8533 - Taxation, attachment and assignment of funds.

     § 8533.  Taxation, attachment and assignment of funds.        (a)  General rule.--Except as provided in subsections (b),     (c) and (d), the right of a person to a member's annuity, a     State annuity, or retirement allowance, to the return of     contributions, any benefit or right accrued or accruing to any     person under the provisions of this part, and the moneys in the     fund are hereby exempt from any State or municipal tax, and     exempt from levy and sale, garnishment, attachment, or any other     process whatsoever, and shall be unassignable.        (b)  Forfeiture.--Rights under this part shall be subject to     forfeiture as provided by the act of July 8, 1978 (P.L.752,     No.140), known as the Public Employee Pension Forfeiture Act.     Forfeitures under this subsection or under any other provision     of law may not be applied to increase the benefits that any     member would otherwise receive under this part.        (c)  Domestic relations order.--Rights under this part shall     be subject to attachment in favor of an alternate payee as set     forth in an approved domestic relations order.        (d)  Direct rollover.--Effective with distributions made on     or after January 1, 1993, and notwithstanding any other     provision of this part to the contrary, a distributee may elect,     at the time and in the manner prescribed by the board, to have     any portion of an eligible rollover distribution paid directly     to an eligible retirement plan by way of a direct rollover. For     purposes of this subsection, a "distributee" includes a member     and a member's surviving spouse and a member's former spouse who     is an alternate payee under an approved domestic relations     order. For purposes of this subsection, the term "eligible     rollover distribution" has the meaning given such term by IRC §     402(f)(2)(A) and "eligible retirement plan" has the meaning     given such term by IRC § 402(c)(8)(B), except that a qualified     trust shall be considered an eligible retirement plan only if it     accepts the distributee's eligible rollover distribution;     however, in the case of an eligible rollover distribution to a     surviving spouse, an eligible retirement plan is an "individual     retirement account" or an "individual retirement annuity" as     those terms are defined in IRC § 408(a) and (b).     (Oct. 5, 1980, P.L.693, No.142, eff. 60 days; Apr. 29, 1994,     P.L.159, No.29; Dec. 20, 1995, P.L.689, No.77, eff. imd.)        1995 Amendment.  Act 77 amended subsecs. (b) and (d),     retroactive as to subsec. (b) to the effective date of the act     of July 8, 1978 (P.L.752, No.140), known as the Public Employee     Pension Forfeiture Act.        1994 Amendment.  Act 29 amended the entire section, effective     immediately and retroactive to January 1, 1993, as to subsec.     (d) and effective 60 days as to the remainder of the section.        Cross References.  Section 8533 is referred to in section     8124 of Title 42 (Judiciary and Judicial Procedure).