38-897. Assignments prohibited; liability of
fund
A. The right of an individual to a pension, to a refund of accumulated member
contributions, to the pension itself or to any other right accrued or accruing to any
individual, and the monies and assets of the retirement plan, are not subject to
execution, garnishment, attachment, the operation of bankruptcy or insolvency law or
other process of law except a qualified domestic relations order and are unassignable
except as may be otherwise specifically provided.
B. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
charge or otherwise dispose of any right provided in subsection A is void. The fund is
not liable in any manner for or subject to the debts, contracts, liabilities, engagements
or torts of any person entitled to these rights.
C. This section does not exempt employee benefits of any kind from a writ of
attachment, a writ of execution, a writ of garnishment and orders of assignment issued by
a court of record as the result of a judgment for arrearages of child support or for
child support debt.
D. A person who defrauds the plan or who takes, converts, steals or embezzles
monies owned by or from the plan and who fails or refuses to return the monies to the
plan on the board's written request is subject to civil suit by the plan in the superior
court in Maricopa county. On entry of an order finding the person has defrauded the plan
or taken, converted, stolen or embezzled monies owned by or from the plan, the court
shall enter an order against that person and for the plan awarding the plan all of its
costs and expenses of any kind, including attorney fees, that were necessary to
successfully prosecute the action. The court shall also grant the plan a judicial lien on
all of the nonexempt property of the person against whom judgment is entered pursuant to
this subsection in an amount equal to all amounts awarded to the plan, plus interest at
the rate prescribed by section 44-1201, subsection A, until all amounts owed are paid to
the plan.
E. Notwithstanding any other provision of this article, the board may offset
against any benefits otherwise payable by the plan to an active or retired member or
survivor any court ordered amounts awarded to the board and plan and assessed against the
member or survivor.
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