MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Judiciary A; Appropriations

By: Representative Moore

House Bill 261

AN ACT TO AMEND SECTIONS 21-29-307, 25-11-129 AND 25-13-31, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COLLECTION OF JUDGMENTS BASED UPON COURT ORDERED CHILD SUPPORT OBLIGATIONS FROM THE RETIREMENT ALLOWANCES OR BENEFITS OF PERSONS RECEIVING SUCH ALLOWANCES OR BENEFITS UNDER CERTAIN LOCAL RETIREMENT SYSTEMS, THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE HIGHWAY SAFETY PATROL RETIREMENT SYSTEM; TO AMEND SECTION 85-3-1, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COLLECTION OF JUDGMENTS BASED UPON COURT ORDERED CHILD SUPPORT OBLIGATIONS FROM CERTAIN PROPERTY THAT IS OTHERWISE EXEMPT FROM EXECUTION OR ATTACHMENT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 21-29-307, Mississippi Code of 1972, is amended as follows:

21-29-307. The right of a person to an annuity, a retirement allowance, or benefit, or to the return of contributions, or to any optional benefit or any other right accrued or accruing to any person under the provisions of Articles 1, 3 or 5; the system; and the monies in the system created by such articles, are hereby exempt from any state, county or municipal ad valorem taxes, income taxes, premium taxes, privilege taxes, property taxes, sales and use taxes, or other taxes not so named, notwithstanding any other provision of law to the contrary, and exempt from levy and sale, garnishment, attachment or any other process whatsoever, and shall be unassignable except as in the cited articles specifically otherwise provided effective January 1, 1988. However, nothing in this section shall prohibit the collection of judgments based upon court ordered child support obligations from the retirement allowance or benefits of a person receiving such retirement allowance or benefits if the child support obligations of the person are One Thousand Dollars ($1,000.00) or more and the person is ninety (90) days or longer in arrears or delinquent in making payments in full for current support or in making periodic payments on a support arrearage.

SECTION 2. Section 25-11-129, Mississippi Code of 1972, is amended as follows:

25-11-129. The right of a person to an annuity, a retirement allowance or benefit, or to the return of contributions, or to any optional benefit or any other right accrued or accruing to any person under the provisions of Articles 1 and 3, the system and the moneys in the system created by said articles, are hereby exempt from any state, county or municipal ad valorem taxes, income taxes, premium taxes, privilege taxes, property taxes, sales and use taxes or other taxes not so named, notwithstanding any other provision of law to the contrary, and exempt from levy and sale, garnishment, attachment or any other process whatsoever, and shall be unassignable except as in the cited articles specifically otherwise provided. However, nothing in this section shall prohibit the collection of judgments based upon court ordered child support obligations from the retirement allowance or benefits of a person receiving such retirement allowance or benefits if the child support obligations of the person are One Thousand Dollars ($1,000.00) or more and the person is ninety (90) days or longer in arrears or delinquent in making payments in full for current support or in making periodic payments on a support arrearage.

SECTION 3. Section 25-13-31, Mississippi Code of 1972, is amended as follows:

25-13-31. The right of a person to an annuity, a retirement allowance or benefit, or to the return of contributions, or to any optional benefits or any other right accrued or accruing to any person under the provisions of the Highway Patrol Retirement Law, the system and the moneys in the system created by said law, are hereby exempt from any state, county or municipal ad valorem taxes, income taxes, premium taxes, privilege taxes, property taxes, sales and use taxes or other taxes not so named, notwithstanding any other provision of law to the contrary, and exempt from levy and sale, garnishment, attachment, or any other process whatsoever, and shall be unassignable except as in the cited articles specifically otherwise provided. However, nothing in this section shall prohibit the collection of judgments based upon court ordered child support obligations from the retirement allowance or benefits of a person receiving such retirement allowance or benefits if the child support obligations of the person are One Thousand Dollars ($1,000.00) or more and the person is ninety (90) days or longer in arrears or delinquent in making payments in full for current support or in making periodic payments on a support arrearage.

SECTION 4. Section 85-3-1, Mississippi Code of 1972, is amended as follows:

85-3-1. There shall be exempt from seizure under execution or attachment:

(a) Tangible personal property of the following kinds selected by the debtor, not exceeding Ten Thousand Dollars ($10,000.00) in cumulative value:

(i) Household goods, wearing apparel, books, animals or crops;

(ii) Motor vehicles;

(iii) Implements, professional books or tools of the trade;

(iv) Cash on hand;

(v) Professionally prescribed health aids.

Household goods, as used in this paragraph (a) means clothing, furniture, appliances, one (1) radio and one (1) television, linens, china, crockery, kitchenware, and personal effects (including wedding rings) of the debtor and his dependents; however, works of art, electronic entertainment equipment (except one (1) television and one (1) radio), jewelry (other than wedding rings), and items acquired as antiques are not included within the scope of the term "household goods". This paragraph (a) shall not apply to distress warrants issued for collection of taxes due the state or to wages described in Section 85-3-4.

(b) (i) The proceeds of insurance on property, real and personal, exempt from execution or attachment, and the proceeds of the sale of such property.

(ii) Income from disability insurance.

(iii) Payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless:

A. Such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose;

B. Such payment is on account of age or length of service; and

C. Such plan or contract does not qualify under Section 401(a), 403(a), 403(b), 408 or 409 of the Internal Revenue Code of 1954. Nothing in this subparagraph (iii) shall prohibit the collection of judgments based upon court ordered child support obligations from the retirement allowance or benefits of a person receiving such retirement allowance or benefits if the child support obligations of the person are One Thousand Dollars ($1,000.00) or more and the person is ninety (90) days or longer in arrears or delinquent in making payments in full for current support or in making periodic payments on a support arrearage.

(c) All property, real, personal and mixed, for the collection or enforcement of any order or judgment, in whole or in part, issued by any court for civil or criminal contempt of said court; expressly excepted herefrom are such orders or judgments for the payment of alimony, separate maintenance and child support actions.

(d) All property in this state, real, personal and mixed, for the satisfaction of a judgment or claim in favor of another state or political subdivision of another state for failure to pay that state's or that political subdivision's income tax on benefits received from a pension or other retirement plan so used in this paragraph (d), "pension or other retirement plan" includes:

(i) An annuity, pension, or profit-sharing or stock bonus or similar plan established to provide retirement benefits for an officer or employee of a public or private employer or for a self-employed individual;

(ii) An annuity, pension, or military retirement pay plan or other retirement plan administered by the United States; and

(iii) An individual retirement account.

(e) Nothing in this section shall in any way affect the rights or remedies of the holder or owner of a statutory lien or voluntary security interest.

SECTION 5. This act shall take effect and be in force from and after July 1, 1998.