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Subject:  Re: 457 exposure to creditors Date:  9/3/1998  12:01 PM
Author:  drioux Number:  5310 of 88492

Okay, I broke down and used the phone. I called the Public Employees Benefits Services Corporation (PEBSCo) which is the plan administrator for my wife's 457 deferred compensation program. According to the very helpful person at the other end of the line, legislation in the form of the Small Business Job Protection Act of 1996 signed by Bill Clinton *does* protect 457 accounts from creditors (both personal creditors and those to whom your employer is beholden). The Act requires plan administrators to set up custodial accounts with banks to enable this protection (e.g., Bank One of Columbus OH for PEBSCo accounts). All "units" (i.e., counties, municipalities, etc.) are supposed to be in compliance by Jan 1, 1999. I don't know if this satisfies your request for legal citation, but I did fire off an email to PEBSCo before talking to them on the phone so more info may be forthcoming. Hope this helps.
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