Page 265
House Bill No. 5506
Public Act No. 22-118 265 of 739
annual itemized budget estimate of the costs of maintenance of public schools for the ensuing year] on behalf of such members, in accordance with the Uniformed Services Employment and Reemployment Rights Act, 38 USC Chapter 43, as amended from time to time. Sec. 181. Section 10-183q of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2022): (a) The portion of each member's compensation deducted or to be deducted under this chapter and all rights of each member and of each survivor to receive benefits or other payments under this chapter: [shall] (1) Shall be exempt from the operation of any laws relating to bankruptcy or insolvency; and (2) shall not be subject to garnishment, attachment, execution, levy or any other similar legal process or order of any court, except such compensation shall be subject to a court- approved domestic relations order in favor of an alternate payee. No assignment of any right of a member or any other person to receive benefits or other payments from the system shall be valid. The funds of the system invested in personal property shall be exempt from taxation. (b) A person selected by the court as an alternate payee under an approved domestic relations order may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution or trustee-to-trustee transfer paid directly to an eligible retirement plan by way of a direct rollover. Taxable funds may be distributed as a rollover if elected by such person. For purposes of this subsection, "eligible rollover distribution" and "eligible retirement plan" have the same meanings as provided in Section 402 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, except (1) a qualified trust shall be deemed an eligible retirement plan only if it accepts such person's eligible rollover distribution; and (2) in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan means an individual retirement account or an