| 47 | 48 | | |
|---|
| 48 | 49 | | |
|---|
| 49 | 50 | | |
|---|
| 50 | 51 | | |
|---|
| 51 | 52 | | |
|---|
| 52 | 53 | | An Act |
|---|
| 53 | 54 | | |
|---|
| 54 | 55 | | |
|---|
| 55 | 56 | | |
|---|
| 56 | 57 | | amending sections 38-773, 38-822, 38-860 and 38-910, Arizona Revised Statutes; relating to state retirement plans. |
|---|
| 57 | 58 | | |
|---|
| 58 | 59 | | |
|---|
| 59 | 60 | | |
|---|
| 60 | 61 | | |
|---|
| 61 | 62 | | |
|---|
| 62 | 63 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
|---|
| 63 | 64 | | |
|---|
| 64 | 65 | | |
|---|
| 65 | 66 | | |
|---|
| 66 | 67 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 38-773, Arizona Revised Statutes, is amended to read: START_STATUTE38-773. Benefit payments to alternate payee under acceptable domestic relations order; termination of marriage; revocation of beneficiary designation; definitions A. The board shall review any domestic relations order to which a member is a party and that is submitted to the board to determine if the domestic relations order is acceptable under this section. After a determination that a domestic relations order is acceptable under this section, the board shall notify the member and the named alternate payee of its the board's acceptance of the domestic relations order, and ASRS shall pay benefits in accordance with the applicable requirements of the order. B. An acceptable domestic relations order shall: 1. Not require the board to provide any type, form or time of payment of severance, survivor or retirement benefits or any severance, survivor or retirement benefit option that is not provided under this article. 2. Value the member's benefit on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. C. An acceptable domestic relations order shall specify all of the following: 1. The name and last known mailing address of the member. 2. The name and last known mailing address of each alternate payee who is covered by the order. 3. The method of determining the amount of the member's severance, survivor or retirement benefits to be paid by ASRS to each alternate payee covered by the order. 4. The number of payments or period to which the order applies. D. Except as provided by the express terms of a domestic relations order, the divorce or annulment of a member's marriage revokes any revocable: 1. Disposition or appointment of benefits made by a divorced member to that member's former spouse or to a relative of the divorced member's former spouse in an instrument executed by the member before the divorce or annulment of the member's marriage to the former spouse. 2. Provision in an instrument executed by the member before the divorce or annulment of the member's marriage to the former spouse conferring any power or right on the divorced member's former spouse or on a relative of the divorced member's former spouse. E. ASRS shall give effect to provisions of an instrument executed by a member before the divorce or annulment of the member's marriage to a former spouse as follows: 1. In the case of disposition or appointment of benefits, as if the former spouse and relatives of the former spouse disclaimed all provisions revoked by this section. 2. In the case of a revoked power or right, as if the former spouse and relatives of the former spouse died immediately before the divorce or annulment. F. Provisions of an instrument revoked solely as provided by this section are revived by the divorced member's remarriage to the former spouse or by a nullification of the member's divorce or annulment. G. If an alternate payee predeceases the member, amounts payable to the alternate payee cease on the death of the alternate payee. ASRS shall cause the amount formerly payable to the alternate payee to revert to the member. H. For the purposes of this section: 1. "Domestic relations order" means any judgment, decree, order or approval of a property settlement agreement entered in a court of competent jurisdiction that: (a) Relates to marital property rights of a spouse or former spouse. (b) Creates or recognizes in the spouse or former spouse the existence of an alternate payee's right to severance, survivor or retirement benefits. (c) Assigns the spouse or former spouse as alternate payee the right to receive all or part of the severance, survivor or retirement benefits payable to the member. 2. "Relative of the divorced member's former spouse" means a person who is related to the divorced member's former spouse by blood, adoption or affinity and who, after the divorce or annulment, is not related to the divorced member by blood, adoption or affinity. END_STATUTE Sec. 2. Section 38-822, Arizona Revised Statutes, is amended to read: START_STATUTE38-822. Domestic relations orders; procedures; payments A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the plan that would otherwise be payable to that participant shall instead be paid by the plan to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. B. A domestic relations order is not effective against the plan unless the domestic relations order is approved by the plan and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the plan to the alternate payee or the precise manner in which the amount or percentage is to be determined. 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. 4. The domestic relations order shall state that the domestic relations order applies to the plan. 5. The domestic relations order shall not require the plan to provide any type or form of benefit or any option not otherwise provided by this article. 6. The domestic relations order shall not require the plan to provide increased benefits determined on the basis of actuarial value. 