Illinois Administrative Code
Title 80 - PUBLIC OFFICIALS AND EMPLOYEES
Part 1600 - UNIVERSITIES RETIREMENT
Subpart F - QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDERS
Section 1600.630 - Effect of a Valid QILDRO
Universal Citation: 80 IL Admin Code ยง 1600.630
Current through Register Vol. 48, No. 38, September 20, 2024
a) Timing of Effect. In no event shall a QILDRO apply to any benefit paid by SURS before or within 30 days after the order is received. [40 ILCS 5/15-119(c)(3)] SURS shall not delay the payment of any benefit to a member due to the receipt of a QILDRO. In addition to the foregoing, the following shall apply:
1) Retirement Benefits. A provision under a
QILDRO dividing a retirement benefit under Section 1-119(n)III of the Pension
Code shall take effect as ordered under either Section 1-119(n)III(B) or (C) of
the Pension Code.
2) Member's
Refunds and Death Benefits. A provision under a QILDRO dividing a member's
refund or death benefit shall take effect when the member's refund is paid or
as soon as administratively possible after the member's death.
3) Self-Managed Plan Accounts. A QILDRO
pertaining to a member of the Self-Managed Plan having an account balance shall
only divide the vested account balance between the member and the alternate
payee as of a certain date (or the closest valuation date if the plan provider
cannot provide a valuation on the date specified). The division shall be made
in relation to a dollar amount, a percentage of the gross balance, or a
percentage of a balance derived from the marital period. The System shall
process the division as soon as administratively possible after receipt of the
QILDRO or, if required, the QILDRO Calculation Court Order. If the QILDRO
divides the member's account balance in accordance with this subsection (a)(3),
the System shall ignore purported divisions of other benefit types.
b) Timing of Payments. Benefits subject to a QILDRO shall be paid in the following manner:
1) Dollar Divisions. If a retirement benefit,
member's refund or death benefit is divided by a dollar amount, then the
payments shall be made when the QILDRO takes effect under subsection
(a).
2) Percentage Divisions. If a
retirement benefit, member's refund or death benefit is divided as a percentage
of the gross benefit or as a percentage of the marital portion of the benefit,
payment shall be made as soon as administratively possible upon the receipt of
a valid QILDRO Calculation Court Order.
A)
Withholding of Anticipated Payments. If the member participates in the
Traditional or Portable Benefit Packages prior to the receipt of a QILDRO
Calculation Court Order, SURS shall withhold an amount from a member's
retirement benefit for which a QILDRO is effective under subsection (a). The
member and any other alternate payees shall be paid the remaining portion of
the benefit in their order of priority.
i) If
the division is by a percentage of the gross benefit, then the amount withheld
shall be calculated by applying the applicable percentage to the
benefit.
ii) If the division is by
a percentage of the marital period, then the amount withheld shall be
calculated by applying the applicable percentage and by assuming that all
service, contributions, interest or earnings attributable to periods between
the marriage date and the date of dissolution are attributed to the marital
period. Any academic year containing a portion of the marital period shall, in
its entirety, be considered part of the marital period for this
purpose.
iii) If SURS cannot
reasonably determine from the QILDRO alone the amount to be withheld, neither
the member nor the alternate payee shall be paid until the QILDRO is modified
to allow for a reasonable determination of the anticipated payment or until a
QILDRO Calculation Court Order is received.
iv) If SURS discovers that it has
over-withheld due to the receipt of a QILDRO Calculation Court Order, the
excess shall be distributed to the member and any other alternate payees in
their order of priority. SURS shall not pay any interest to the member or any
other alternate payees for any amounts over-withheld.
v) If SURS discovers that it has
under-withheld due to the receipt of a QILDRO Calculation Court Order, SURS
shall make a deduction from the remaining portion of the next monthly
retirement benefit payable and pay the deducted amounts to the alternate payee
as soon as administratively possible. The deduction rate shall be no more than
50% of the remaining monthly retirement benefit payment net of tax or insurance
withholdings. The deduction shall recur for each monthly retirement benefit
payment thereafter until the alternate payee is paid the under-withheld amount
in full. SURS shall not pay any interest to the alternate payee for any amounts
under-withheld.
vi) In the event
that a QILDRO terminates upon the death of the alternate payee before a valid
QILDRO Calculation Order is received, all withholdings shall revert to the
member and to other alternate payees in their order of priority. SURS shall not
pay any interest to the member or any other alternate payees for any amounts so
withheld.
B) Preliminary
Estimated Payments. If a member is receiving preliminary estimated payments
under Section
1600.420
and a QILDRO Calculation Court Order is required for payment under this
subsection (b)(2), the retirement benefit shall not be finalized until a QILDRO
Calculation Court Order is received by the System.
3) Self-Managed Plan Accounts. If the
division is a percentage of the gross account balance or of the balance derived
from the marital period, a QILDRO Calculation Order must be received before the
account is divided. Upon a division of the account, the alternate payee shall
have the option of receiving his or her portion of the account balance in the
form of a lump-sum payment or maintaining a separate account with the service
provider. The maintenance of an account balance shall not create rights under
the Self-Managed Plan for the alternate payee other than the investment and
distribution of his or her account.
c) Priority of Payments
1) Recouping Overpayments. If a member,
survivor or other beneficiary was overpaid benefits, any benefits payable shall
be applied to the overpayment before any QILDRO is applied.
2) If a benefit is subject to multiple
QILDROs, each QILDRO shall be satisfied in the order in which it was received
until the benefit is exhausted.
3)
The alternate payee shall be paid a portion of the death benefit to which the
QILDRO applies before any death beneficiary or estate.
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