Provides that any benefit that a beneficiary is entitled to shall be exempt from lien, attachment or garnishment and would not be transferable or assignable and provides provisions for disclaiming any such benefit.
Impact
The enactment of S2428 would significantly impact how retirement benefits are handled in the state, especially for families of state or federal employees who become beneficiaries upon the death or disability of the employee. By protecting these benefits from being seized or attached as a result of debts or legal obligations, the bill aims to provide a safety net for individuals during vulnerable times. This could improve the financial stability of beneficiaries and ensure they retain access to crucial funds intended for their support following the loss of a primary income earner.
Summary
Bill S2428 aims to amend the Rhode Island General Laws relating to the retirement system for public officers and employees, specifically regarding the protection of benefits payable upon the death or disability of these employees. The bill introduces provisions that ensure any benefits entitled to beneficiaries are exempt from liens, attachments, or garnishment, and states that these benefits cannot be transferred or assigned without specific legal processes in place. This legislative change is intended to enhance the security of retirement funds and ensure beneficiaries receive their entitled benefits without interference from creditors or legal claims.
Contention
While the bill seeks to protect beneficiaries, there could be potential points of contention regarding the exemption from garnishment. Certain governmental agencies might maintain claims against benefits, particularly in cases involving spousal or child support, and the bill's provisions could cause conflict in these scenarios. Furthermore, ensuring beneficiaries’ rights to disclaim benefits under specified conditions may complicate the administration of such benefits, potentially leading to disputes and legal challenges regarding the validity and execution of disclaimers, particularly if disagreements arise over the intentions of minor beneficiaries or legal representatives.
Provides that any benefit that a beneficiary is entitled to shall be exempt from lien, attachment or garnishment and would not be transferable or assignable and provides provisions for disclaiming any such benefit.