ÿWPC— …# VUNa %¯ 0(µw@Ý4 1 @ U:H B‚ 0JÄ 0T 0^b 0hÀ 0r( 0|š 0† 0œ 1u, 0d¡ U>U*CB)mDC– AMÙë& Bv~.vÓ¬ D3 0@² AOòÆA 0D D/K Bz˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ BFGHUIJDKULUMÓ€Yz!3|xY`"Arial RegularC:\WPWIN60\TEMPLATE\STANDARD.WPT2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Arial% Line 7 d!!!!7Border 1dd€-"Cþÿ << Gÿÿ áÝ ƒ!ÝÔ€ÔÝ  ÝÔ€ ÔÔ€ ÔÓ  ÓÔ YYY ÔFILEDÔ€ XÔÌÌò òOctober€3,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€ ôÔAppellate€Court€Clerkó ó dPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  BA Op Geneva ÒÒ  BA Op Geneva Ò%%%%'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÓ  ÓÔ€ ÔÑ\R AØ'\ÑÑ7€  ¦ XXdædÈ7Ñà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌÌÌSUSAN€KAY€MALIK,à àà àà à)€€Ìà àà àà àà àà àà à)Ìà àà àó óPlaintiff/Appellee,à àà àò ò)€€Shelby€Chancery€No.€21988„1€R.D.Ìà àà àà àà àà àà à)ÌVS.à àà àà àà àà àà à)€€Appeal€No.€02A01„9604„CH„00070Ìà àà àà àà àà àà à)ÌKAFAIT€U.€MALIK,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àà àó óDefendant/Appellant.à àò ò)ó óÌÌÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€SHELBY€COUNTYÌÙ€€ÙßL€#$";+'h|à)` Å `€€Lßà@ àAT€MEMPHIS,€TENNESSEEÌà@ àTHE€HONORABLE€NEAL€SMALL,ÏCHANCELLORÌÌÌÌÌÌÌÌò òRUSSELL€C.€WINSTONÌó óMemphis,€TennesseeÌAttorney€for€AppellantÌÌÌò òJAMES€B.€FISHER,€JR.Ìó óMemphis,€TennesseeÌAttorney€for€AppelleeÌÌÌÌÌÌÌò òAFFIRMEDÌÌÌÌÌÌÌÌÌÌÌó óà àà àà àà àà àà àà àà àà àò òALAN€E.€HIGHERS,€J.ÌÌÌÌÌCONCUR:ÌÌDAVID€R.€FARMER,€J.ÌÌHOLLY€KIRBY€LILLARD,€J.ÌÌÑ7€  ¦ XXdæ XXdæ7Ñó óÓÓà àIn›€this€post„divorce€proceeding,€Kafait€U.€Malik€(ð ðhusbandðð)€appeals€from€theÏtrial€courtððs€judgment€ordering€him€to€cash€out€and/or€borrow€against€his€pension€andÏretirement€funds€in€order€to€satisfy€the€courtððs€prior€distribution€of€marital€property€toÏSusan€K.€Malik€(ð ðwifeðð).ÌÌà àIn€1993,€the€Chancery€Court€of€Shelby€County€entered€a€Final€Decree€ofÏDivorce€awarding€a€divorce€to€both€parties€on€grounds€of€inappropriate€maritalÏconduct.€€The€final€decree€awarded€wife€$750.00€a€month€for€60€months€asÏrehabilitative€alimony,€40%,€or€$24,400.00,€of€the€partiesðð€equity€in€the€maritalÏresidence,€and€40%€of€the€amounts€contained€in€husbandððs€retirement€and€pensionÏœaccounts.›ÌÌà àHusband€is€a€teacher€at€the€University€of€Tennessee.€€œAs›€an€employee€of€theÏState€of€Tennessee,€husband€participates€in€state€pension€and€retirement€plans.€€As€ofÏDecember€1992,€the€values€of€his€retirement€and€pension€accounts€were€as€follows:€€Ìà8 àà8 àCREF€Retirement€Account..............................$240,272.92Ìà8 àà8 àTIAA€Retirement€Account..................................$87,106.47Ìà8 àà8 àAetna€tax„deferred€annuity................................$34,039.61Ìà8 àà8 àHolden€Group€tax„deferred€annuity...................