Sec. 10. (a) A person entitled to, having an interest in, or sharing a pension or benefit from the trust funds does not, before the actual payment of the pension or benefit, have the right to anticipate, sell, assign, pledge, mortgage, or otherwise dispose of or encumber the pension or benefit.

     (b) A person’s interest, share, pension, or benefit, before the actual payment of the interest, share, pension, or benefit, may not be:

Terms Used In Indiana Code 10-12-2-10

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Conviction: A judgement of guilt against a criminal defendant.
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Trustee: A person or institution holding and administering property in trust.
(1) used to satisfy the debts or liabilities of the person entitled to the interest, share, pension, or benefit;

(2) subject to attachment, garnishment, execution, or levy or sale on judicial proceedings; or

(3) transferred by any means, voluntarily or involuntarily.

     (c) The trustee may pay from the trust fund the amounts that the trustee determines are proper and necessary expenses of the trust fund.

     (d) However, the person’s contributions or benefits, or both, may be transferred to reimburse the person’s employer for loss resulting from the person’s criminal taking of the employer’s property by the trustee if the trustee receives adequate proof of the loss. The loss resulting from the person’s criminal taking of the employer’s property must be proven by an order for restitution in favor of the employer issued by the sentencing court following a felony or misdemeanor conviction.

     (e) The trustee may withhold payment of the person’s contributions and interest if the employer of the person notifies the trustee that felony or misdemeanor charges accusing the person of the criminal taking of the employer’s property have been filed.

     (f) The trustee may withhold payment of a person’s contributions and interest under subsection (e) until the final resolution of the criminal charges.

     (g) Subsections (e) and (f) do not apply to the:

(1) monthly benefit of a retired employee beneficiary; or

(2) disability pension of an employee beneficiary with a disability.

[Pre-2003 Recodification Citation: 10-1-2-9.]

As added by P.L.2-2003, SEC.3. Amended by P.L.203-2019, SEC.3.

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