Illinois Code § 40 ILCS 5/13-805

Annuities and benefits exempt.
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All annuities and benefits
granted under this Article shall be exempt from attachment or garnishment
process and shall not be seized, taken, subjected to, detained, or levied
upon by virtue of any judgment, or any process or proceeding whatsoever
issued out of or by any court, for the payment and satisfaction in whole or
in part of any debt, damage, claim, demand, or judgment against any
annuitant or other beneficiary hereunder.

 
No annuitant or other beneficiary shall have any right to transfer or
assign an annuity or benefit or any part thereof, either by mortgage or
otherwise except that an annuitant who elects to participate in any group
hospital care plan or group medical or surgical plan shall have the right to
authorize the Board to deduct the cost of such plan from the annuity check
and to pay such deducted amount to the group insurance carrier; provided,
that the Board, in its discretion, may pay to the spouse of any annuitant,
or disability beneficiary, such amount from the annuity or disability
benefit as any court of competent jurisdiction may order, or as the Board
may consider necessary for the support of the spouse and children in the
event of the disappearance or unexplained absence of the annuitant, or
disability beneficiary, or of failure to support the spouse and children.

 
The Board may withhold from any future annuity or benefit payments such
amounts as it may in its discretion require for the purpose of repayment
into the Fund of any moneys paid to any annuitant, or disability beneficiary
through misrepresentation, fraud or error. The Board, and the members
thereof, and the Fund shall not be held liable for any amounts so withheld.

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