N.M. Admin. Code § 2.83.600.30

Current through Register Vol. 35, No. 23, December 10, 2024

Section 2.83.600.30 - FEDERAL PREEMPTIVE ORDERS

Pursuant to Section 10-12B-7 NMSA 1978, JRA retirement accounts are not subject to legal process under other state laws, except for division of a community interest in such accounts or in enforcement of child support obligations, both as provided in Section 10-12B-7 NMSA 1978. In the following instances, however, federal laws pre-empt the provisions of Section 10-12B-7 NMSA 1978.

A. IRS notices of levy for unpaid taxes will be honored if the account is in pay status, i.e., if the member has terminated employment and requested a refund of contributions, or if a pension is payable. If the levy is applied against a refund of member contributions, non-tax deferred contributions shall be paid before tax-deferred contributions.

B. Orders issued by a U.S. bankruptcy court will be honored if the account is in pay status, i.e., if the member has terminated employment and requested a refund of contributions, or if a pension is payable. If the order is applied against a refund of member contributions, non-tax deferred contributions shall be paid before tax-deferred contributions.

C. Orders of garnishment for fines or restitution by a federal court in a criminal case will be honored if the account is in pay status, i.e. if the member has terminated employment and requested a refund of contributions, or if a pension is payable. If the order is applied against a refund of member contributions, non-tax deferred contributions shall be paid before tax-deferred contributions.

N.M. Admin. Code § 2.83.600.30

10-15-97; 2.83.600.30 NMAC - Rn, 2 NMAC 83.600.30, 12-28-01

Adopted by New Mexico Register, Volume XXVI, Issue 12, June 30, 2015, eff. 7/1/2015