$21,444.77ÌÌà àA€Qualified€Domestic€Relations€Order€(QDRO)€was€entered€in€accordance€withÏthe€above€decree€and€forwarded€to€the€administrators€of€the€state€pension€andÏretirement€plans.€œUpon›€receipt€of€the€QDRO,€however,€counsel€for€the€TennesseeÏConsolidated€Retirement€System€forwarded€a€letter€to€wife€explaining€that€at€least€oneÏof€the€retirement€accounts€was€not€subject€to€division€and€award€pursuant€to€T.C.A.€ððÏ26„2„104,€which€provides:ÌÓÓà8 àà8 àò òState€pension€moneys,€certain€retirement€planÏfunds€or€assets,€exempt.ð!ð€ó ó(a)€All€moneys€received€by€aÏresident€of€the€state,€as€pension€from€the€state€ofÏTennessee,€or€any€subdivision€or€municipality€thereof,Ïbefore€receipt,€or€while€in€his€hands€or€upon€deposit€in€theÏbank,€shall€be€exempt€from€execution,€attachment€orÏgarnishment€other€than€an€order€for€assignment€of€supportÏissued€under€œðð€36„5„501›€whether€such€pensioner€is€theÏhead€of€a€family€or€not.€€ÌÌT.C.A.€œðð€26„2„104(a)›€(Supp.€œ1995).Ì›Ìà8 àà8 àÌœ›à àœÌÓÓ›à àThereafter,€in€1994,€wife€filed€a€petition€to€modify€the€final€decree,€arguing€thatÏthe€retirement€fund€was€subject€to€division€and€distribution€as€a€marital€asset.€œ€In›€theÏalternative,€she€argued€that€if€the€retirement€funds€were€exempt€from€distributionÏpursuant€to€T.C.A.€ðð€26„2„104(a),€husband€should€nevertheless€be€ordered€to€pay€herÏthe€value€of€40%€of€those€funds€from€another€source.€€œWife›€also€filed€a€motion€toÍamend€her€petition€to€add€the€following€parties€as€defendants:€the€Tennessee€StateÏTreasurer,€the€Tennessee€Consolidated€Retirement€System,€the€Attorney€General€ofÏthe€State€of€Tennessee,€and€Teachers€Insurance€and€Annuity€Association„CollegeÏRetirement€Systems€Equities€Fund.€€œThe›€trial€court€granted€wifeððs€motion€to€amend.€ÏœThese›€defendants€moved€to€dismiss€the€case€against€them€due€to€lack€of€subjectÏmatter€jurisdiction€on€grounds€that€T.C.A.€ðð€4„5„244€provides€that€only€the€DavidsonÏCounty€Chancery€Court€can€entertain€claims€against€state€agencies€that€challenge€theÏlegal€validity€of€a€statute.€€œWife›€subsequently€took€a€voluntary€non„suit€and€dismissalÏas€to€all€defendants€connected€with€the€state.€ÌÌà àFollowing€a€hearing€on€the€matter,€the€trial€judge€held€as€follows:ÌÓÓœ›à8 àà8 à2.€The€Court€finds€that€any€interpretation€of€TennesseeÏCode€Annotated€Section€26„2„104€that€would€result€inÏactually€depriving€the€Plaintiff€from€receiving€fromÏDefendant€an€amount€equal€to€40%€of€the€retirement€fundsÏaccumulated€during€the€marriage€plus€an€amount€equal€toÏactual€earnings€thereafter€would€be€unconscionable€andÏagainst€public€policy€and€that€said€statute€should€not€beÏinterpreted€in€such€a€manner€because€such€anÏinterpretation€would€render€said€statute€unconstitutional.