2010 Pennsylvania Code
Title 24 - EDUCATION
Chapter 85 - Administration and Miscellaneous Provisions
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).