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. C. On receipt by the plan of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the plan shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. D. The plan has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the plan can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the plan determines the domestic relations order is a plan approved domestic relations order, the plan shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the plan determines the domestic relations order fails to qualify as a plan approved domestic relations order, the plan shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the plan can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the plan shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the plan shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the plan shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the plan that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the plan. E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any participant or alternate payee. The plan has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the plan. If the address of an alternate payee is unknown to the plan, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the plan shall either: 1. Hold the alternate payee's portion until such a time as the alternate payee provides the plan with a current address. Once the plan is notified of the alternate payee's current address, the plan shall prospectively pay the alternate payee's portion to the alternate payee. 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. F. If the address of a participant is unknown to the plan, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the plan shall hold the participant's portion until the participant provides the plan with a current address. G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the plan shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any personal representative. The plan is not responsible for making benefit payments to a personal representative until the personal representative has both: 1. Persuaded the plan that the personal representative is authorized to receive payments designated for the deceased alternate payee. 2. Provided the plan with an address to which the payments should be sent. H. If, within thirty days after the date the plan verifies an alternate payee's death, a personal representative does not make demand on the plan for the alternate payee's portion, the plan shall either: 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the plan to the participant to the personal representative. Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. J. The plan is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the plan pursuant to this section. If one or more payments are made by the plan to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. K. The plan may adopt policies and procedures that govern the implementation of this section. END_STATUTE Sec. 3. Section 38-860, Arizona Revised Statutes, is amended to read: START_STATUTE38-860. Domestic relations orders; procedures; payments A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the system that would otherwise be payable to that participant shall instead be paid by the system to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. B. A domestic relations order is not effective against the system unless the domestic relations order is approved by the system and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the system to the alternate payee or the precise manner in which the amount or percentage is to be determined. 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. 4. The domestic relations order shall state that the domestic relations order applies to the system. 5. The domestic relations order shall not require the system to provide any type or form of benefit or any option not otherwise provided by this article. 6. The domestic relations order shall not require the system to provide increased benefits determined on the basis of actuarial value. 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. C. On receipt by the system of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the system shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. D. The system has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the system can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the system shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the system determines the domestic relations order is a plan approved domestic relations order, the system shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the system determines the domestic relations order fails to qualify as a plan approved domestic relations order, the system shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the system can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the system shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the system shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the system shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the system shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the system that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the system. E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the system. The system has no duty to attempt to locate any participant or alternate payee. The system has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the system. If the address of an alternate payee is unknown to the system, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the system shall either: 1. Hold the alternate payee's portion until such a time as the alternate payee provides the system with a current address. Once the system is notified of the alternate payee's current address, the system shall prospectively pay the alternate payee's portion to the alternate payee. 