{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3122.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3122.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3122.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3122.1.html"}],"law_id":62935,"edition_id":1,"section_id":62935,"structure_id":14931,"section_number":"38.2-3122.1","catch_line":"Annuity contract purchased to fund retirement benefits; protection from creditor’s claims","history":"2018, c. 847.","full_text":"A\n\nAs used in this section:\n\t\t\t“Employer” means a person doing business in or operating within the Commonwealth who employs another to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. “Employer” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“ERISA” means the federal Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829), as amended.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA.B\n\nAny interest in or amounts payable to a participant or beneficiary from any allocated or unallocated group annuity contract issued or issued for delivery in the Commonwealth to an employer or a pension plan for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan, which retirement benefits were protected under ERISA or the Federal Pension Benefit Guaranty Corporation prior to the effective date of the group annuity contract and will not be protected under ERISA or the Federal Pension Benefit Guaranty Corporation on and after the effective date of the group annuity contract, shall be exempt from the claims of all creditors of such participant or beneficiary.C\n\nThe exemption from the claims of creditors provided under subsection B shall not apply to claims arising under a qualified domestic relations order.D\n\nThe exemption from the claims of creditors provided under subsection B shall not apply to any claim by a creditor with respect to an annuity contract that was taken out, made, or assigned in writing for the benefit of the creditor.E\n\nNotwithstanding the provisions of subsection B and subject to the applicable statute of limitations, the amount of any premiums or other amounts paid for the related annuity contract that were paid with the intent to defraud creditors, with the interest thereon, shall inure to the benefit of the creditors from the proceeds of the policy, contract, or deposit.F\n\nThe exemption provided by this section shall not apply to any protected annuity contract issued or effected during the six months preceding the date that the person claiming the exemption (i) files a voluntary petition in bankruptcy; (ii) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceeding; or (iii) files a petition or answer seeking for himself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation.","order_by":null,"text":{"0":{"id":229558,"text":"As used in this section:\n\t\t\t“Employer” means a person doing business in or operating within the Commonwealth who employs another to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. “Employer” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“ERISA” means the federal Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829), as amended.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":229559,"text":"Any interest in or amounts payable to a participant or beneficiary from any allocated or unallocated group annuity contract issued or issued for delivery in the Commonwealth to an employer or a pension plan for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan, which retirement benefits were protected under ERISA or the Federal Pension Benefit Guaranty Corporation prior to the effective date of the group annuity contract and will not be protected under ERISA or the Federal Pension Benefit Guaranty Corporation on and after the effective date of the group annuity contract, shall be exempt from the claims of all creditors of such participant or beneficiary.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":229560,"text":"The exemption from the claims of creditors provided under subsection B shall not apply to claims arising under a qualified domestic relations order.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":229561,"text":"The exemption from the claims of creditors provided under subsection B shall not apply to any claim by a creditor with respect to an annuity contract that was taken out, made, or assigned in writing for the benefit of the creditor.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":229562,"text":"Notwithstanding the provisions of subsection B and subject to the applicable statute of limitations, the amount of any premiums or other amounts paid for the related annuity contract that were paid with the intent to defraud creditors, with the interest thereon, shall inure to the benefit of the creditors from the proceeds of the policy, contract, or deposit.