Session of 1999
         
HOUSE BILL No. 2342
         
By Representatives Lightner, Aday, Burroughs, Dahl, Flaharty, Frank-
                lin, Haley, Howell, McCreary, Myers, O'Connor, Palmer, Stone and
                Tanner
               
2-9
         

11             AN  ACT concerning civil procedure; relating to exemptions from claims
12             of creditors; pension and retirement assets; amending K.S.A. 60-2308
13             and repealing the existing section.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 60-2308 is hereby amended to read as follows: 60-
17       2308. (a) Money received by any debtor as pensioner of the United States
18       within three months next preceding the issuing of an execution, or at-
19       tachment, or garnishment process, cannot be applied to the payment of
20       the debts of such pensioner when it is made to appear appears by the
21       affidavit of the debtor or otherwise that such pension money is necessary
22       for the maintenance of the debtor's support or a family support wholly
23       or in part by the pension money. The filing of the affidavit by the debtor,
24       or making proof as above provided in this section, shall be prima facie
25       evidence, and of the necessity of such pension money for such support. It
26       shall be the duty of the court in which such proceeding is pending to
27       release all moneys held by such attachment or garnishment process, im-
28       mediately upon the filing of such affidavit, or the making of such proof.
29             (b) Except as provided in subsection (c), any money or other assets
30       payable to a participant or beneficiary from, or any interest of any partic-
31       ipant or beneficiary in, a retirement plan which is qualified under sections
32       401(a), 403(a), 403(b), 408, 408A or 409 of the federal internal revenue
33       code of 1954, as amended, 1986 and amendments thereto shall be exempt
34       from any and all claims of creditors of the beneficiary or participant. Any
35       such plan shall be conclusively presumed to be a spendthrift trust under
36       these statutes and the common law of the state. All records of the debtor
37       concerning such plan or arrangement and of the plan concerning the
38       debtor's participation in the plan or arrangement shall be exempt from
39       the subpoena process.
40             (c) Any plan or arrangement described in subsection (b) shall not be
41       exempt from the claims of an alternate payee under a qualified domestic
42       relations order. However, the interest of any and all alternate payees
43       under a qualified domestic relations order shall be exempt from any and
44       all claims of any creditor, other than the state department of social and
45       rehabilitation services, of the alternate payee. As used in this subsection,
46       the terms "alternate payee" and "qualified domestic relations order" have
47       the meaning ascribed to them in section 414(p) of the federal internal
48       revenue code of 1954, as amended 1986 and amendments thereto.
49             (d) The provisions of subsections (b) and (c) shall apply to any pro-
50       ceeding which: (1) Is filed on or after July 1, 1986; or (2) was filed on or
51       after January 1, 1986, and is pending or on appeal July 1, 1986.
52             (e) Money held by the state department of social and rehabilitation
53       services, any clerk of a district court or a district court trustee in connec-
54       tion with a court order for the support of any person, whether it be
55       identified as child support, spousal support, alimony or maintenance, shall
56       be exempt from execution, attachment or garnishment process. 
57       Sec.  2. K.S.A. 60-2308 is hereby repealed.
58        Sec.  3. This act shall take effect and be in force from and after its
59       publication in the statute book.