Bill > A2634

This bill amends existing New Jersey law to create specific exceptions to the general rule that benefits from state-administered pension systems are exempt from garnishment, attachment, or other legal processes. Previously, these benefits were largely protected from creditors, but this legislation allows for exceptions to satisfy certain financial claims, including debts owed to the State of New Jersey for taxes or to the Victims of Crime Compensation Agency, as well as court-ordered child support, alimony, or equitable distribution, including "qualified domestic relations orders" (QDROs) which are specific court orders related to retirement benefits for divorce settlements. Additionally, it allows for the seizure of pension benefits to satisfy an Internal Revenue Service levy or federal criminal restitution orders. The bill also mandates that any such deductions from pension benefits must be limited to the maximum amount allowed by law, and the Director of the Division of Pensions and Benefits must establish regulations to ensure recipients are notified and have a chance to contest these deductions, with safeguards against the misuse of personal information.