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":229563,"text":"The exemption provided by this section shall not apply to any protected annuity contract issued or effected during the six months preceding the date that the person claiming the exemption (i) files a voluntary petition in bankruptcy; (ii) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceeding; or (iii) files a petition or answer seeking for himself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14931,"edition_id":1,"name":"Proceeds of Certain Policies","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13292,"metadata":{},"date_created":"2026-06-26 03:50:52","date_modified":"2026-06-26 03:50:52","permalink":{"id":214461,"object_type":"structure","relational_id":14931,"identifier":"2","token":"38.2\/31\/2","url":"\/38.2\/31\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13292,"edition_id":1,"name":"Life Insurance","identifier":"31","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":214331,"object_type":"structure","relational_id":13292,"identifier":"31","token":"38.2\/31","url":"\/38.2\/31\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84737,"structure_id":14931,"section_number":"38.2-3118","catch_line":"Spendthrift trusts created under life insurance policies","url":"\/38.2-3118\/","token":"38.2\/31\/2\/38.2-3118","metadata":false},{"id":66383,"structure_id":14931,"section_number":"38.2-3119","catch_line":"Limitation on \u00a7 38.2-3118","url":"\/38.2-3119\/","token":"38.2\/31\/2\/38.2-3119","metadata":false},{"id":76489,"structure_id":14931,"section_number":"38.2-3120","catch_line":"Repealed","url":"\/38.2-3120\/","token":"38.2\/31\/2\/38.2-3120","metadata":false},{"id":56979,"structure_id":14931,"section_number":"38.2-3121","catch_line":"Segregation of proceeds not required","url":"\/38.2-3121\/","token":"38.2\/31\/2\/38.2-3121","metadata":false},{"id":83224,"structure_id":14931,"section_number":"38.2-3122","catch_line":"Proceeds and avails of life insurance policies and annuity contracts free of certain claims","url":"\/38.2-3122\/","token":"38.2\/31\/2\/38.2-3122","metadata":false},{"id":62935,"structure_id":14931,"section_number":"38.2-3122.1","catch_line":"Annuity contract purchased to fund retirement benefits; protection from creditor's claims","url":"\/38.2-3122.1\/","token":"38.2\/31\/2\/38.2-3122.1","metadata":false},{"id":79949,"structure_id":14931,"section_number":"38.2-3123","catch_line":"Repealed","url":"\/38.2-3123\/","token":"38.2\/31\/2\/38.2-3123","metadata":false},{"id":80079,"structure_id":14931,"section_number":"38.2-3124","catch_line":"Protection of insurers from creditor's claims","url":"\/38.2-3124\/","token":"38.2\/31\/2\/38.2-3124","metadata":false},{"id":77784,"structure_id":14931,"section_number":"38.2-3125","catch_line":"Other rights of beneficiaries and assignees protected","url":"\/38.2-3125\/","token":"38.2\/31\/2\/38.2-3125","metadata":false}],"previous_section":{"id":83224,"structure_id":14931,"section_number":"38.2-3122","catch_line":"Proceeds and avails of life insurance policies and annuity contracts free of certain claims","url":"\/38.2-3122\/","token":"38.2\/31\/2\/38.2-3122","metadata":false},"next_section":{"id":79949,"structure_id":14931,"section_number":"38.2-3123","catch_line":"Repealed","url":"\/38.2-3123\/","token":"38.2\/31\/2\/38.2-3123","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3122.1\/","history_text":"

This law was first created in 2018. The record of its establishment is cataloged in chapter 847<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":77784,"section_number":"38.2-3125","catch_line":"Other rights of beneficiaries and assignees protected","order_by":null,"url":"\/38.2-3125\/"}],"refers_to":false,"permalink":{"id":214483,"object_type":"law","relational_id":62935,"identifier":"38.2-3122.1","token":"38.2\/31\/2\/38.2-3122.1","url":"\/38.2-3122.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3122.1\/","token":"38.2\/31\/2\/38.2-3122.1","dublin_core":{"Title":"Annuity contract purchased to fund retirement benefits; protection from creditor’s claims","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3122.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Employer<\/span>” means a person<\/span> doing business in or operating within the Commonwealth who employs another to work for wages or a salary or on commission<\/span> and includes any similar entity acting directly or indirectly in the interest of an employer<\/span> in relation to an employee. “Employer<\/span>” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“ERISA<\/span>” means the federal Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829), as amended.