94- 411 C.M.R. ch. 103, § 15 - Form of Payment to Alternate Payee; Service Retirement Benefits

1. When the interest awarded to an alternate payee by a qualified domestic relations order's distributed as a portion of a service retirement benefit, the System will pay the alternate payee an amount that is the actuarial equivalent of that interest in the form of an annuity payable in equal monthly installments for the life of the alternate payee when:

A. the qualified domestic relations order arises in or because of divorce; and

B. the qualified domestic relations order divides service retirement benefits between a member and her/his former spouse; and

C. the determination that the order is a qualified domestic relations order is made prior to the member's retirement.

D. Payment under this subsection shall be determined as follows:

(1) As of the date payment to the alternate payee is scheduled to begin, the System shall determine the single life annuity value of the retirement benefit payable to the member;

(2) If the portion of the benefit awarded to the alternate payee by the order is not clearly stated as a percentage of full benefits, the System shall determine the percentage of full benefits that is the equivalent to the benefit awarded to the alternate payee;

(3) The single life annuity value determined by the System shall be multiplied by the percentage of full benefits awarded to the alternate payee. The result of this calculation shall be actuarially converted to a single life annuity payable to the alternate payee for the lifetime of the alternate payee; and

(4) The benefit payable to the member shall be reduced by an amount equivalent to the value of the benefit payable to the alternate payee. Payment by the System of the alternate payee's interest as provided by this section has no effect on the right of a member to name a beneficiary or the right of a member to choose an optional method of payment upon retirement.

(5) Payment of the alternate payee's interest under this subsection will be effective as of the same date benefit payments are effective for the member.

2. When the interest awarded to an alternate payee by a qualified domestic relations order is distributed as a portion of a service retirement benefit and the determination that the order is a qualified domestic relations order in made subsequent to the member's retirement the interest awarded the alternate payee by the qualified domestic relations order will be paid as a portion of the service retirement benefit the retiree is receiving.

A. If the alternate payee is already a named beneficiary under any option elected by the retiree at retirement, the total monthly benefit to which the retiree is entitled without regard to the qualified domestic relations order, whether payable to the retiree only or as divided between the retiree and the alternate payee beneficiary, will be apportioned between the retiree and the alternate payee according to the terms of the qualified domestic relations order. Upon the death of either the retiree or the alternate payee beneficiary, the benefit amount to be paid to the survivor will be that required under the option elected by the retiree at retirement, as though no qualified domestic relations order had existed.

B. If the alternate payee is not a named beneficiary under the option elected by the retiree at retirement, the benefit to which the retiree is entitled without regard to the qualified domestic relations order, will be apportioned between the retiree and the alternate payee according to the terms of the qualified domestic relations order. If the retiree predeceases the alternate payee, payments to the alternate payee will cease and payments to the retiree's named beneficiary or beneficiaries will be made as required under the option elected by the retiree at retirement, as though no qualified domestic relations order had existed. If the alternate payee predeceases the retiree, the benefit then being paid to the retiree will be increased by the amount of the benefit which was being paid to the alternate payee at time of death.

C. Payment according to the terms of the qualified domestic relations order under this subsection will commence as of the first day of the month following the date upon which the order is determined to be qualified, unless the parties jointly direct that payment is to commence at a later date.

Notes

94- 411 C.M.R. ch. 103, § 15