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. F. If the address of a participant is unknown to the system, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the system shall hold the participant's portion until the participant provides the system with a current address. G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the system shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the system. The system has no duty to attempt to locate any personal representative. The system is not responsible for making benefit payments to a personal representative until the personal representative has both: 1. Persuaded the system that the personal representative is authorized to receive payments designated for the deceased alternate payee. 2. Provided the system with an address to which the payments should be sent. H. If, within thirty days after the date the system verifies an alternate payee's death, a personal representative does not make demand on the system for the alternate payee's portion, the system shall either: 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the system to the participant to the personal representative. Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. J. The system is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the system pursuant to this section. If one or more payments are made by the system to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. K. The system may adopt policies and procedures that govern the implementation of this section. END_STATUTE Sec. 4. Section 38-910, Arizona Revised Statutes, is amended to read: START_STATUTE38-910. Domestic relations orders; procedures; payments A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the plan that would otherwise be payable to that participant shall instead be paid by the plan to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. B. A domestic relations order is not effective against the plan unless the domestic relations order is approved by the plan and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the plan to the alternate payee or the precise manner in which the amount or percentage is to be determined. 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. 4. The domestic relations order shall state that the domestic relations order applies to the plan. 5. The domestic relations order shall not require the plan to provide any type or form of benefit or any option not otherwise provided by this article. 6. The domestic relations order shall not require the plan to provide increased benefits determined on the basis of actuarial value. 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. C. On receipt by the plan of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the plan shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. D. The plan has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the plan can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the plan determines the domestic relations order is a plan approved domestic relations order, the plan shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the plan determines the domestic relations order fails to qualify as a plan approved domestic relations order, the plan shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the plan can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the plan shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the plan shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the plan shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the plan that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the plan. E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any participant or alternate payee. The plan has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the plan. If the address of an alternate payee is unknown to the plan, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the plan shall either: 1. Hold the alternate payee's portion until such a time as the alternate payee provides the plan with a current address. Once the plan is notified of the alternate payee's current address, the plan shall prospectively pay the alternate payee's portion to the alternate payee. 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. F. If the address of a participant is unknown to the plan, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the plan shall hold the participant's portion until the participant provides the plan with a current address. G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the plan shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any personal representative. The plan is not responsible for making benefit payments to a personal representative until the personal representative has both: 1. Persuaded the plan that the personal representative is authorized to receive payments designated for the deceased alternate payee. 2. Provided the plan with an address to which the payments should be sent. H. If, within thirty days after the date the plan verifies an alternate payee's death, a personal representative does not make demand on the plan for the alternate payee's portion, the plan shall either: 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the plan to the participant to the personal representative. Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. J. The plan is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the plan pursuant to this section. If one or more payments are made by the plan to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. K. The plan may adopt policies and procedures that govern the implementation of this section. END_STATUTE |
