Arizona Revised Statutes Title 38. Public Officers and Employees § 38-797.11. Exemptions from execution, attachment and taxation;  exception

A. The benefits, the employer and member contributions and the securities in the LTD trust fund established by § 38-797.02 are not subject to execution or attachment and are nonassignable except as specifically provided in this article or article 2 of this chapter.   1  The employer and member contributions and the securities in the LTD trust fund established by § 38-797.02 are exempt from state, county and municipal income taxes.  Benefits received by a member from the LTD program are subject to tax pursuant to title 43.   2

B. Interest, earnings and all other credits pertaining to benefits are not subject to execution or attachment and are nonassignable.