Subd. 1. Exemption; exceptions.

No money, annuity, or benefit provided for in this chapter is assignable or subject to any state estate tax, or to execution, levy, attachment, garnishment, or legal process, except as provided in subdivision 2 or section 518.58, 518.581, or 518.6111.

Subd. 2. Automatic deposits.

The association may remit, through an automatic deposit system, annuity, benefit, or refund payments only to a financial institution associated with the National Automated Clearinghouse Association or a comparable successor organization that is the trustee for a person eligible to receive the annuity, benefit, or refund. Upon the request of the retiree, disabilitant, survivor, or former member, the association may mail or send by electronic transfer the annuity, benefit, or refund check to the applicable financial institution for deposit in the person's account or joint account with a spouse. The association may prescribe the conditions under which such payment will be made.

Subd. 3. Payment to public bodies.

If in the judgment of the executive director conditions so warrant, payment may be made to a public body in behalf of an annuitant, disabilitant, or survivor upon such terms as the executive director may prescribe.