€€InÏorder€to€accomplish€equity€and€justice€and€in€order€to€carryÏout€the€Courtððs€previous€award€to€Plaintiff€of€40%€of€allÏretirement€funds€accumulated€during€the€marriage€plus€anÏamount€equal€to€the€actual€earnings€of€said€fundsÏthereafter,€the€Court€orders€the€Defendant,€Kafait€U.€Malik,Ïto€pay€to€the€Plaintiff,€Susan€K.€Malik,€an€amount€equal€toÏ40%€of€the€amounts€in€all€of€the€Defendantððs€TIAAÏRetirement€Account,€CREF€Retirement€Account,€Aetna€Tax„Deferred€Annuity,€Holden€Group€Tax„Deferred€Annuity€andÏother€retirement€funds€accumulated€during€the€partiesððÏmarriage....Ìà8 àà8 à3.€Defendant,€Kafait€U.€Malik,€is€hereby€ordered€to€cash€outÏentirely€as€soon€as€possible€the€funds€and€money€now€inÍDefendantððs€Aetna€Tax„Deferred€Annuity€and€DefendantððsÏHolden€Group€Tax„Deferred€Annuity€and€to€turn€over€toÏPlaintiff,€Susan€Malik,€by€mailing€all€of€said€funds€to€herÏattorneyððs€office€as€soon€as€possible.€€Upon€receipt€of€saidÏfunds€by€Plaintiffððs€attorney,€Defendant€shall€be€given€creditÏfor€said€payment.€€Defendant€shall€do€all€of€the€above€asÏsoon€as€possible€and€shall€not€delay€for€any€reason.Ìà8 àà8 à4.€Defendant,€Kafait€U.€Malik,€is€hereby€ordered€to€borrowÏagainst€and€cash€out€to€the€fullest€extent€possible€as€soonÏas€possible€the€funds€and€money€now€in€Defendantððs€TIAAÏRetirement€Account€and€CREF€Retirement€Account,€to€theÏextent€necessary€to€pay€the€remaining€balance€owed€on€theÏabove„described€judgment€which€is€owed€by€Defendant€toÏPlaintiff€as€set€forth€above€in€this€Order.€€Defendant,€KafaitÏU.€Malik,€shall€pay€said€funds€to€Plaintiff,€Susan€K.€Malik,€asÏsoon€as€possible€without€delay€by€mailing€the€specifiedÏamount€to€Plaintiffððs€attorney....Ìà8 àà8 à5.€The€Court€finds€that€the€above„described€TIAAÏRetirement€Account€had€a€value€of€$87,106.47€as€ofÏDecember€15,€1992,€the€above„described€CREF€RetirementÏAccount€had€a€value€of€$240,272.92€as€of€December€15,Ï1992,€the€above„described€Holden€Group€Tax„DeferredÏAnnuity€had€a€value€of€$21,444.77€as€of€December€8,€1992,Ïand€the€above„described€Aetna€Tax„Deferred€Annuity€had€aÏvalue€of€$34,039.61€as€of€December€œ21,1992....›œÌ›ÌÓÓœ›à àÌœ›à àHusbandððs€first€contention€on€appeal€is€that€wife,€by€adding€the€state„relatedÏparty€defendants,€was€in€effect,€seeking€a€declaratory€judgment€as€to€theÏconstitutionality€of€certain€statutes.€€Because€she€did€not€comply€with€the€proceduralÏrequisites€for€maintaining€such€an€action,€husband€asserts,€the€trial€court€lackedÏjurisdiction€to€modify€the€final€decree.€€This€contention€is€without€merit.€€The€presentÏcase€is€clearly€not€a€suit€for€declaratory€judgment.€€Furthermore,€any€and€allÏdefendants€connected€with€the€state€of€Tennessee€were€voluntarily€dismissed€from€theÏsuit,€and€the€trial€courtððs€final€order€is€directed€only€to€husband.