Section 39.35.500. Safeguard of employee funds held by the plan; transfer to other plans.

   (a) Except as provided in AS 29.45.030(a)(1) or in (b) of this section, employee contributions and other amounts held in the plan are exempt from Alaska state and local taxes. Except as provided in this subsection and in (b) of this section, amounts held on behalf of, or payable to, any employee or other person who is or may become eligible for benefits under the plan are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, before being received by the person entitled to the amount under the terms of the plan. An attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held under the plan is void. However, an employee's right to receive benefits or the member's employee contribution account may be assigned
        (1) under a qualified domestic relations order; or
        (2) to a trust or similar legal device that meets the requirements for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4).
   (b) An inactive member may elect to have the taxable portion of an inactive employee contribution account transferred directly to another plan or an individual retirement arrangement qualified under the federal Internal Revenue Code that accepts the transfer.

Notes

Implemented As

2 AAC 35.325

History

(Sec. 39 ch 143 SLA 1960; am Sec. 10 ch 235 SLA 1968; am Sec. 48 ch 128 SLA 1977; am Sec. 7 ch 62 SLA 1982; am Sec. 47 ch 117 SLA 1986; am Sec. 30 ch 106 SLA 1988; am Sec. 18 ch 31 SLA 1992; am Sec. 16 ch 102 SLA 1994; am Sec. 44, 45 ch 68 SLA 2000)