Bill > A3241

Introduced Session

Currently, the retirement benefits of a member or beneficiary of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Public Employees Retirement System, the Police and Firemen's Retirement System, and the State Police Retirement System are generally exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or Federal court and are unassignable. Under this bill, the right to the retirement benefits remains so exempt except to (1) satisfy a certificate of debt issued by the Director of the New Jersey Division of Taxation pursuant to subsection (c) of N.J.S.A.54A:9-12; (2) satisfy a debt owed to the Victims of Crime Compensation Agency for the portion of an assessment ordered pursuant to N.J.S.A.2C:43-3.1 for deposit in the Victims of Crime Compensation Agency account or restitution ordered to be paid to the board pursuant to N.J.S.A.2C:44-2 for deposit in the Victims of Crime Compensation Agency Account; (3) satisfy a court order for child support, alimony or equitable distribution, including but not limited to a qualified domestic relations order as defined in section 414(p) of the federal Internal Revenue Code; or (4) satisfy an Internal Revenue Service levy or federal criminal restitution order. Regulations promulgated by the Director of the Division of Pensions and Benefits in the Department of the Treasury will provide for (1) due notice to the recipient of the pension, annuity or retirement allowance and procedures to contest the setoff prior to any setoff being imposed, and (2) safeguards against the disclosure or inappropriate use of any personally identifiable information regarding the recipient. The bill also allows no exemption for claims by the State of New Jersey against the retirement allowances or return of pension contributions payable to a member or beneficiary of any State-administered retirement system with regard to property held in a qualifying trust and any distributions from a qualifying trust currently exempt from all claims of creditors under N.J.S.A.25:2-1.

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Ronald Dancer (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 02/22/2016)