|---|
| 67 | 68 | | |
|---|
| 68 | 69 | | Be it enacted by the Legislature of the State of Arizona: |
|---|
| 69 | 70 | | |
|---|
| 70 | 71 | | Section 1. Section 38-773, Arizona Revised Statutes, is amended to read: |
|---|
| 71 | 72 | | |
|---|
| 72 | 73 | | START_STATUTE38-773. Benefit payments to alternate payee under acceptable domestic relations order; termination of marriage; revocation of beneficiary designation; definitions |
|---|
| 73 | 74 | | |
|---|
| 74 | 75 | | A. The board shall review any domestic relations order to which a member is a party and that is submitted to the board to determine if the domestic relations order is acceptable under this section. After a determination that a domestic relations order is acceptable under this section, the board shall notify the member and the named alternate payee of its the board's acceptance of the domestic relations order, and ASRS shall pay benefits in accordance with the applicable requirements of the order. |
|---|
| 75 | 76 | | |
|---|
| 76 | 77 | | B. An acceptable domestic relations order shall: |
|---|
| 77 | 78 | | |
|---|
| 78 | 79 | | 1. Not require the board to provide any type, form or time of payment of severance, survivor or retirement benefits or any severance, survivor or retirement benefit option that is not provided under this article. |
|---|
| 79 | 80 | | |
|---|
| 80 | 81 | | 2. Value the member's benefit on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. |
|---|
| 81 | 82 | | |
|---|
| 82 | 83 | | C. An acceptable domestic relations order shall specify all of the following: |
|---|
| 83 | 84 | | |
|---|
| 84 | 85 | | 1. The name and last known mailing address of the member. |
|---|
| 85 | 86 | | |
|---|
| 86 | 87 | | 2. The name and last known mailing address of each alternate payee who is covered by the order. |
|---|
| 87 | 88 | | |
|---|
| 88 | 89 | | 3. The method of determining the amount of the member's severance, survivor or retirement benefits to be paid by ASRS to each alternate payee covered by the order. |
|---|
| 89 | 90 | | |
|---|
| 90 | 91 | | 4. The number of payments or period to which the order applies. |
|---|
| 91 | 92 | | |
|---|
| 92 | 93 | | D. Except as provided by the express terms of a domestic relations order, the divorce or annulment of a member's marriage revokes any revocable: |
|---|
| 93 | 94 | | |
|---|
| 94 | 95 | | 1. Disposition or appointment of benefits made by a divorced member to that member's former spouse or to a relative of the divorced member's former spouse in an instrument executed by the member before the divorce or annulment of the member's marriage to the former spouse. |
|---|
| 95 | 96 | | |
|---|
| 96 | 97 | | 2. Provision in an instrument executed by the member before the divorce or annulment of the member's marriage to the former spouse conferring any power or right on the divorced member's former spouse or on a relative of the divorced member's former spouse. |
|---|
| 97 | 98 | | |
|---|
| 98 | 99 | | E. ASRS shall give effect to provisions of an instrument executed by a member before the divorce or annulment of the member's marriage to a former spouse as follows: |
|---|
| 99 | 100 | | |
|---|
| 100 | 101 | | 1. In the case of disposition or appointment of benefits, as if the former spouse and relatives of the former spouse disclaimed all provisions revoked by this section. |
|---|
| 101 | 102 | | |
|---|
| 102 | 103 | | 2. In the case of a revoked power or right, as if the former spouse and relatives of the former spouse died immediately before the divorce or annulment. |
|---|
| 103 | 104 | | |
|---|
| 104 | 105 | | F. Provisions of an instrument revoked solely as provided by this section are revived by the divorced member's remarriage to the former spouse or by a nullification of the member's divorce or annulment. |
|---|
| 105 | 106 | | |
|---|
| 106 | 107 | | G. If an alternate payee predeceases the member, amounts payable to the alternate payee cease on the death of the alternate payee. ASRS shall cause the amount formerly payable to the alternate payee to revert to the member. |
|---|
| 107 | 108 | | |
|---|
| 108 | 109 | | H. For the purposes of this section: |
|---|
| 109 | 110 | | |
|---|
| 110 | 111 | | 1. "Domestic relations order" means any judgment, decree, order or approval of a property settlement agreement entered in a court of competent jurisdiction that: |
|---|
| 111 | 112 | | |
|---|
| 112 | 113 | | (a) Relates to marital property rights of a spouse or former spouse. |
|---|
| 113 | 114 | | |
|---|
| 114 | 115 | | (b) Creates or recognizes in the spouse or former spouse the existence of an alternate payee's right to severance, survivor or retirement benefits. |
|---|
| 115 | 116 | | |
|---|
| 116 | 117 | | (c) Assigns the spouse or former spouse as alternate payee the right to receive all or part of the severance, survivor or retirement benefits payable to the member. |
|---|
| 117 | 118 | | |
|---|
| 118 | 119 | | 2. "Relative of the divorced member's former spouse" means a person who is related to the divorced member's former spouse by blood, adoption or affinity and who, after the divorce or annulment, is not related to the divorced member by blood, adoption or affinity. END_STATUTE |
|---|
| 119 | 120 | | |
|---|
| 120 | 121 | | Sec. 2. Section 38-822, Arizona Revised Statutes, is amended to read: |
