Exemption from Taxation, Execution and Assignment.
Milwaukee City Charter § 36-10
in effect36-10. Exemption from Taxation, Execution and Assignment.
1. All moneys and assets of any retirement system of any city of the first class and all benefits and allowances and every portion thereof, both before and after payment to any beneficiary, granted under any such retirement system shall be exempt from any state, county, or municipal tax or from attachment or garnishment process, and shall not be seized, taken, detained, or levied upon by virtue of any execution, or any process or proceeding whatsoever issued out of or by any court of this state, for the payment and ratification in whole or in part of any debt, claim, damage, demand, or judgment against any member of or beneficiary under any such retirement system, and no member of or beneficiary under any such retirement system shall have any right to assign his benefit or allowance, or any part thereof, either by way of mortgage or otherwise; however, this prohibition shall not apply to assignments made for the payment of insurance premiums. The exemption from taxation contained herein shall not apply with respect to any tax on income.
2. a.
Notwithstanding sub. 1, and for purposes of compliance with section 401(a)(31) of the Internal Revenue Code, this section applies notwithstanding any contrary provision or retirement law that would otherwise limit an election by a distributee, as defined in par. b, to make a rollover. A distributee may elect, at thetime and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
b. For purposes of this subsection:
b-1. "Direct rollover" means a payment by the plan to the eligible retirement plan specified by the distributee.
b-2. “Distributee” means a member. It also includes the member’s surviving spouse. Effective January 1, 2010, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by section 401(a)(9)(E) of the Internal Revenue Code. However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an "inherited" individual retirement account or annuity.
b-3. "Eligible retirement plan" means any of the following that accepts the distributee's eligible rollover distribution:
b-3-a. Effective January 1, 2002, an individual retirement account described in s. 408(a) of the Internal Revenue Code.
b-3-b. Effective January 1, 2002, an individual retirement annuity described in s. 408(b) of the Internal Revenue Code.
b-3-c. Effective January 1, 2002, an annuity plan described in s. 403(a) of the Internal Revenue Code.
b-3-d. A qualified trust described in s. 401(a) of the Internal Revenue Code.
b-3-e. Effective January 1, 2002, an annuity contract described in s. 403(b) of the Internal Revenue Code.
b-3-f. Effective January 1, 2002, a plan eligible under s. 457(b) of the Internal Revenue Code that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state that agrees to separately account for amounts transferred into that plan from the retirement system.
b-3-g. Effective January 1, 2008, a Roth IRA described in s. 408A of the Internal Revenue Code.
b-4. "Eligible rollover distribution" means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives, or joint life expectancies, of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal Revenue Code; the portion of any distribution that is not includible in gross income; and any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of section 415 of the Internal Revenue Code or any distribution that is reasonably expected to total less than $200 during the year. Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse. Also effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only:
b-4-a. To an individual retirement account or annuity described in section 408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution plan described in section 401(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible;
b-4-b. On or after January 1, 2007, to a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code or to an annuity contract described in section 403(b) of the Internal Revenue Code, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible; or
b-4-c. On or after January 1, 2008, to a Roth IRA described in section 408A of the Internal Revenue Code.
3.
If on or after March 28, 2005, the retirement system provides for mandatory distribution of eligible rollover distributions with a present value greater than $1,000, and if a member does not elect to have such distribution paid directly to an eligible retirement plan specified by the member in a direct rollover or to receive the distribution directly, the system will pay the distribution in a direct rollover to an individual retirement plan designated by the board of trustees in accordance with section 401(a)(31)(B) of the Internal Revenue Code and IRS Notice 2005-5.
4.
Notwithstanding sub. 1., a beneficiary who is a public safety officer as defined in s. 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968, has separated from service with all participating employers due to disability or the attainment of normal retirement age and is entitled to a service retirement allowance or a disability retirement allowance, may elect that an amount be deducted from his or her benefit payments to pay the premiums for coverage of the beneficiary, the beneficiary’s spouse or the beneficiary’s dependents (as defined in s. 152 of the Internal Revenue Code) under an accident or health insurance plan or qualified long-term care insurance contract (as defined in s. 7702B(b) of the Internal Revenue Code). The employes’ retirement system shall pay any amounts withheld from a beneficiary’s benefit payments under this subsection directly to the provider of the accident or health insurance plan or qualified long-term care insurance contract under such plan or contract. The beneficiary shall designate the annual amount to be deducted from his or her benefit payments, which amount shall not exceed the lesser of either $3,000, reduced by any amounts deducted from the beneficiary’s benefit for this purpose under any other eligible retirement plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code, or the amount required to pay such premiums. Elections pursuant to this subsection shall be made in a time, manner, and subject to any limitations established by the annuity and pension board and may only be changed in accordance with rules established by the board. (S. 36-10 cr. File #67-355-a, July 25, 1967; 36-10 rn. 36-10-1, File #921973, April 8, 1993; eff. June 28, 1993. 36-10-2 cr. File #921973, April 8, 1993; eff. June 28, 1993. 36-10-3 cr. File #921973, April 8, 1993; eff. June 28, 1993. 36-10-2 am. File #031148, Dec. 19, 2003; eff. March 13, 2004. 36-10-3 am. File #031148, Dec. 19, 2003; eff. March 13, 2004. 36-10-2 am. File #051174, Jan. 18, 2006; eff. April 5, 2006. 36-10-4 cr. File #061555, April 17, 2007; eff. July 3, 2007. 36-10-4 am. File #070201, May 30, 2007; eff. Aug. 15, 2007. 36-10-2 am. File #091068, Dec. 22, 2009; eff. March 10, 2010. 36-10-2 & 3 rc. File #111058, Dec. 20, 2011; eff. March 13, 2012. 36-10-2-b-3 rc. File #150113, June 6, 2015; eff. August 18, 2015.)
Source: City of Milwaukee Legislative Reference Bureau, Milwaukee City Charter and Code of Ordinances (city.milwaukee.gov master PDFs)URL: https://city.milwaukee.gov/ImageLibrary/Groups/ccClerk/Ordinances/City-Charter/CH36.pdf#page=65Fetched: 10/26/2026