Bill > S1949

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 and other legal processes. Previously, these benefits were largely protected from creditors, but this bill allows for exceptions to satisfy certain financial claims, including state tax debts issued by the Director of the New Jersey Division of Taxation, debts owed to the Victims of Crime Compensation Agency, court-ordered child support, alimony, or equitable distribution (including qualified domestic relations orders, which are specific court orders related to divorce or separation that divide retirement benefits), and federal tax levies or federal criminal restitution orders. The bill also clarifies that any setoff against a member's pension benefits will be limited to the maximum amount permitted by law, and the Director of the Division of Pensions and Benefits will establish rules to ensure recipients are notified and have a chance to contest any setoff, with safeguards for personal information.