|---|
| 121 | 122 | | |
|---|
| 122 | 123 | | START_STATUTE38-822. Domestic relations orders; procedures; payments |
|---|
| 123 | 124 | | |
|---|
| 124 | 125 | | A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the plan that would otherwise be payable to that participant shall instead be paid by the plan to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. |
|---|
| 125 | 126 | | |
|---|
| 126 | 127 | | B. A domestic relations order is not effective against the plan unless the domestic relations order is approved by the plan and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: |
|---|
| 127 | 128 | | |
|---|
| 128 | 129 | | 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. |
|---|
| 129 | 130 | | |
|---|
| 130 | 131 | | 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the plan to the alternate payee or the precise manner in which the amount or percentage is to be determined. |
|---|
| 131 | 132 | | |
|---|
| 132 | 133 | | 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. |
|---|
| 133 | 134 | | |
|---|
| 134 | 135 | | 4. The domestic relations order shall state that the domestic relations order applies to the plan. |
|---|
| 135 | 136 | | |
|---|
| 136 | 137 | | 5. The domestic relations order shall not require the plan to provide any type or form of benefit or any option not otherwise provided by this article. |
|---|
| 137 | 138 | | |
|---|
| 138 | 139 | | 6. The domestic relations order shall not require the plan to provide increased benefits determined on the basis of actuarial value. |
|---|
| 139 | 140 | | |
|---|
| 140 | 141 | | 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. |
|---|
| 141 | 142 | | |
|---|
| 142 | 143 | | 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. |
|---|
| 143 | 144 | | |
|---|
| 144 | 145 | | C. On receipt by the plan of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the plan shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. |
|---|
| 145 | 146 | | |
|---|
| 146 | 147 | | D. The plan has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the plan can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the plan determines the domestic relations order is a plan approved domestic relations order, the plan shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the plan determines the domestic relations order fails to qualify as a plan approved domestic relations order, the plan shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the plan can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the plan shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the plan shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the plan shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the plan that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the plan. |
|---|
| 147 | 148 | | |
|---|
| 148 | 149 | | E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any participant or alternate payee. The plan has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the plan. If the address of an alternate payee is unknown to the plan, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the plan shall either: |
|---|
| 149 | 150 | | |
|---|
| 150 | 151 | | 1. Hold the alternate payee's portion until such a time as the alternate payee provides the plan with a current address. Once the plan is notified of the alternate payee's current address, the plan shall prospectively pay the alternate payee's portion to the alternate payee. |
|---|
| 151 | 152 | | |
|---|
| 152 | 153 | | 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. |
|---|
| 153 | 154 | | |
|---|
| 154 | 155 | | F. If the address of a participant is unknown to the plan, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the plan shall hold the participant's portion until the participant provides the plan with a current address. |
|---|
| 155 | 156 | | |
|---|
| 156 | 157 | | G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the plan shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any personal representative. The plan is not responsible for making benefit payments to a personal representative until the personal representative has both: |
|---|
| 157 | 158 | | |
|---|
| 158 | 159 | | 1. Persuaded the plan that the personal representative is authorized to receive payments designated for the deceased alternate payee. |
|---|
| 159 | 160 | | |
|---|
| 160 | 161 | | 2. Provided the plan with an address to which the payments should be sent. |
|---|
| 161 | 162 | | |
|---|
| 162 | 163 | | H. If, within thirty days after the date the plan verifies an alternate payee's death, a personal representative does not make demand on the plan for the alternate payee's portion, the plan shall either: |
|---|
| 163 | 164 | | |
|---|
| 164 | 165 | | 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. |
|---|
| 165 | 166 | | |
|---|
| 166 | 167 | | 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the plan to the participant to the personal representative. |
|---|
| 167 | 168 | | |
|---|
| 168 | 169 | | Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. |
|---|
| 169 | 170 | | |
|---|
| 170 | 171 | | I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. |
|---|
| 171 | 172 | | |
|---|
| 172 | 173 | | J. The plan is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the plan pursuant to this section. If one or more payments are made by the plan to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. |
|---|
| 173 | 174 | | |
|---|
| 174 | 175 | | K. The plan may adopt policies and procedures that govern the implementation of this section. END_STATUTE |
|---|
| 175 | 176 | | |
|---|
