Request By:
Mr. Stephen T. McMurtry
Assistant City Solicitor
City of Covington
Room 906
Third and Court Streets
Covington, Kentucky 41011
Opinion
Opinion By: David L. Armstrong, Attorney General; Walter C. Herdman, Asst. Deputy Attorney General
This is in response to your letter of December 7 in which you request on behalf of the Finance Department of the city of Covington an opinion concerning the legality of a policeman or fireman assigning whatever interest he may have in the Police and Fireman's Pension Fund to the credit union of the city of Covington in consideration of a personal loan from the credit union as mentioned in the attached authorization signed by the police officer.
KRS 95.878 reads as follows:
"The right to retirement annuity, disability annuity, survivors annuity or benefit, death benefit, or any other benefit under the provisions hereof, by whatever name called, or refund, is personal with the recipient thereof, and the assignment, or transfer of such benefit or any part thereof shall be void, except as herein provided. Any such annuity, benefit, or refund shall not answer for debts contracted by the person receiving the same, and it is the intention of this section that they shall not be attached or affected by any judicial proceeding."
The assignment executed by the employee is in direct conflict with the provisions of KRS 95.878 quoted above which declares all rights to any benefits to the Police and Fireman's Pension Fund retirement act, nemaely KRS 95.851 and 95.884, are personal with the recipient and any assignment or transfer of such benefits shall be void. This section further provides that any such benefits shall not answer for debts incurred by the employee.
Thus in our opinion the employee's assignment authorization is null and void by law.