 is amended to read: 09 Sec. 39.35.500. SAFEGUARD OF EMPLOYEE FUNDS HELD BY THE 10 SYSTEM. Employee contributions and other amounts held in the system are exempt 11 from Alaska state and local taxes. Amounts held on behalf of, or payable to, any 12 employee or other person who is or may become eligible for benefits under the system 13 are not subject to anticipation, alienation, sale, transfer, assignment, pledge, 14 encumbrance, or charge of any kind, either voluntary or involuntary, before being 15 received by the person entitled to the amount under the terms of the system. An 16 attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or 17 otherwise dispose of a right to amounts held under the system is void. However, an 18 employee's right to receive benefits may be assigned 19 (1) under a qualified domestic relations order; or 20 (2) to a trust or similar legal device established by the employee or 21 the employee's spouse, other than by will, under which the employee or the 22 employee's spouse may be the beneficiary of all or part of the payments from the 23 trust and the distribution of the payments is determined by one or more trustees 24 who have discretion with respect to the distribution of payments to the employee 25 or the employee's spouse.