Sec. 22.01.03.03. Eligible Domestic Relations Orders

A. Domestic relations orders shall be submitted to the Agency and shall be directed to the attention of Eligible Domestic Relations Orders.

B. A domestic relations order shall constitute an eligible domestic relations order only if it satisfies all of the following requirements:

(1) Contains the:

(a) Name of the State system or State systems to which the order applies;

(b) Name and last known mailing address of the participant;

(c) Name and last known mailing address of the alternate payee; and

(d) Date of the parties' marriage, and the date of the parties' divorce;

(2) Creates or recognizes the right of the alternate payee to receive all or a portion of the participant's plan benefit if, when, and as paid by the Board of Trustees;

(3) Constitutes a method of division of a participant's plan benefit which conforms to the provisions of State Personnel and Pensions Article, Division II, Annotated Code of Maryland, including State Personnel and Pensions Article, Title 21, Subtitle 4, Annotated Code of Maryland;

(4) Does not require the payment of any type or form of benefit, or any option, not otherwise provided by State Personnel and Pensions Article, Division II, Annotated Code of Maryland;

(5) Does not affect the rights of a different alternate payee who was named by the participant in an eligible domestic relations order on file at the Agency;

(6) Provides for payment of an amount that does not exceed the participant's plan benefit;

(7) Directs the Board of Trustees to pay all or a portion of the participant's plan benefit to the alternate payee directly at a time and in a form that is available to the participant;

(8) Describes each type of plan benefit set forth in Regulation .02B(10) that is assigned to the alternate payee, using terms that are sufficient to precisely identify each type of plan benefit;

(9) Provides for payment of the alternate payee's share of the plan benefit in one of the following ways:

(a) A fixed dollar amount;

(b) A fixed percentage of the participant's plan benefit; or

(c) A fixed formula that satisfies the criteria specified in Regulation .07 of this chapter;

(10) If the alternate payee has been assigned a portion of an allowance and will receive payment of:

(a) A fixed dollar amount, states that the alternate payee shall receive a pro rata share of any cost-of-living adjustments payable after the date of administration of the order by the Agency; or

(b) A fixed percentage or fixed formula, states the alternate payee shall receive a pro rata share of all cost-of-living adjustments;

(11) Subject to §D of this regulation, if a participant is eligible to elect an optional form of allowance that provides a postretirement survivor benefit:

(a) States whether the participant is permitted or required to elect the basic allowance or an optional form of allowance;

(b) If the participant is permitted or required to elect an optional form of allowance, states whether the participant is required to select a specific optional form of allowance under State Personnel and Pensions Article, §21-403, Annotated Code of Maryland;

(c) States whether the participant is required to designate the alternate payee as the beneficiary of a postretirement survivor benefit; and

(d) If the participant is permitted to designate a beneficiary other than the alternate payee, states whether and what share, if any, of the beneficiary's postretirement survivor benefit is payable to the alternate payee;

(12) Is titled "Eligible Domestic Relations Order";

(13) Does not reference Qualified Domestic Relations Orders or the Employee Retirement Income Security Act of 1974;

(14) States that it is the obligation of the alternate payee to promptly:

(a) Provide the Agency a certified or true-test copy of the domestic relations order and any modifications or amendments to the order;

(b) Provide the following information to the Agency in writing contemporaneously with the submission of a domestic relations order:

(i) The Social Security numbers and dates of birth of the participant and alternate payee; and

(ii) The current address and current telephone number of the alternate payee;

(c) Submit documentation to verify the alternate payee’s date of birth;

(d) When an alternate payee becomes eligible to receive a monthly allowance, submit the required forms to commence receipt of the allowance by electronic fund transfer;

(e) Notify the Agency in writing of:

(i) The death of the participant; or

(ii) Any change of the alternate payee’s name, address, or telephone number; and

(f) Comply with all reasonable requests from the Agency for information and documentation necessary for administering the domestic relations order;

(15) States that it is the obligation of the participant to promptly:

(a) Submit any applications or forms required by the Agency to effectuate any provision of the domestic relations order;

(b) Notify the Agency in writing of:

(i) The death of the alternate payee; or

(ii) Any change of the participant’s name, address, or telephone number; and

(c) Comply with all reasonable requests from the Agency for information and documentation necessary for administering the domestic relations order;

(16) States that if the participant fails to act as required by the domestic relations order, or takes any action in contravention of the domestic relations order, the participant, and not the Agency, shall bear the sole and exclusive liability for the action;

(17) States that the Agency is not liable to make further payments to the alternate payee if the participant transfers to another retirement or pension system that is not administered by the Agency;

(18) States that:

(a) All payments to the alternate payee shall be includable in the taxable income of and taxable to the alternate payee in accordance with the applicable provisions of the Internal Revenue Code, Treasury regulations, and other guidance; and

(b) After-tax contributions shall be allocated to the parties in the same proportion as the total amount of the alternate payee’s share bears to the participant’s total plan benefit; and

(19) Is:

(a) Signed and dated by a judge of a court of competent jurisdiction;

(b) A certified or true-test copy by the clerk of the court; and

(c) In the case of an out-of-State domestic relations order, filed in a Circuit Court in the State in accordance with the Uniform Enforcement of Foreign Judgments Act, Courts and Judicial Proceedings Article, Title 11, Subtitle 8, Annotated Code of Maryland.

C. The Social Security numbers and dates of birth of the participant and alternate payee shall be provided to the Agency in written correspondence accompanying a domestic relations order.

D. If the participant is required to designate the alternate payee as the beneficiary of a postretirement survivor benefit that provides for payments for life, an eligible domestic relations order may not permit the designation of more than one individual as the beneficiary.

E. If the Agency determines that the domestic relations order satisfies the requirements set forth in §§B through D of this regulation, the domestic relations order shall be administered as an eligible domestic relations order in accordance with Regulation .04 of this chapter.

F. If the Agency determines that the domestic relations order or written correspondence accompanying the domestic relations order does not satisfy the requirements set forth in §B, C, or D of this regulation, the domestic relations order shall be rejected according to the procedure in Regulation .05 of this chapter.