New Mexico Administrative Code
Title 2 - PUBLIC FINANCE
Chapter 84 - MAGISTRATE RETIREMENT
Part 600 - INTERCEPTION OR DIVISION OF PAYMENTS
Section 2.84.600.30 - FEDERAL PRE-EMPTIVE ORDERS
Current through Register Vol. 35, No. 18, September 24, 2024
Pursuant to Section 10-12C-7 NMSA 1978, MRA 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 10-12C-7 NMSA 1978. In the following instances, however, federal laws pre-empt the provisions of Section 10-12C-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.
