§17059. Qualified domestic relations orders








1. Determination by executive director. 
The executive director or the executive director's designee has exclusive authority
to determine whether a domestic relations order is a qualified domestic relations
order under this section. A determination by the executive director or the executive
director's designee under this section may be appealed to the board as provided by
section 17451.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








2. No jurisdiction over retirement system. 
The retirement system may not be made a party with respect to a divorce or other
domestic relations action in which an alternate payee's right to receive all or a
portion of the benefits payable to a member or retiree under the retirement system
is created or established. A party to such an action who attempts to make the retirement
system a party to the action contrary to this subsection is liable to the retirement
system for its costs and attorney's fees.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








3. Benefits and withdrawal of contributions. 
For the purposes of this section, benefits payable with respect to a member or retiree
under any of the programs of the retirement system include the types of benefits payable by the retirement system
and a withdrawal of contributions from the retirement system.


[
2007, c. 491, §71 (AMD)
.]








4. Requirements. 
A domestic relations order is a qualified domestic relations order only if the order:





A. Clearly specifies the name, social security number and last known mailing address,
if any, of the member or retiree and the name, social security number and mailing
address of each alternate payee covered by the order; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











B. Clearly specifies the amount or percentage of the member's or retiree's benefits
to be paid by the retirement system to each alternate payee or the manner in which
the amount or percentage is to be determined; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











C. Clearly specifies the number of payments or the period to which the order applies; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











D. Clearly specifies that the order applies to the retirement system; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











E. Does not require the retirement system to provide a type or form of benefit or an
option not otherwise provided by the retirement system; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











F. Does not require the retirement system to provide increased benefits determined
on the basis of actuarial value; [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











G. Does not require the payment of benefits to an alternate payee that are required
to be paid to another alternate payee under another order previously determined to
be a qualified domestic relations order; and [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











H. Does not require the payment of benefits to an alternate payee before the retirement
of a member other than when the payee reaches the member's normal retirement age, the distribution of a withdrawal of contributions to a member or other distribution
to a member required by law. [2015, c. 322, §1 (AMD).]







[
2015, c. 322, §1 (AMD)
.]








5. Additional criteria. 
The board may also require by rule that a qualified domestic relations order meet
one or more of the following requirements.





A. The order must provide for a proportional reduction of the amount awarded to an
alternate payee in the event of the retirement of the member before normal retirement
age. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











B. The order may not purport to require the designation of a particular person as the
recipient of benefits in the event of a member's or retiree's death. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











C. The order may not purport to require the selection of a particular benefit payment
plan or option. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











D. The order must provide clearly for each possible benefit distribution under plan
provisions. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











E. The order may not require any action on the part of the retirement system contrary
to its governing laws or plan provisions other than the direct payment of the benefit
awarded to an alternate payee or the direct payment of the benefit awarded to an alternate payee before the retirement
of a member and when the payee reaches the member's normal retirement age. [2015, c. 322, §2 (AMD).]










F. The order may not make the award of an interest contingent on any condition other
than those conditions resulting in the liability of the retirement system for payments
under its plan provisions. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











G. The order may not purport to award any future benefit increases that are provided
or required by the Legislature. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]











H. The order must provide for a proportional reduction of the amount awarded to an
alternate payee in the event that benefits available to the retiree or member are
reduced by law. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]








[
2015, c. 322, §2 (AMD)
.]








6. Determination. 
The executive director or the executive director's designee, upon receipt of a certified
copy of a domestic relations order and written request for a determination, shall
determine whether the order is a qualified domestic relations order and shall notify
the member or retiree and each alternate payee of the determination.





A. If the order is determined to be a qualified domestic relations order, it is presumed
to be in compliance with all requirements of this Part. The retirement system shall
pay benefits in accordance with the order and shall give effect to the plain meaning
of its terms notwithstanding any failure of the order to cite or reference statutory
or rule provisions. A beneficiary or recipient of a right or benefit provided for
or awarded in a qualified domestic relations order may not be deprived of that right
or benefit, or any part of that right or benefit, by a subsequent act or omission
of the member, another claimant or beneficiary or the retirement system, notwithstanding
any provision of law to the contrary or any policy or procedure the retirement system
employs in the implementation of this Part. [2005, c. 560, §2 (AMD); 2005, c. 560, §5 (AFF).]











B. If the order is determined not to be a qualified domestic relations order, the member
or retiree or any alternate payee named in the order may appeal the executive director's
determination in the manner specified in section 17451 or may petition the court that
issued the order to amend the order so that it is qualified. Except as otherwise
provided by law, the court that issued the order or that otherwise would have jurisdiction
over the matter has jurisdiction to amend the order so that it will be qualified even
though all other matters incident to the action or proceeding have been fully and
finally adjudicated. [1991, c. 746, §9 (NEW); 1991, c. 746, §10 (AFF).]








[
2005, c. 560, §2 (AMD);
2005, c. 560, §5 (AFF)
.]








7. Interim accounting. 
During any period in which the issue of whether a domestic relations order is a
qualified domestic relations order is being determined by the executive director,
the executive director's designee, the board, a court of competent jurisdiction or
otherwise, the retirement system shall account separately for the amounts, in this
section referred to as the "segregated amounts," that would have been payable to the
alternate payee during that period if the order had been determined to be a qualified
domestic relations order.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








8. Payment of segregated amounts. 
If a domestic relations order is determined to be a qualified domestic relations
order, the retirement system shall pay the segregated amounts to the person or persons
entitled to the segregated amounts and shall thereafter pay benefits pursuant to the
order.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








9. Payments if determined not qualified or if no determination within 18 months. 
If a domestic relations order is determined not to be a qualified domestic relations
order or if the issue as to whether a domestic relations order is a qualified domestic
relations order is not resolved within 18 months of the date the order and written
request for a determination are received by the retirement system, the retirement
system shall pay the segregated amounts without interest, and shall thereafter pay
benefits, to the person or persons who would have been entitled to such amounts if
there had been no order. This subsection may not be construed to limit or otherwise
affect any liability, responsibility or duty of a party with respect to any other
party to the action from which the order arose.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








10. Determination after 18 months. 
Any determination that an order is a qualified domestic relations order that is
made after the close of the 18-month period established in subsection 9 must be applied
prospectively only.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








11. No liability. 
The retirement system, the board and officers and employees of the retirement system
are not liable to any person for making payments of any benefits in accordance with
a domestic relations order in a cause of action in which a member or a retiree was
a party or for making payments in accordance with subsection 9.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








12. Information provided to spouse. 
Upon being furnished with an attested copy of a complaint for divorce, the retirement
system shall provide the spouse of a member with the same information that would be
provided to the member.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








13. Rules. 
The board may adopt rules to implement this section. The rules may provide for
charging a reasonable fee for processing domestic relations orders.


[
1991, c. 746, §9 (NEW);
1991, c. 746, §10 (AFF)
.]








14. Application. 
This section applies to all domestic relations orders issued after March 27, 1992
and, with the mutual consent of the parties, to any domestic relations orders issued
on or before March 27, 1992.


[
RR 1997, c. 2, §20 (COR)
.]





SECTION HISTORY

1991, c. 746, §9 (NEW).
1991, c. 746, §10 (AFF).
RR 1997, c. 2, §20 (COR).
2005, c. 560, §2 (AMD).
2005, c. 560, §5 (AFF).
2007, c. 491, §71 (AMD).
2015, c. 322, §§1, 2 (AMD).