Benefits and refunds payable by pension or retirement funds or systems and any assets of employees held by such funds or systems, and any monies an employee is required to pay to such funds or systems are exempt and are not subject to garnishment under Part 7 of Article XII of this Act.
12-704.Exemptions from garnishment.
Article XII. Judgments - Enforcement · Part 7. Garnishment · Not amended since adoption on record · Last verified July 20, 2026
In one sentencePension and retirement fund benefits, refunds, employee assets held by such funds, and required employee contributions are exempt from garnishment under this Part.
Full Text of 735 ILCS 5/12-704
Plain-English Summary
Section 12-704 carves pension and retirement money out of the reach of a Part 7 garnishment. It exempts benefits and refunds a pension or retirement fund or system owes, along with any assets of employees the fund or system holds, and any money an employee must pay into the fund or system.
The exemption is narrow but complete for the categories it lists. A creditor cannot use the non-wage garnishment procedure in this Part to seize a debtor's pension benefits, a refund due from a retirement system, assets the system is holding on the employee's behalf, or contributions the employee is required to make. Section 12-705's garnishment notice separately lists other exemptions, such as Social Security and public assistance benefits, that a judgment debtor can raise in that proceeding.
Frequently Asked Questions
Can a judgment creditor garnish a debtor's pension benefits in Illinois?
No. Section 12-704 exempts benefits and refunds payable by pension or retirement funds or systems from garnishment under Part 7.
Does the exemption cover money an employee has not yet received from a retirement fund?
Yes. It covers assets of employees held by the fund or system, not only benefits already payable.
Are an employee's required contributions into a retirement system protected too?
Yes. Section 12-704 exempts any money an employee is required to pay into a pension or retirement fund or system.
Where else does the garnishment statute list exemptions besides Section 12-704?
Section 12-705's garnishment notice lists further exemptions, including Social Security, public assistance, unemployment compensation, and other benefits a judgment debtor may claim.
Does Section 12-704 exempt every retirement account from every kind of debt collection?
It exempts the listed pension and retirement fund benefits, refunds, assets, and contributions specifically from garnishment brought under Part 7 of Article XII.
Amendment History
(Source: P.A. 83-707.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
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