Nebraska Administrative Code › Topic - PUBLIC EMPLOYEES RETIREMENT SYSTEMS › Title 303 - PUBLIC EMPLOYEES RETIREMENT BOARD › Chapter 21 - QUALIFIED DOMESTIC RELATIONS ORDERS › Section 303-21-003 - Distribution Procedures

Current through June 17, 2024
003.01 If an order is determined to be a
				qualified domestic relations order, NPERS shall allocate and distribute
				retirement benefits to the member and the alternate payee according to the
				terms of the order. Payment of the benefit to the alternate payee shall
				commence either on the member's retirement date or on the first day of the
				month immediately following the month in which the alternate payee notifies
				NPERS of the election to begin payment, but not before the member's earliest
				retirement date.
003.02 If the
				order pertains to a defined contribution plan, NPERS shall segregate the
				alternate payee's interest in the member's benefit in a separate account
				pending distribution. Unless the domestic relations order provides otherwise,
				the amounts allocated to the alternate payee shall be deducted from each of the
				member's employer and employee accounts in the same percentage as the total
				percentage awarded to the alternate payee under the order. The alternate payee
				shall have the right to allocate the amounts in such account to the various
				investment options available to members of the plan and shall be subject to the
				same restrictions upon transfers between investment options as may be
				applicable to other members of the plan.
003.03 If the order pertains to a defined
				benefit plan, NPERS shall indicate in the member's account file the existence
				of the qualified domestic relations order. Upon the triggering of a
				distribution under the plan to the alternate payee or the member, NPERS shall
				compute the alternate payee's interest in the member's accrued benefit under
				the order and shall reduce the member's benefit accordingly.
003.04 If the order does not specify the form
				of benefit to be taken by the alternate payee, the alternate payee may select
				any form of benefit available to the member except a joint and survivor annuity
				covering the alternate payee and the alternate payee's subsequent
				spouse
003.05 If the alternate
				payee dies prior to receiving any payment of his or her interest in the
				member's benefit under a qualified domestic relations order, such interest
				reverts to the member. If the alternate payee dies after commencement of
				payments of his or her interest, then the alternate payee's beneficiary is
				entitled to the balance of the alternate payee's interest under the payment
				option provided by the order or selected by the alternate payee, except a joint
				and survivor annuity option with the alternate payee and the alternate payee's
				subsequent spouse. For purposes of this section, payment of the alternate
				payee's interest in the member's benefit shall be deemed to have commenced on
				the earlier of the member's retirement date or on the first day of the month
				immediately following the month in which the alternate payee notifies NPERS of
				the election to begin payment, but not before the member's earliest retirement
				date.