Current through Register Vol. 54, No. 25, June 22, 2024
Section 249.53 - Exemption from execution; assignment of rights(a)General. In the event any member, entitled to a benefit, has been determined, at the time this benefit becomes payable, to be obligated to the Commonwealth for the repayment of money for any employment related reason, or to be obligated to the State Employees' Credit Union for the repayment of a loan not to exceed $750 with interest, as provided in section 5953 of the code (relating to taxation, attachment and assignment of funds), the Board will cause to be paid from the member's account, upon his authorization, or upon certification of his agencies legal representative, the amount of indebtedness. The member, or his designated beneficiary, in the case of a deceased member, shall have the privilege of restoring the set off amount to his account within 30 days thereafter in a lump sum. Failing that, any benefit to which he would otherwise be entitled shall be withheld until an amount sufficient to satisfy the obligation has been accumulated, whereupon the annuity shall be payable to the member.(b)Debt priorities. In the event a member is indebted, not only to the Commonwealth, but also the State Employees' Credit Union, under section 5953 of the code, payments to satisfy indebtedness to the Commonwealth shall be made in full before the Credit Union indebtedness is satisfied.(c)Effect of credit union payment. In the event the Board is required to satisfy a credit union loan on behalf of an active member, as provided in section 5953(b)(2) of the code, the amount of the satisfaction will be automatically converted into an arrears liability of the member, which shall be restored in full by the defaulting member by lump sum or payroll deductions over a period not exceeding 1 year with statutory interest charged during the repayment period.The provisions of this § 249.53 amended March 12, 1976, 6 Pa.B. 449.