Arizona Laws 48-227. Exemption from taxation and execution; exceptions; nonassignability of benefits
A. The benefits, annuities and pensions, the employee and district contributions and the securities in which any trust fund provided for in a plan shall be invested shall not be subject to execution or attachment, garnishment, bankruptcy proceedings or other legal process. The securities in the plan’s trust fund are exempt from state, county and municipal taxes, but the benefits, annuities and pensions received by an officer or employee from such a plan after December 31, 1988 are subject to tax pursuant to title 43.
Terms Used In Arizona Laws 48-227
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- 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
- District: means an irrigation district, drainage district, flood control district, agricultural improvement district, electrical district, or power district organized pursuant to the laws of this state. See Arizona Laws 48-221
- Employee: means a person in the service of a district whose customary employment is for an average of not less than thirty hours a week and for twelve months a year. See Arizona Laws 48-221
- 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
- Participant: means an employee of a district who is eligible under the provisions of section 48-224 for participation in the retirement plan adopted by a district. See Arizona Laws 48-221
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Plan: means a retirement plan authorized by section 48-222. See Arizona Laws 48-221
- Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
B. No participant or beneficiary, or any other person having or claiming to have any interest of any kind or character in or under any plan adopted by a district, or any part thereof, or payment therefrom, shall have any right to sell, assign, transfer, convey, hypothecate, anticipate, or otherwise dispose of such interest.