2 AAC 36.192 - Defined contribution plan qualified domestic relations orders (QDRO's)

(a) After a member covered under AS 14.25.310-14.25.590 is divorced or the member's marriage is dissolved, the member's former spouse has no individual rights or entitlements to benefits from the system, but may, under a qualified domestic relations order, establish a separate interest in the vested contributions attributed to the member. To be valid and enforced by the administrator, a qualified domestic relations order must conform to both the requirements of AS 14.25 and the requirements of the United States Internal Revenue Code that the system must comply with in order to maintain its federal tax-qualified status.

(b) An alternate payee

(1) may only be the former spouse of a member who has been named by an order of a court of competent jurisdiction to receive all or a portion of the member's vested contribution account;

(2) will have a separate account established wherein the vested contributions of the member plus or minus the earnings on those contributions will be deposited according to the court's directive in a qualified domestic relations order (QDRO); and

(3) may elect to receive funds from the newly established account; leave the money in the account and manage it in the same manner as active or deferred participants or elect to receive the funds under one of several disbursement options under AS 14.25.420.

(c) The administrator shall review all domestic relations orders that the administrator receives, and shall reject a domestic relations order that does not meet the requirements of AS 14.25 or this chapter. A qualified domestic relations order is effective upon acceptance by the administrator. The administrator will accept only a domestic relations order that is prospective. The administrator requires a domestic relations order to, at the minimum, contain the following:

(1) the federal regulatory reference authorizing the QDRO;

(2) the name and address of the plan being attached;

(3) the participant's name, address, social security number, and date of birth;

(4) the alternate payee's name, address, social security number, and date of birth;

(5) the date of the marriage, the date of separation if applicable, and the date of the divorce or dissolution;

(6) the amount, formula, or percentage the alternate payee is to receive;

(7) a statement to the effect the alternate payee has the independent right to name beneficiaries to the alternative payee's portion of the account;

(8) a statement acknowledging additional contributions cannot be made by the alternate payee;

(9) a provision assigning the taxability of benefits to the person receiving funds;

(10) a declaration the QDRO does not require the plan to pay benefits not authorized by statute or plan document;

(11) an assurance that both parties will keep a current address on file with the administrator;

(12) a recognition the court has the authority to amend the order at a later date.

(d) Remarriage of the alternate payee does not in any way reduce or eliminate the alternate payee's entitlement to benefits under AS 14.25 or this chapter.

(e) Unless stated otherwise in the qualified domestic relations order, the administrator will transfer to the alternate payee account the amount representing the portion of the vested contributions attributable to the alternate payee on the date of divorce or dissolution, including any change in value that may have occurred between that date and the date of fund transfer.

(f) A qualified domestic relations order affecting disability benefits under AS 14.25.485 shall be accepted by the administrator only after the member has been appointed to disability.

Notes

2 AAC 36.192

Eff. 1/13/2010, Register 193

Authority:AS 14.25.005

AS 14.25.460

AS 14.25.590(22)