| 176 | 177 | | Sec. 3. Section 38-860, Arizona Revised Statutes, is amended to read: |
|---|
| 177 | 178 | | |
|---|
| 178 | 179 | | START_STATUTE38-860. Domestic relations orders; procedures; payments |
|---|
| 179 | 180 | | |
|---|
| 180 | 181 | | A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the system that would otherwise be payable to that participant shall instead be paid by the system to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. |
|---|
| 181 | 182 | | |
|---|
| 182 | 183 | | B. A domestic relations order is not effective against the system unless the domestic relations order is approved by the system and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: |
|---|
| 183 | 184 | | |
|---|
| 184 | 185 | | 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. |
|---|
| 185 | 186 | | |
|---|
| 186 | 187 | | 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the system to the alternate payee or the precise manner in which the amount or percentage is to be determined. |
|---|
| 187 | 188 | | |
|---|
| 188 | 189 | | 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. |
|---|
| 189 | 190 | | |
|---|
| 190 | 191 | | 4. The domestic relations order shall state that the domestic relations order applies to the system. |
|---|
| 191 | 192 | | |
|---|
| 192 | 193 | | 5. The domestic relations order shall not require the system to provide any type or form of benefit or any option not otherwise provided by this article. |
|---|
| 193 | 194 | | |
|---|
| 194 | 195 | | 6. The domestic relations order shall not require the system to provide increased benefits determined on the basis of actuarial value. |
|---|
| 195 | 196 | | |
|---|
| 196 | 197 | | 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. |
|---|
| 197 | 198 | | |
|---|
| 198 | 199 | | 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. |
|---|
| 199 | 200 | | |
|---|
| 200 | 201 | | C. On receipt by the system of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the system shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. |
|---|
| 201 | 202 | | |
|---|
| 202 | 203 | | D. The system has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the system can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the system shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the system determines the domestic relations order is a plan approved domestic relations order, the system shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the system determines the domestic relations order fails to qualify as a plan approved domestic relations order, the system shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the system can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the system shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the system shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the system shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the system shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the system that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the system. |
|---|
| 203 | 204 | | |
|---|
| 204 | 205 | | E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the system. The system has no duty to attempt to locate any participant or alternate payee. The system has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the system. If the address of an alternate payee is unknown to the system, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the system shall either: |
|---|
| 205 | 206 | | |
|---|
| 206 | 207 | | 1. Hold the alternate payee's portion until such a time as the alternate payee provides the system with a current address. Once the system is notified of the alternate payee's current address, the system shall prospectively pay the alternate payee's portion to the alternate payee. |
|---|
| 207 | 208 | | |
|---|
| 208 | 209 | | 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. |
|---|
| 209 | 210 | | |
|---|
| 210 | 211 | | F. If the address of a participant is unknown to the system, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the system shall hold the participant's portion until the participant provides the system with a current address. |
|---|
| 211 | 212 | | |
|---|
| 212 | 213 | | G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the system shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the system. The system has no duty to attempt to locate any personal representative. The system is not responsible for making benefit payments to a personal representative until the personal representative has both: |
|---|
| 213 | 214 | | |
|---|
| 214 | 215 | | 1. Persuaded the system that the personal representative is authorized to receive payments designated for the deceased alternate payee. |
|---|
| 215 | 216 | | |
|---|
| 216 | 217 | | 2. Provided the system with an address to which the payments should be sent. |
|---|
| 217 | 218 | | |
|---|
| 218 | 219 | | H. If, within thirty days after the date the system verifies an alternate payee's death, a personal representative does not make demand on the system for the alternate payee's portion, the system shall either: |
|---|
| 219 | 220 | | |
|---|
| 220 | 221 | | 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. |
|---|
| 221 | 222 | | |
|---|
| 222 | 223 | | 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the system to the participant to the personal representative. |
|---|
| 223 | 224 | | |
|---|
| 224 | 225 | | Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. |
|---|
| 225 | 226 | | |
|---|
| 226 | 227 | | I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. |
|---|
| 227 | 228 | | |
|---|
