Sec. 19. (a) All pensions, annuities, and benefits payable out of the 1953 fund are exempt from seizure or levy upon attachment, garnishment, execution, and all other process. Except as provided in section 23 of this chapter, pensions, annuities, and benefits are not subject to sale, assignment, or transfer by a beneficiary.

     (b) However, the member’s contributions or benefits, or both, may be transferred to reimburse the member’s employer for loss resulting from the member’s criminal taking of the employer’s property by the local board if the local board receives adequate proof of the loss. The loss resulting from the member’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.

Terms Used In Indiana Code 36-8-7.5-19

  • 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.
  • Felony: A crime carrying a penalty of more than a year in prison.
  • 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
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • 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.
     (c) The local board may withhold payment of the member’s contributions and interest if the employer of the member notifies the local board that felony or misdemeanor charges accusing the member of the criminal taking of the employer’s property have been filed.

     (d) The local board may withhold payment of a person’s contributions and interest under subsection (c) until the final resolution of the criminal charges.

     (e) Subsections (c) and (d) do not apply to the:

(1) pension benefit of a retired member; or

(2) disability benefit of a member who becomes disabled.

As added by Acts 1982, P.L.77, SEC.9. Amended by P.L.10-1993, SEC.17; P.L.97-2004, SEC.129; P.L.203-2019, SEC.9.