§ 5066a - Alternate payee; domestic relations orders - Vermont Statutes

§ 5066a. Alternate payee; domestic relations orders

(a) As used in this section:

(1) "Alternate payee" means any individual who is recognized by a domestic relations order as having a right to receive all, or a portion of, another individual's payment rights in the system.

(2) "Domestic relations order" means a judgment, decree or order of the family court issued pursuant to chapter 10 of Title 4, concerning marital property rights that includes a transfer of all, or a portion of, a member's or beneficiary's payment rights in the system to an alternate payee. It also means a judgment, decree or order from a court of competent jurisdiction in another state, concerning marital property rights that includes a transfer of all, or a portion of, a member's or beneficiary's payment rights in the system to an alternate payee. Domestic relations orders shall conform to the requirements of this section in order to be effective. A domestic relations order does not take effect until it is served on the system by certified or registered mail, return receipt requested. In the event that there is more than one domestic relations order, the order which is most recent in time and which has been served on the system will control.

(b) A member's or beneficiary's rights in the retirement system may be modified by a domestic relations order as provided in this section.

(c) A domestic relations order shall contain all of the following elements:

(1) The identity of the member or beneficiary and the alternate payee by full name, current address and Social Security number.

(2) The amount or percentage of the member's or beneficiary's benefits to be paid by the board to the alternate payee and the date or dates upon which the calculation of payments is to be based.

(3) The number of payments or time period in which payments are required to be made under the domestic relations order.

(4) Each retirement plan to which the domestic relations order applies.

(d) A domestic relations order shall not provide:

(1) For a type or form of benefit, option or payment not available to the affected member or beneficiary.

(2) For an amount or duration of payment greater than that available to the affected member or beneficiary.

(3) That payment of a retirement allowance commence before the member departs from service and commences to receive benefits.

(4) Withdrawal of the member's contributions without the consent of the member and the alternate payee.

(5) Any requirements that are contrary to the intent of this section.

(e) A domestic relations order may provide for apportionment of post-retirement adjustments to the retirement allowance.

(f) Payments to the alternate payee under a domestic relations order shall be limited to the life of the member or beneficiary.

(g) An alternate payee's rights and interests under this section shall not survive the alternate payee's death and shall not be transferable by inheritance.

(h) An alternate payee's rights or interests acquired pursuant to this section are not subject to assignment, execution, garnishment, attachment or other process. An alternate payee's rights or interests may be modified only by a domestic relations order amending the domestic relations order that established the right or interest.

(i) The board, the system, its agents and employees shall not be liable to any person for carrying out the terms and conditions of a domestic relations order.

(j) The board may adopt rules to implement this section. (Added 1995, No. 36, § 10.)