| 228 | 229 | | J. The system is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the system pursuant to this section. If one or more payments are made by the system to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. |
|---|
| 229 | 230 | | |
|---|
| 230 | 231 | | K. The system may adopt policies and procedures that govern the implementation of this section. END_STATUTE |
|---|
| 231 | 232 | | |
|---|
| 232 | 233 | | Sec. 4. Section 38-910, Arizona Revised Statutes, is amended to read: |
|---|
| 233 | 234 | | |
|---|
| 234 | 235 | | START_STATUTE38-910. Domestic relations orders; procedures; payments |
|---|
| 235 | 236 | | |
|---|
| 236 | 237 | | A. Notwithstanding any other law, in a judicial proceeding for annulment, dissolution of marriage or legal separation that provides for the distribution of community property, or in any judicial proceeding to amend or enforce such a property distribution, a court in this state may issue a domestic relations order that provides that all or any part of a participant's benefit or refund in the plan that would otherwise be payable to that participant shall instead be paid by the plan to an alternate payee. The value of a participant's benefit shall be the value on the earliest date of service of the petition for annulment, dissolution of marriage or legal separation. |
|---|
| 237 | 238 | | |
|---|
| 238 | 239 | | B. A domestic relations order is not effective against the plan unless the domestic relations order is approved by the plan and qualifies as a plan approved domestic relations order. To qualify as a plan approved domestic relations order, a domestic relations order shall comply with any policies or procedures adopted pursuant to subsection K of this section and shall also meet all of the following requirements: |
|---|
| 239 | 240 | | |
|---|
| 240 | 241 | | 1. The domestic relations order shall state the name and the last known mailing address of the participant and the name and last known mailing address of the alternate payee that is covered by the domestic relations order. |
|---|
| 241 | 242 | | |
|---|
| 242 | 243 | | 2. The domestic relations order shall clearly state the amount or percentage of the participant's benefits that is payable by the plan to the alternate payee or the precise manner in which the amount or percentage is to be determined. |
|---|
| 243 | 244 | | |
|---|
| 244 | 245 | | 3. The domestic relations order shall state the number of payments or periods to which the domestic relations order applies, if applicable. |
|---|
| 245 | 246 | | |
|---|
| 246 | 247 | | 4. The domestic relations order shall state that the domestic relations order applies to the plan. |
|---|
| 247 | 248 | | |
|---|
| 248 | 249 | | 5. The domestic relations order shall not require the plan to provide any type or form of benefit or any option not otherwise provided by this article. |
|---|
| 249 | 250 | | |
|---|
| 250 | 251 | | 6. The domestic relations order shall not require the plan to provide increased benefits determined on the basis of actuarial value. |
|---|
| 251 | 252 | | |
|---|
| 252 | 253 | | 7. The domestic relations order shall not require the payment of benefits to an alternate payee if the benefits are required to be paid to another alternate payee under a separate plan approved domestic relations order. |
|---|
| 253 | 254 | | |
|---|
| 254 | 255 | | 8. The domestic relations order shall have been issued by a court of competent jurisdiction of a state, territory or possession of the United States. |
|---|
| 255 | 256 | | |
|---|
| 256 | 257 | | C. On receipt by the plan of a certified copy of a domestic relations order and a written request for a determination that the domestic relations order is a plan approved domestic relations order, the plan shall promptly issue a written notice of receipt stating that the domestic relations order and request were received to the participant and alternate payee at the addresses on file, if any. |
|---|
| 257 | 258 | | |
|---|
| 258 | 259 | | D. The plan has a determination period to issue a written determination indicating whether a domestic relations order qualifies as a plan approved domestic relations order. If the participant is receiving benefits during the determination period, and if the plan can determine the amount of the benefits that currently would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds and shall pay the remaining portion of the benefits to the participant. If the plan determines the domestic relations order is a plan approved domestic relations order, the plan shall pay the participant and alternate payee pursuant to the plan approved domestic relations order in the month following the month in which the determination was issued, or in the month following the month in which a benefit is payable under the plan approved domestic relations order, whichever is later. If the plan determines the domestic relations order fails to qualify as a plan approved domestic relations order, the plan shall specify in its determination how the domestic relations order is deficient and how it may be amended to qualify as a plan approved domestic relations order. If the participant is currently receiving benefits, and if the plan can determine the amount of segregated funds that would be payable to the alternate payee if the domestic relations order were a plan approved domestic relations order, the plan shall hold the segregated funds during the cure period to allow the parties to submit a certified copy of an amended domestic relations order and a written request for a determination that the amended domestic relations order is a plan approved