Current through Register Vol. 18, September 20, 2024
(1) Pursuant to this rule and ARM
2.43.3009,
the board will accept and apply family law orders (FLOs) in the PERS DBRP, and
the JRS, SRS, GWPORS, HPORS, MPORS, and FURS.
(2) Specific designations of a participant(s)
in a FLO may include:
(a) for all systems and
plans listed in (1), an individual "member" (active, inactive, or
retired);
(b) for the PERS DBRP, or
JRS, SRS, and GWPORS, "primary" and "contingent beneficiaries" eligible to
receive a lump sum payment and "contingent annuitants"; and
(c) for HPORS, MPORS, and FURS, "survivors"
and "designated beneficiaries" who are eligible to receive lump sum
payments.
(3) FLOs for
participants who are in more than one retirement system, choose to be in a
DROP, or are eligible for multiple monthly benefit payments from the same
retirement system must specify the benefit or benefits to which the FLO
applies. If a benefit is not included in a FLO, it is not subject to
distribution pursuant to the FLO.
(4) A FLO may specify a future effective date
provided:
(a) a FLO may not be effective any
earlier than the date the FLO is received by MPERA;
(b) if the participant is a benefit
recipient, the first monthly benefit payment that may be divided is the first
benefit payment following the month MPERA receives the FLO; and
(c) a FLO may not provide for payments to an
alternate payee prior to the date on which the participant first receives a
payment from the retirement system or plan.
(5) Unless otherwise specified in the FLO,
payments to an alternate payee will continue only while the participant is
receiving payments. The FLO may further limit payments to:
(a) the life of the participant whose payment
rights are being transferred;
(b)
a specified maximum time;
(c) the
life of the alternate payee; or (d) the life of a designated participant.
(6) The two basic types
of payments allowed to alternate payees are:
(a) A "defined sum" must designate a specific
total dollar amount to be paid to the alternate payee in the form of a fixed
dollar amount payable for a designated maximum number of months. If the fixed
monthly payment designated is more than the total monthly benefit or payment to
the participant, the lesser amount will be paid until the alternate payee
receives the specific total dollar amount. If the defined sum cannot be divided
evenly by the number of payments or monthly amount, any odd amount will be paid
in the first payment. The defined sum, the designated monthly dollar amount,
and the designated number of months will not be increased by subsequent
conditions or events. Payments will cease when the defined sum is paid or when
payments from the account end.
(b)
A FLO may order "proportionate payments" by designating either a fixed
percentage or a formula describing how to calculate the percentage. The fixed
percentage must be expressed as a specific percentage or as a fraction for
which the numerator and denominator are indicated. A formula calculating a
fixed percentage may use months, years, or dollar amounts to establish a
proportionate benefit.
AUTH:
19-2-403,
19-2-907, MCA; IMP:
19-2-907,
MCA