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any interest in or amounts payable to a participant or beneficiary from any allocated or unallocated group annuity contract<\/span> issued or issued for delivery in the Commonwealth to an employer<\/span> or a pension plan for the purpose of providing retirement benefits to employees or retirees of the employer<\/span> under a defined benefit plan, which retirement benefits were protected under ERISA<\/span> or the Federal Pension Benefit Guaranty Corporation prior to the effective date of the group annuity contract<\/span> and will not be protected under ERISA<\/span> or the Federal Pension Benefit Guaranty Corporation on and after the effective date of the group annuity contract<\/span>, shall be exempt from the claims of all creditors<\/span> of such participant or beneficiary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The exemption from the claims of creditors<\/span> provided under subsection B shall not apply to claims arising under a qualified domestic relations order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The exemption from the claims of creditors<\/span> provided under subsection B shall not apply to any claim by a creditor<\/span> with respect to an annuity contract<\/span> that was taken out, made, or assigned in writing for the benefit of the creditor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Notwithstanding the provisions of subsection B and subject to the applicable statute of limitations<\/span>, the amount of any premiums or other amounts paid for the related annuity contract<\/span> that were paid with the intent<\/span> to defraud creditors<\/span>, with the interest thereon, shall inure to the benefit of the creditors<\/span> from the proceeds of the policy, contract<\/span>, or deposit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The exemption provided by this section shall not apply to any protected annuity contract<\/span> issued or effected during the six months preceding the date that the person<\/span> claiming the exemption (i) files a voluntary petition<\/span> in bankruptcy<\/span>; (ii) becomes the subject of an order<\/span> for relief or is declared insolvent in any federal or state<\/span> bankruptcy<\/span> or insolvency proceeding; or (iii) files a petition<\/span> or answer seeking for himself any reorganization, arrangement, composition, readjustment, liquidation<\/span>, dissolution, or similar relief under any statute, law<\/span>, or regulation. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nANNUITY CONTRACT PURCHASED TO FUND RETIREMENT BENEFITS; PROTECTION FROM\nCREDITOR’S CLAIMS (\u00a7 38.2-3122.1)\n\nA. As used in this section:\n\t\t\t“Employer” means a person doing business in or operating within\nthe Commonwealth who employs another to work for wages or a salary or on\ncommission and includes any similar entity acting directly or indirectly in the\ninterest of an employer in relation to an employee. “Employer” does\nnot include the Commonwealth or any of its agencies, institutions, or political\nsubdivisions or any public body.\n\t\t\t“ERISA” means the federal Employee Retirement Income Security Act\nof 1974 (P.L. 93-406, 88 Stat. 829), as amended.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in\n§ 3(2) of ERISA.\n\nB. Any interest in or amounts payable to a participant or beneficiary from any\nallocated or unallocated group annuity contract issued or issued for delivery in\nthe Commonwealth to an employer or a pension plan for the purpose of providing\nretirement benefits to employees or retirees of the employer under a defined\nbenefit plan, which retirement benefits were protected under ERISA or the\nFederal Pension Benefit Guaranty Corporation prior to the effective date of the\ngroup annuity contract and will not be protected under ERISA or the Federal\nPension Benefit Guaranty Corporation on and after the effective date of the\ngroup annuity contract, shall be exempt from the claims of all creditors of such\nparticipant or beneficiary.\n\nC. The exemption from the claims of creditors provided under subsection B shall\nnot apply to claims arising under a qualified domestic relations order.\n\nD. The exemption from the claims of creditors provided under subsection B shall\nnot apply to any claim by a creditor with respect to an annuity contract that\nwas taken out, made, or assigned in writing for the benefit of the creditor.\n\nE. Notwithstanding the provisions of subsection B and subject to the applicable\nstatute of limitations, the amount of any premiums or other amounts paid for the\nrelated annuity contract that were paid with the intent to defraud creditors,\nwith the interest thereon, shall inure to the benefit of the creditors from the\nproceeds of the policy, contract, or deposit.\n\nF. The exemption provided by this section shall not apply to any protected\nannuity contract issued or effected during the six months preceding the date\nthat the person claiming the exemption (i) files a voluntary petition in\nbankruptcy; (ii) becomes the subject of an order for relief or is declared\ninsolvent in any federal or state bankruptcy or insolvency proceeding; or (iii)\nfiles a petition or answer seeking for himself any reorganization, arrangement,\ncomposition, readjustment, liquidation, dissolution, or similar relief under any\nstatute, law, or regulation.\n\nHISTORY: 2018, c. 847.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}