domestic relations order. During the cure period, the plan shall pay the participant's portion to the participant. At the end of the cure period, if the issue of whether an amended domestic relations order qualifies as a plan approved domestic relations order remains undetermined or if an amended domestic relations order is determined not to be a plan approved domestic relations order, the plan shall pay the segregated funds and the participant's portion to the participant. The participant shall hold the segregated funds in trust for the alternate payee as provided in subsection J of this section. If an amended domestic relations order that is submitted after the expiration of the cure period is determined to be a plan approved domestic relations order, the plan shall make payments to an alternate payee under the plan approved domestic relations order only prospectively. A determination by the plan that a domestic relations order is not a plan approved domestic relations order does not prohibit a participant or alternate payee from submitting an amended domestic relations order to the plan. |
|---|
| 259 | 260 | | |
|---|
| 260 | 261 | | E. Each participant and alternate payee is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any participant or alternate payee. The plan has no duty to provide a notice of receipt or determination or pay benefits by means other than mailing the notice or payments to the participant or alternate payee at the last known address that is on file with the plan. If the address of an alternate payee is unknown to the plan, but benefits are payable to the alternate payee pursuant to a plan approved domestic relations order, the plan shall either: |
|---|
| 261 | 262 | | |
|---|
| 262 | 263 | | 1. Hold the alternate payee's portion until such a time as the alternate payee provides the plan with a current address. Once the plan is notified of the alternate payee's current address, the plan shall prospectively pay the alternate payee's portion to the alternate payee. |
|---|
| 263 | 264 | | |
|---|
| 264 | 265 | | 2. Pay the alternate payee's portion to the participant, who shall hold the alternate payee's portion in trust as provided in subsection J of this section, until such a time as the alternate payee is located. At that time, the participant shall pay the alternate payee's portion directly to the alternate payee. |
|---|
| 265 | 266 | | |
|---|
| 266 | 267 | | F. If the address of a participant is unknown to the plan, but benefits are payable to the participant pursuant to a plan approved domestic relations order, the plan shall hold the participant's portion until the participant provides the plan with a current address. |
|---|
| 267 | 268 | | |
|---|
| 268 | 269 | | G. If the alternate payee identified in a plan approved domestic relations order predeceases the participant and the plan approved domestic relations order does not otherwise provide for the disposition of the alternate payee's interest, the plan shall pay the alternate payee's portion to the personal representative of the deceased alternate payee pursuant to this subsection. The personal representative is responsible for maintaining a current mailing address on file with the plan. The plan has no duty to attempt to locate any personal representative. The plan is not responsible for making benefit payments to a personal representative until the personal representative has both: |
|---|
| 269 | 270 | | |
|---|
| 270 | 271 | | 1. Persuaded the plan that the personal representative is authorized to receive payments designated for the deceased alternate payee. |
|---|
| 271 | 272 | | |
|---|
| 272 | 273 | | 2. Provided the plan with an address to which the payments should be sent. |
|---|
| 273 | 274 | | |
|---|
| 274 | 275 | | H. If, within thirty days after the date the plan verifies an alternate payee's death, a personal representative does not make demand on the plan for the alternate payee's portion, the plan shall either: |
|---|
| 275 | 276 | | |
|---|
| 276 | 277 | | 1. Hold the alternate payee's portion until the time a personal representative makes a proper demand for payment of the alternate payee's portion. |
|---|
| 277 | 278 | | |
|---|
| 278 | 279 | | 2. Remit the alternate payee's portion to the participant, who shall hold the amounts in trust for the estate of the alternate payee until the personal representative is identified. At that time, the participant shall pay the alternate payee's portion paid by the plan to the participant to the personal representative. |
|---|
| 279 | 280 | | |
|---|
| 280 | 281 | | Thereafter, the plan shall prospectively pay the alternate payee's portion to the personal representative. |
|---|
| 281 | 282 | | |
|---|
| 282 | 283 | | I. Amounts held or paid pursuant to this section shall not accrue interest unless otherwise prescribed by this article. |
|---|
| 283 | 284 | | |
|---|
| 284 | 285 | | J. The plan is not liable to the participant, the alternate payee, any personal representative of the estate of an alternate payee or any other person for any amount paid, withheld or disbursed by the plan pursuant to this section. If one or more payments are made by the plan to a person not otherwise entitled to receive the payments, the recipient of the payment is designated a constructive trustee for the payment received and, together with the marital community, if any, is the sole party against whom an action may be brought to recover the payment. |
|---|
| 285 | 286 | | |
|---|
| 286 | 287 | | K. The plan may adopt policies and procedures that govern the implementation of this section. END_STATUTE |
|---|