August 8, 1991
TO: PENSION MEMBERS NO. 30-91
RE: CONNECTICUT EXEMPTS RETIREMENT PLAN ASSETS FROM CREDITORS
__________________________________________________________
In legislation effective July 1, 1991, retirement fund
accounts in Connecticut are exempt from attachment by creditors.
The new legislation applies to any "Keogh plan or a retirement
plan established by a corporation which is qualified under
Section 401, 403, 404 or 409 of the Internal Revenue Code..."
However, in situations where the debtor-participant is
self-employed or a partner or one percent or more shareholder of
the entity sponsoring the retirement plan, contributions made
less than 90 days before the filing of the claim upon which a
judgment is entered will not be protected. Also, contributions
which are determined to be fraudulent conveyances under
Connecticut or federal law will not be protected.
IRA assets are not protected under the new law.
A copy of Connecticut Public Act No. 90-239 is attached.
We will keep you informed of related developments.
W. Richard Mason
Assistant Counsel - Pension
Attachment