When a portion of the community property interest in a member or former member’s benefits under Tier 3 has been awarded, pursuant to a valid court order in a proceeding in which the Retirement System has been joined as a party, to a former spouse, former domestic partner, legally separated spouse, or legally separated domestic partner (jointly referred to as “nonmember” herein), the following payment options are available, as applicable:
(a) Payments to Nonmember Based on Court Order (“In-Kind” Payments). The Retirement System shall pay directly to the nonmember any community property interest in benefits payable under the provisions of this article that have been awarded to the nonmember, provided that the Retirement System has been joined as a party in the proceedings and ordered to make such payment in a valid court order. To the extent that benefits are payable for the lifetime of a specific person, such as the retired member or an eligible survivor, any interest therein awarded to the nonmember will terminate when the right to benefit payments ends.
(b) Option to Elect a Life Annuity. When a court of competent jurisdiction awards a former spouse or former domestic partner a portion of the retirement benefits payable to the member/former member and to the member/former member’s surviving spouse or domestic partner (survivor), if any, the former spouse or former domestic partner, in lieu of receiving his or her portion of the benefits payable based upon the lifetime of the member/former member and/or survivor, may instead make an irrevocable election to convert his or her interest in such retirement benefits into an actuarially equivalent life annuity payable for the lifetime of the former spouse or former domestic partner. If the member/former member has not yet retired, the former spouse or former domestic partner must make this irrevocable election to receive a life annuity, in writing, prior to receiving payment of his or her community property portion of the retirement allowance. If the member/former member has already retired, the election must be made at the time the former spouse or former domestic partner requests direct payment of his or her community property portion of the retirement allowance. If this irrevocable election is not made prior to the applicable times specified herein, the former spouse or former domestic partner will be deemed to have waived the right to elect to receive a life annuity.
This option is not available in a legal separation where the parties’ relationship has not been legally terminated.
(c) Legal Separations. In the event the parties have obtained a legal separation, but remain married or remain domestic partners, the legally separated spouse or legally separated domestic partner may receive benefits payable to an eligible survivor under the provisions of this article, provided he or she satisfies the applicable eligibility requirements.
SECTION HISTORY
Added by Ord. No. 184,134, Eff. 1-22-16.