Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 6 - TEXAS MUNICIPAL RETIREMENT SYSTEM › Chapter 129 - DOMESTIC RELATIONS ORDERS › Section 129.10 - Procedures for Determination - Contested Order

Current through Reg. 49, No. 28; July 12, 2024
(a) If, in response to a notice sent to the
				parties under §
									129.7
				of this title (relating to Conditional Approval of Order) written notice of a
				contest is timely received, the domestic relations liaison shall notify in
				writing all other parties of the receipt of that contest.
(b) For a period of 30 days following the
				date of the system's receipt of notice of a contest (unless the contest is
				sooner withdrawn in writing by the party who gave written notice of contest),
				the system may proceed in accordance with this section.
(1) BEFORE RETIREMENT. If the order relates
				to a participant who has not yet begun to receive service retirement or
				disability retirement benefit payments subject to the order when the system
				receives the notice of contest, the system may delay action on an application
				by the participant for benefits that would be subject to the order.
				Alternatively, the system may (but shall not be required to) process an
				application by and begin payments to the participant of a refund or of all or
				any portion of any benefits to which the participant appears entitled under the
				order while interpreting the division of benefits in the light most beneficial
				to the alternate payee under the qualified domestic relations order and state
				law. In determining under this paragraph whether or not to process an
				application and begin payments to a participant pending completion of the
				contest, the system may take into consideration the difficulty in dividing the
				benefits between the parties prior to receipt of, or in re-dividing the
				benefits after receipt of, a qualified domestic relations order should the
				contest to the order be successful. Any benefits not paid under this paragraph
				shall be retained by the system until they are paid under one of the remaining
				subsections of this section.
(2)
				AFTER RETIREMENT. If the order relates to a participant who is receiving
				service retirement or disability retirement benefit payments when the system
				receives the notice of contest, and the contested order awards the alternate
				payee a percentage of the then-current monthly benefit payable to participant
				(commonly referred to as a "carve-out"), the system shall pay to the
				participant all or any portion of any benefits to which the participant appears
				entitled under the order while interpreting the division of benefits in the
				light most beneficial to the alternate payee under the qualified domestic
				relations order and state law. If the order awards the alternate payee an
				interest in the participant's benefits from the system other than a carve-out,
				the system is not required to reduce the amount to be paid to the participant
				until the first to occur of the events listed in subsection (c) of this
				section.
(3) Any benefits not paid
				to the participant under this paragraph shall be retained by the system until
				they are paid under one of the remaining subsections of this section.