Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 16 - Domestic Relations Orders and Other Assignments › Rule 495-16.1 - Garnishments and Income Withholding Orders

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For the limited purposes of this rule,
			 the term "member" includes IPERS members, beneficiaries, contingent annuitants
			 and any other third-party payees to whom IPERS is paying a monthly benefit or a
			 lump sum distribution.
(2) A
			 member's right to any payment from IPERS is not transferable or assignable and
			 is not subject to execution, levy, attachment, garnishment, or other legal
			 process, including bankruptcy or insolvency law, except for the purpose of
			 enforcing child, spousal, or medical support.
(3) Only members receiving payment from
			 IPERS, including monthly benefits and lump sum distributions, may be subject to
			 garnishment, attachment, or execution against funds that are payable. Such
			 garnishment, attachment, or execution is not valid and enforceable for members
			 who have not applied for and have not been approved to receive funds from
			 IPERS.
(4) Upon receipt of an
			 income withholding order issued by the Iowa department of human services or a
			 court, IPERS shall send a copy of the withholding order to the member If a
			 garnishment has been issued by a court, the party pursuing the garnishment
			 shall send a notice pursuant to Iowa law to the member against whom the
			 garnishment is issued.
(5) IPERS
			 shall continue to withhold a portion of the member's monthly benefit as
			 specified in the initial withholding order until instructed by the court or the
			 Iowa department of human services issuing the order to amend or cease payment.
			 IPERS shall continue to withhold a portion of the member's monthly benefit as
			 specified in the garnishment until the garnishment expires or is
			 released.
(6) Funds withheld or
			 garnished are taxable to the member IPERS may assess a fee of $2 per payment in
			 accordance with Iowa Code section
			 252D.18A(2).
			 The fee will be deducted from the gross amount, less federal and state income
			 tax, before a distribution is divided.
(7) A garnishment, attachment or execution
			 may not be levied upon funds which are already the subject of a levy, including
			 a levy placed upon funds by the United States Internal Revenue Service, unless
			 the requirements of IRC Section 6334(a)(8) are met. Multiple garnishments,
			 attachments and executions are allowed as long as the amount levied upon does
			 not exceed the limitations prescribed in 15 U.S.C. Section 1673(b).
(8) IPERS may release information relating to
			 entitlement to funds to a court or to the Iowa department of human services
			 prior to receipt of a valid garnishment, attachment, execution, or income
			 withholding order when presented with a written request stating the information
			 requested and reasons for the request. This request must be signed by a
			 magistrate, judge, or child support recovery unit director or the director's
			 designee, including an attorney representing the Iowa department of human
			 services. In addition, IPERS may release information to the Iowa department of
			 human services through automated matches.