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TITLE 34PUBLIC FINANCE
PART 5TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
CHAPTER 109DOMESTIC RELATIONS ORDERS
RULE §109.12Payments to Alternate Payees

(a) In the event that an eligible participant or surviving beneficiary of an eligible participant applies for a withdrawal of the participant's accumulated contributions after the date that a domestic relations order is received by the system, the system will make a lump-sum payment to the alternate payee if the domestic relations order so provides and the order has been determined to be a qualified domestic relations order.

(b) In the event that the participant or the participant's beneficiary begins receiving an annuity after the date that a qualified domestic relations order is received by the system, and the order provides for a division of the annuity in that event, the benefit payable to the alternate payee will be an annuity payable monthly during the lifetime of the alternate payee, which annuity is the actuarial equivalent of the portion of the participant's benefit that was awarded to the alternate payee under the domestic relations order.

(c) Subsection (b) of this section will apply to all domestic relations orders approved in accordance with this chapter after January 1, 1990, and to such domestic relations orders approved prior to that date as are construed to provide for such an annuity.

(d) If a qualified domestic relations order is received by the system after the participant begins receiving a retirement annuity under which the alternate payee is not the designated beneficiary-annuitant, the benefit awarded to the alternate payee may be paid as a portion of each payment, if, as, and when a payment is made under the retirement benefit to the retiree or the retiree's beneficiary. Payments to the alternate payee cease at the earliest of:

  (1) The month in which the alternate payee dies;

  (2) The month in which the final payment under the retirement benefit is made to the retiree or the retiree's beneficiary; or

  (3) The month in which the alternate payee has cumulatively received all amounts awarded under the qualified domestic relations order.

(e) If a person's membership in the system has terminated, and under the terms of a qualified domestic relations order, an alternate payee would be entitled to receive a portion of the benefit that would be payable to the former member, or the former member's beneficiary, and if a valid application for the benefit has not been filed with the system within 60 days from the date the system mails notice of membership termination in accordance with Government Code, §845.505 so that payment can be made to the alternate payee, the director may commence payment of the benefit that would be payable to the alternate payee if the person entitled to apply for the former member's benefit had filed an application for a retirement annuity. If the person entitled to apply for the former member's benefit would be entitled to only the accumulated contributions of the former member, the alternate payee will receive the amount that would be payable to the alternate payee if the person had filed an application for withdrawal of accumulated contributions.

(f) In accordance with Government Code, §804.004, and in lieu of a life annuity described in §844.006(d) of that code or in subsection (b) or subsection (e) of this section that would otherwise be payable to an alternate payee under a qualified domestic relations order, the system is authorized, but not required, to make a single lump-sum payment to the alternate payee in an amount that is the actuarial equivalent of such life annuity if:

  (1) The actuarially equivalent amount is not more than $25,000; or;

  (2) At the time the monthly annuity payments would commence, the alternate payee has directed that payment of the monthly annuity is to be delivered outside of the United States and any possession of the United States. The determination of whether to pay an amount authorized by this subsection in lieu of the interest awarded by the qualified domestic relations order is at the sole and exclusive discretion of the system.

(g) The mortality assumption for alternate payees for determining the actuarial equivalent of a benefit payable to an alternate payee shall be the same as the mortality assumption for beneficiaries as set forth in §103.1(a) of this title (relating to Actuarial Tables) with regard to service retirements.

(h) Except as provided in subsection (e) of this section, no payment shall be made by the system to an alternate payee before the time that the participant or the participant's beneficiary files a valid application for a refund or a retirement annuity.


Source Note: The provisions of this §109.12 adopted to be effective January 1, 1990, 14 TexReg 6677; amended to be effective April 15, 1996, 21 TexReg 2669; amended to be effective July 27, 2005, 30 TexReg 4215; amended to be effective July 21, 2009, 34 TexReg 4740

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