|(a) If, in response to a notice sent to the parties under §109.7 of this title (relating to Conditional Approval of Order), written notice of a contest is timely received, the domestic relations liaison shall in writing notify all other parties of the receipt of that contest, and shall request the assistance of all parties in insuring that the order is in compliance, or is brought into compliance with the provisions of this chapter relating to qualified domestic relations orders. (b) For a period of 90 days following the date of mailing of the conditional approval under §109.7 of this title (relating to Conditional Approval of Order) if a notice of contest has been timely received, the system will not make any payment to the alternate payee under the contested order unless the contest is sooner withdrawn in writing by the party who gave written notice of contest. The system may (but is not required to) pay to the participant all or any
portion of any benefits to which the participant appears entitled under the order. Any benefits not paid under this subsection shall be retained by the system until they are paid under one of the subsections of this section. (c) Any party desiring to contest the order may, within that 90-day period, apply to the courts for a clarification order, and, in the event that the system receives (within such 90-day period) notice of such a motion being filed, the system will continue to withhold payment of benefits until the first to occur of: (1) the system's receipt of a certified copy of a subsequent order that the domestic relations liaison determines qualifies under this chapter; or (2) the expiration of six months from the date of mailing of the notice of conditional approval under §109.7 of this title (relating to Conditional Approval of Order) provided that for good cause shown prior to the expiration of the six-month
period, the time for withholding payment of benefits may be extended for up to two additional six-month periods. (d) If, within the six-month period (including any extensions for good cause) set forth in subsection (c)(2) of this section, the system receives a subsequent order under §109.11 of this title (relating to Procedure for Obtaining Formal Hearing), the system will pay all benefits (including any that have been withheld under this chapter) pursuant to that subsequent order, unless the domestic relations liaison notifies the parties in writing that the order does not qualify under this chapter. In making a determination hereunder, the domestic relations liaison may (but shall not be required to) rely on the determination of the court in a clarification order meeting the requirements of §109.4 of this title (relating to Requirements for Qualified Domestic Relations Orders). If the domestic relations liaison notifies the parties in writing that the
subsequent order does not qualify, action on the order thereafter will be in accordance with the provisions of §109.9 of this title (relating to Order Appearing Not To Qualify). (e) If the system does not receive (within the 90 days described in subsections (a)-(d) of this section) notice of such a motion being filed, or if the contest has been withdrawn in writing, then payment will be made under §109.8 of this title (relating to Payments Under Conditionally Approved Order) if the domestic relations liaison conditionally approved the order, or further action on the order shall be under §109.9 of this title (relating to Order Appearing Not to Qualify) if the domestic relations liaison made an initial determination that the order does not qualify under this chapter. (f) Upon the expiration of 18 months from the date the domestic relations order was received, if the issue of whether or not the order is a qualified domestic relations
order has not been resolved within that period of time, the system will pay to the participant all sums that have been withheld hereunder up to that date, and shall thereafter make payment of benefits as if no order had been received by the system. (g) In accordance with the Act, §841.009, neither the system nor any officials to the system shall be liable for making any payment under this section.