GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 665
SENATE BILL 464

AN ACT TO SUBJECT STATE-ADMINISTERED RETIREMENT SYSTEMS TO INCOME WITHHOLDING FOR CHILD SUPPORT.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 135-9 reads as rewritten:
"§ 135-9.  Exemption from taxes, garnishment, attachment, etc.
Except for the applications of the provisions of G.S. 110-136, and G.S. 110-136.3 et seq., and in connection with a court-ordered equitable distribution under G.S. 50-20, the right of a person to a pension, or annuity, or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit or any other right accrued or accruing to any person under the provisions of this Chapter, and the moneys in the various funds created by this Chapter, 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 except as in this Chapter specifically otherwise provided.  Notwithstanding any provisions to the contrary, any overpayment of benefits to a member in a state-administered retirement system or the former Disability Salary Continuation Plan or the Disability Income Plan of North Carolina may be offset against any retirement allowance, return of contributions or any other right accruing under this Chapter to the same person, the person's estate, or designated beneficiary."
Sec. 2.  G.S. 135-95 reads as rewritten:
"§ 135-95.  Exemption from taxes, garnishment, attachment.
Except for the applications of the provisions of G.S. 110-136, and G.S. 110-136.3 et seq., and in connection with a court-ordered equitable distribution under G.S. 50-20, the right of a member in the Supplemental Retirement Income Plan to the benefits provided under this Article is nonforfeitable and exempt from levy, sale, garnishment, and the benefits payable under this Article are hereby exempt from any State and local government taxes."
Sec. 3.  G.S. 128-31 reads as rewritten:
"§ 128-31.  Exemptions from execution.
Except for the applications of the provisions of G.S. 110-136, and G.S. 110-136.3 et seq., and in connection with a court-ordered equitable distribution under G.S. 50-20, the right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit or any other right accrued or accruing to any person under the provisions of this Article, and the moneys in the various funds created by this Article, 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 except as in this Article specifically otherwise provided.  Notwithstanding any provisions to the contrary, any overpayment of benefits to a member in a State-administered retirement system or Disability Salary Continuation Plan may be offset against any retirement allowance, return of contributions or any other right accruing under this Chapter to the same person, the person's estate, or designated beneficiary."
Sec. 4.  This act shall become effective October 1, 1989, and applies to orders issued on or after that date.
In the General Assembly read three times and ratified this the 24th day of July, 1989.