51.1-124.4 - Exemption of assets from taxation; exemption of benefits and assets from execution and assignment; trust funds; unclaimed property; eligible rollover distribution.
§ 51.1-124.4. Exemption of assets from taxation; exemption of benefits andassets from execution and assignment; trust funds; unclaimed property;eligible rollover distribution.
A. The assets of the retirement systems created under this title are herebyexempted from any state, county, or municipal tax. Retirement allowances andother benefits accrued or accruing to any person under this title and theassets of the retirement systems created under this title shall not besubject to execution, attachment, garnishment, or any other processwhatsoever, except any process for a debt to any employer who has employedsuch person, and except for administrative actions pursuant to Chapter 19 (§63.2-1900 et seq.) of Title 63.2 or any court process to enforce a child orchild and spousal support obligation, nor shall any assignment thereof, otherthan a voluntary, irrevocable assignment of group life insurance pursuant to§ 51.1-510, be enforceable in any court. However, retirement benefits andassets created under this title which are deemed to be marital propertypursuant to Chapter 6 (§ 20-89.1 et seq.) of Title 20 may be divided ortransferred by the court by direct assignment to a spouse or former spousepursuant to § 20-107.3. The assets of the retirement systems administered bythe Board are trust funds and shall be used solely for the benefit of membersand beneficiaries and to administer the retirement systems. The Board shallestablish procedures whereby persons entitled to property held by the Board,which would be presumed abandoned under the Uniform Disposition of UnclaimedProperty Act (§ 55-210.1 et seq.), may recover it.
B. Notwithstanding any provision of this chapter to the contrary that wouldotherwise limit a distributee's election, a distributee may elect, at thetime and in the manner prescribed by the Board, to have any portion of aneligible rollover distribution paid directly to an eligible retirement planspecified by the distributee in a direct rollover. The terms "eligiblerollover distribution," "eligible retirement plan" and "distributee"have the meanings prescribed by § 401(a)(31) of the Internal Revenue Code(including as such section is amended or renumbered, or any successorprovision thereto) and the regulations thereunder, as may be amended. In theevent of a mandatory cash-out, as that term is defined under the InternalRevenue Code and the regulations thereunder applicable to governmental plans,greater than $1,000, if the member does not elect to have such distributionpaid directly to an eligible retirement plan specified by the member in adirect rollover or to receive the distribution directly in accordance withthis section, then the Board shall pay the distribution in a direct rolloverto an individual retirement plan designated by the Board in accordance withsubsection F of § 51.1-124.30.
(1952, c. 157, §§ 51-111.15, 51-111.24; 1954, c. 633; 1959, Ex. Sess., c. 47;1962, c. 50; 1972, c. 151; 1973, c. 523; 1976, c. 545; 1977, c. 620; 1978, c.841; 1980, cc. 559, 596; 1983, c. 308, § 51-111.26:1; 1984, c. 430; 1986, c.474; 1989, Sp. Sess., c. 3; 1990, c. 832, § 51.1-102; 1991, c. 433; 1992, cc.716, 811; 1993, c. 135; 1994, cc. 4, 85, 883; 2003, c. 15; 2006, c. 637.)