ÌÌà àHusbandððs€second€contention€on€appeal€is€that€the€trial€court€erred€in€orderingÏhim€to€cash€out€the€funds€in€his€two€annuity€accounts€because€the€accounts€are€part€ofÏhis€Optional€Retirement€Program€and€as€such,€are€exempt€from€execution€or€any€otherÏprocess€pursuant€to€T.C.A.€ðððð€36„5„501,€8„36„111,€and€26„2„104.€€€Husband€concedesÏthat€the€pension€funds€are€martial€assets.€€However,€husband€points€out,€the€funds€areÏexempt€from€judicial€process€and€there€are€no€other€assets€from€which€to€make€aÏproperty€division.€Wife€responds€that€the€trial€courtððs€judgment€did€not€contravene€theÏstatute€because€the€order€was€directed€solely€to€husband,€rather€than€to€the€state€or€itsÏagencies.ÌÌà àAfter€researching€applicable€law,€we€find€the€case€of€òòBoyd€v.€Boydóó,€No.€02A01„9210„CH„00294,€1993€WL€8379€(Tenn.€App.€Jan.€20,€1993),€to€be€persuasive€on€thisÏissue.€€In€òòBoydóó,€the€husband,€a€state€employee,€raised€the€same€argument€thatÏhusband€raised€in€the€case€òòsub€judiceóó„„that€T.C.A.€ðð€26„2„104(a)€prohibited€the€courtÏfrom€awarding€to€the€wife€any€of€his€state€retirement€benefits.€€òòId.óó€at€*2.€€The€court€notedÏthat€pursuant€to€T.C.A.€ðð€36„4„121,€marital€property€includes€the€value€of€a€vestedÏpension€or€retirement€benefit.€€However,€the€court€in€òòBoydóó€also€recognized€that€T.C.A.Ïðð€26„2„104(a)€ð ðclearly€renders€exempt€from€execution,€attachment€or€garnishment€allÏmoney€received€by€a€resident...as€a€pension€from€the€State€of€Tennessee.ðð€€òòId.óó€at€*2.€€InÏreconciling€the€two€provisions,€the€court€stated:ÌÓÓà8 àà8 à[W]e€do€not€construe€the€statute€to€mean€that€the€court€in€aÏdivorce€action€is€prohibited€from€making€an€award€to€theÏother€spouse.€€T.C.A.€Sec.€36„4„121(b)(1)(B)€does€notÍexclude€a€state€employeeððs€pension€plan€from€the€definitionÏof€marital€property.ÌòòId.óó€ÌÌÓÓAccordingly,€the€court€in€òòBoydóó€upheld€the€trial€courtððs€judgment€ordering€husband€toÏpay€his€retirement€benefits€to€wife€within€15€days€of€his€receipt€of€each€retirementÏcheck.€€òòId.óóÌÌà àWe€agree€with€both€the€analysis€and€the€conclusion€of€the€òòBoydóó€decision.€ÏTennessee€Code€Annotated€ðð€26„2„104(a)€prohibits€the€ð ðexecution,€attachment,€orÏgarnishmentðð€of€state€pension€funds.€€In€this€case,€however,€the€trial€court€orderedÏhusband€to€cash€out€and/or€borrow€against€such€funds.€€Thus,€the€funds€were€notÏsubject€to€ð ðexecution,€attachment,€or€garnishment,ðð€or€any€other€judicial€process.€ÌÌà àœÌÌÌÌÌà àIn›€accordance€with€the€foregoing€opinion,€the€judgment€of€the€trial€court€isÏaffirmed.€€Costs€on€appeal€are€taxed€against€œappellant.ÌÌÓÓÌà àà àà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ïóóà àà àà àà àà àà àà àà àHIGHERS,€J.ÌÌÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌFARMER,€J.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌLILLARD,€J.€›