Citation: Stat. - Tenn. Code Ann. § 26-2-105

� 26-2-105. Retirement and pensions

(a) All moneys received by a resident of the state, as pension from the state of Tennessee, or any subdivision or municipality thereof, before receipt, or while in the resident's hands or upon deposit in the bank, shall be exempt from execution, attachment or garnishment other than an order for assignment of support issued under � 36-5-501, whether such pensioner is the head of a family or not.

(b) Except as provided in subsection (c), any funds or other assets payable to a participant or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan which is qualified under �� 401(a), 403(a), 403(b), 408 and 408A of the Internal Revenue Code of 1986, as amended, are exempt from any and all claims of creditors of the participant or beneficiary, except the state of Tennessee. All records of the debtor concerning such plan and of the plan concerning the debtor's participation in the plan, or interest in the plan, are exempt from the subpoena process.

(c) Any plan or arrangement described in subsection (b), except a public plan under subsection (a), is not exempt from the claims of an alternate payee under a qualified domestic relations order. However, the interest of any and all alternate payees under a qualified domestic relations order are exempt from any and all claims of any creditor, other than the state of Tennessee. As used in this subsection, "alternate payee" and "qualified domestic relations order" have the meaning ascribed to them in � 414(p) of the Internal Revenue Code of 1986, as amended. Notwithstanding any provision of this subsection to the contrary, an optional retirement program established pursuant to title 8, chapter 35, part 4, shall honor claims under a qualified domestic relations order; provided, that such order complies with the provisions of � 8-35- 410.

(d)(1) Notwithstanding subsections (a)�(c), a local government that establishes and maintains for its employees a qualified plan, and the qualified plan's administrator, shall honor claims under a qualified domestic relations order, if the order relates only to the provision of marital property rights for the benefit of the former spouse of the qualified plan's participant.
(2) As used in this subsection (d):
(A) �Local government� means any county, city, or town other than a county, city, or town participating in the Tennessee consolidated retirement system pursuant to title 8, chapter 35;
(B) �Qualified domestic relations order� has the same meaning as provided in Section 414(p), Internal Revenue Code (26 U.S.C. � 414(p)); and
(C) �Qualified plan� means a retirement or pension plan that is qualified under Section 401 or Section 403, Internal Revenue Code (26 U.S.C. � 401 or � 403).
2001 Pub.Acts, c. 260, � 1, in subsec. (b), added a reference to � 408A of the Internal Revenue Code of 1986.