Exemption of Rights and Benefits From Taxes, Legal Process, and Assignment of Retirement System Property as Public Property; Exemptions for Retirement System Property

1. Law
2. Georgia Code
3. Retirement and Pensions
4. Employees' Retirement System of Georgia
5. Miscellaneous Provisions
6. Exemption of Rights and Benefits From Taxes, Legal Process, and Assignment of Retirement System Property as Public Property; Exemptions for Retirement System Property

1. The right to a pension, annuity, retirement allowance, return of contributions, the pension, annuity, or retirement allowance itself, any optional benefit, or any other right accrued or accruing to any person under this chapter and the moneys in the various accounts created by this chapter are:
   1. Exempt from any state, county, or municipal tax, except as provided in Code Section 48-7-27;
   2. Exempt from levy and sale, garnishment, attachment, or any other process whatsoever; and
   3. Not assignable except as otherwise specifically provided in this chapter.
2. The tangible, intangible, real, personal, or mixed property, investments, or assets of the retirement system of whatever kind or nature and the earnings or proceeds derived from such property, investments, or assets are public property and are:
   1. Exempt from taxation by the state or by any county, municipality, authority, or political subdivision of this state; and
   2. Exempt from levy and sale, garnishment, attachment, or any other process whatsoever.
3. The transfer or sale of tangible, real, personal, or mixed property, investments, or assets to or from the retirement system and the instruments of such transfer or sale shall be exempt from any tax on such sales, transfers, or instruments, which tax is levied by the state or by any county, authority, municipality, or political subdivision of this state.

(Ga. L. 1949, p. 138, § 9; Ga. L. 1976, p. 611, § 1; Ga. L. 1993, p. 86, § 1; Ga. L. 2000, p. 1449, § 2.)

OPINIONS OF THE ATTORNEY GENERAL

Combination of factors constitutes assignment in fact.

- Combination of an order to send funds accruing under Ga. L. 1949, p. 138 et seq. (see O.C.G.A. Ch. 2, T. 47) to the credit union, power of attorney authorizing deposit of the funds, and a right of offset, constitutes an assignment in fact. 1980 Op. Att'y Gen. No. 80-110.

Effect of arrangement, rather than form, is material, so any method for transferring control of retirement rights to the credit union would be unlawful. If the purported or practical effect of an arrangement is to deprive an employee of control over the employee's retirement rights, then it is improper to establish the arrangement. 1980 Op. Att'y Gen. No. 80-110.

No assets of Employees' Retirement System are encumberable by lien.

- None of the assets of the Employees' Retirement System, including funds held in members' annuity savings fund accounts, can be encumbered by a lien created to secure an unreimbursed travel advance; however, such a lien can attach to other funds due the employee by the state. 1980 Op. Att'y Gen. No. 80-114.

Pending investigation does not permit withholding earned compensation.

- Department cannot withhold earned compensation from an employee who has been dismissed from service because of an effort to sell state equipment, if an investigation is underway to determine whether or not the employee is indebted to the state because of previous sales of such equipment. 1958-59 Op. Att'y Gen. p. 186.

Retirement system cannot send to state credit unions refunds of contribution checks payable to members. 1968 Op. Att'y Gen. No. 68-255.

Member prohibited from assigning rights in life insurance policy.

- Member of the retirement system is prohibited by law from assigning the ownership rights in the member's group term life insurance policy to another person. 1977 Op. Att'y Gen. No. 77-18.

Member entitled to change beneficiaries at any time.

- Any member of the retirement system covered under the life insurance provisions has the right, under Ga. L. 1977, p. 670, § 1 (see O.C.G.A. § 47-2-128) and the terms of the member's policy, to change the member's beneficiaries at any time, assuming there is no judicial decision or statutory prohibition to the contrary. 1977 Op. Att'y Gen. No. 77-18.

RESEARCH REFERENCES

Am. Jur. 2d.

- 31 Am. Jur. 2d, Exemptions, § 94 et seq. 71 Am. Jur. 2d, State and Local Taxation, § 444 et seq.

ALR.

- Validity of statute or ordinance providing for pensions for municipal employees, 37 A.L.R. 1162.

Employee retirement pension benefits as exempt from garnishment, attachment, levy, execution, or similar proceedings, 93 A.L.R.3d 711.

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