088.00.93 Ark. Code R. 001

Current through Register Vol. 49, No. 9, September, 2024

Rule 088.00.93-001 - Qualified Domestic Relations Orders for Active Members

QUALIFIED DOMESTIC RELATIONS ORDERS FOR ACTIVE MEMBERS

DEFINITIONS

(1) "Alternate payee" means a spouse, former spouse, child or other dependent of a participant under Arkansas law.

POLICIES

1. Qualified domestic relations orders issued by a chanceiy court of the State of Arkansas and which apply to a participant of the Teacher Retirement System (retirement plan) shall be accepted by the system, subject to the following restrictions:

(a) Benefits to the alternate payee shall begin when the participant retires, or ceases employment in a covered position and receives a refund of contributions.

(b) participants receiving disability benefits, as defined in Section 24-7-704 of the Arkansas Code of 1987, Annotated, from the retirement plan shall not be subject to quahfied domestic relations orders.

(c) Pursuant to Act 1143 of 1993, a model qualified domestic relations order is added as Addendum A to these policies. Any qualified domestic relation order issued by a chancery court must comply with the content of and substantially follow the form set out in the addendtim.

(d) When a quahfied domestic relations order is received by the retirement plan,

(1) the plan administrator shall promptly notify the participant and the alternate payee of the receipt of such order, and

(2) within a reasonable time after receipt of the order, determine whether the order is a qualified domestic relations order as set out in Addendum A to these policies and notify the participant and the alternate payee of such determination.

(e) Qualified domestic relations orders received prior to a participant's retirement or cessation of employment will be handled as set out in (d) above, but any amounts payable to the alternate payee will be held in the participant's account until due to be paid.

(f) Nothing contained in the qualified domestic relations order shall be construed to require the retirement plan to provide an alternate payee any type or form of benefit or option not otherwise available to the participant; to provide the alternate payee actuarial benefits not available to the participant; or to pay an benefits to the alternate payee which are required to be paid to another alternate payee under a previous quahfied domestic relations order.

(g) Should the alternate payee die prior to the receipt of benefits under the qualified domestic relations order, the entire amoimt due the alternate payee shall revert to the participant.

(h) Should the participant die prior to retirement, the alternate payee shall receive the same percentage of the participant's contributions, if any, as was awarded by the court in dividing the marital property. In no case shall be the alternate payee receive monthly benefits from the retirement plan.

(i) Monthly benefits paid the alternate payee shall be computed on the benefit formula in effect at the time of the participant's retirement, but shall include only service credit earned by the participant diaring the marital relationship.

(j) The retirement plan shall have the right to malte any necessary correction to the monthly benefit amount paid both to the participant and the alternate payee and to recover from either, or both, any overpayments made.

(k) If the alternate payee fails at any time to notify the retirement plan of any mailing address change, the retirement plan shall not be eligible for failure to malce the payments as due.

(l) Should the retirement plan determine that the alternate payee's monthly benefits are less than $20.00, the participant shall be paid the total benefit due and shall be responsible for paying the alternate payee the amoimt due.

(m) Qualified domestic relations order received by the retirement plan before the effective date of Act 1143 of 1993 may be honored but only if the participant or the alternate payee notifies the plan, and it is determined that the order is a quahfied order as set out in Addendiun A.

QUALIFIED DOMESTIC RELATIONS ORDERS FOR RETIRED MEMBERS

DEFINITIONS

(1) "Alternate payee" means a spouse, former spouse, child or other dependent of a participant under Arkansas law.

POLICIES

1. Qualified domestic relations orders issued by a chancery court of the State of Arkansas and which apply to a participant of the Teacher Retirement System (retirement plan) shall be accepted by the system, subject to the following restrictions:

(a) Participants receiving disability benefits, as defined in Section 24-7-704 of the Arkansas Code of 1987, Annotated, from the retirement plan shall not be subject to quahfied domestic relations orders.

(b) Pursuant to Act 1143 of 1993, a model quahfied dometic relations order is added as Addendum A to these policies. Any qualified domestic relation order issued by a chancery court must comply with the content of and substantially follow the form set out in the addendum.

(c) When a quahfied domestic relations order is received by the retirement plan,

(1) the plan administrator shall promptly notify the participant, and the alternate payee of the receipt of such order, and

(d) Nothing contained in the qualified domestic relations order shall be construed to require the retirement plan to provide an alternate payee any type or form of benefit or option not otherwise available to the participant; to provide the alternate payee actuarial benefits not available to the participant; or to pay an benefits to the alternate payee which are required to be paid to another alternate payee under a previous quahfied domestic relations order.

(e) Should the alternate payee die prior to the receipt of benefits under the qualified domestic relations order, the entire amount due the alternate payee shall revert to the participant.

(f) Should the participant die prior to retirement, the alternate payee shall receive the same percentage of the participant's contributions, if any, as was awarded by the court in dividing the marital property. In no case shall be the alternate payee receive monthly benefits from the retirement plan.

(g) The retirement plan shall have the right to malce any necessary correction to the monthly benefit amount paid both to the participant and the alternate payee and to recover from either, or both, any overpayments made.

(h) If the alternate payee fails at any time to notify the retirement plan of any mailing address change, the retirement plan shall not be liable for failure to malce the payments as due.

(i) Should the retirement plan determine that the alternate payee's monthly benefits are less than $20.00, the participant shall be paid the total benefit due and shall be responsible for paying the alternate payee the amount due.

(j) Qualified domestic relations order received by the retirement plan before the effective date of Act 1143 of 1993 may be honored but only if the participant or the alternate payee notifies the plan, and it is determined that the order is a quahfied order as set out in Addendiun A.

(k) During any period while it is being determined if the order is a qualified domestic relations order, the plan administrator shall separately account for the amounts which would have been payable to the alternate payee during that time.

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088.00.93 Ark. Code R. 001

10/14/1993