| (a) An alternate payee of a TRS member is eligible
to receive the benefits described by Government Code §804.005
if:
(1) the alternate payee has a qualified domestic relations
order ("QDRO") approved by TRS;
(2) the alternate payee submits a written request to
TRS to receive these benefits; and
(3) the member meets the requirements of subsection
(b) of this section.
(b) The alternate payee of a TRS member may only elect
to receive benefits under this section if the member:
(1) has not retired;
(2) has attained the greater of either the age of 62
and is eligible to retire without reduction for early age retirement,
or normal retirement age and service requirements for service retirement;
and
(3) retains credit and contributions in TRS attributable
to that service.
(c) If an alternate payee elects to receive benefits
under this section, the benefits will become payable once TRS receives
a written request for the benefits and a certified copy of the domestic
relations order determined to be a QDRO.
(d) In figuring these benefits for the alternate payee
and the adjusted standard annuity of the member's benefit as set forth
in this section, TRS shall consider the member's benefit as a normal
age standard service retirement annuity without regard to any optional
annuity chosen or beneficiary designated by the member.
(e) The beginning of monthly payments under this section
terminates any interest that the alternate payee who receives the
payment might otherwise have in benefits that accrue to the account
of the member after the date the initial payment to the alternate
payee is made.
(f) An alternate payee who elects this method of payment
has only a right to receive an annuity for life as calculated in this
section and does not have the right to pass on any portion of his/her
benefit upon his/her death. There is no reversion of the alternate
payee's benefit to the member upon the alternate payee's death, irrespective
of whether the death occurs before or after the member's benefit commencement.
(g) TRS will use Tables for Life Annuity Factors furnished
by the TRS actuary of record to calculate the actuarially equivalent
portion of the member's accrued benefit payable to an alternate payee
under this section.
Attached Graphic
(h) Except as otherwise provided by this section, TRS
shall calculate the alternate payee's actuarial equivalent benefit
in the following manner:
(1) Determine the member's accrued monthly benefit
as of the alternate payee's benefit commencement date.
(2) Determine the member's age and the alternate payee's
age as of the alternate payee's benefit commencement date.
(3) Determine the appropriate percent of the member's
accrued benefit payable to the alternate payee under the terms of
the QDRO.
(4) Multiply the member's accrued benefit times the
life annuity factor at member's age times the alternate payee's percent.
Then, divide that figure by the life annuity factor at alternate payee's
age.
(i) Except as otherwise provided by this section, TRS
shall calculate a member's adjusted standard annuity by reducing the
member's standard annuity monthly benefit at the time of retirement
by an amount equal to the percent of the member's benefit payable
to the alternate payee under the QDRO multiplied by the member's accrued
monthly benefit as of the alternate payee's benefit commencement date.
(j) If the member dies before retiring:
(1) the member's adjusted standard annuity must be
used for any benefit due after death if a standard annuity is used
to calculate that benefit;
(2) the balance of the accumulated contributions in
the member savings account payable to a beneficiary must be adjusted
to reflect the payment to the alternate payee by reducing the accumulated
contributions in the member savings account by the QDRO percentage
described in subsection (h)(3) of this section; and
(3) a benefit payable under Government Code §824.402(a)(1)
and (2) or a lump sum payment of $2,500.00 plus an applicable monthly
benefit as described in Government Code §824.404 is not reduced
by payments made to the alternate payee under this section.
(k) If the member dies after retiring:
(1) the $10,000.00 lump sum survivor benefits or the
$2,500.00 lump sum payment plus an applicable monthly benefit payable
to a beneficiary under Government Code §824.501 and §824.404,
are not reduced as a result of payments to an alternate payee under
this section; and
(2) any payments paid pursuant to Government Code §824.407
must be reduced by first reducing the account balance at the time
of retirement by the QDRO percentage described in subsection (h)(3)
of this section.
(l) If the member elects to terminate membership in
TRS before retirement, the accumulated contributions in the member
account before a refund is processed must be reduced by the QDRO percentage
described in subsection (h)(3) of this section.
(m) When new law provides for an increase in the benefit
payable to the member after the commencement of the payment of an
annuity to the member, the increase will be distributed by increasing
the member's and the alternate payee's benefit as provided by the
law for an increase to the member's benefit so long as there is no
additional actuarial cost to TRS or unless provided otherwise by the
legislature.
(n) To reinstate withdrawn service reduced under subsection
(l) of this section, a person must deposit the amount withdrawn or
refunded and the fees required by law. Benefits payable based wholly
or in part on the terminated service will be reduced as described
in this section as if the service had not been terminated.
(o) When a member who has an alternate payee receiving
benefits under this section elects a partial lump-sum option, TRS
will use the member's adjusted standard annuity in the calculation
for the member's partial lump-sum payment.
(p) If the total distribution amount awarded to the
alternate payee in a QDRO is limited to a specific dollar amount,
TRS shall calculate the alternate payee's actuarial equivalent benefit
as follows:
(1) Determine the alternate payee's age as of the alternate
payee's benefit commencement date.
(2) Calculate the alternate payee's actuarial equivalent
monthly benefit by multiplying the member's accrued benefit times
the life annuity factor at member's age times the alternate payee's
percent. Compare the product to the specific dollar limit amount.
If the specific dollar limit amount is the smaller amount, divide
the specific dollar limit amount awarded to the alternate payee by
the life annuity factor at alternate payee's age to determine the
alternate payee's monthly benefit. If the specific dollar limit amount
is larger than the product of the member's accrued benefit times the
life annuity factor at member's age times the alternate payee's percent,
divide the product by life annuity factor at alternate payee's age
to determine the alternate payee's monthly benefit.
(q) When a member who is participating in the deferred
retirement option plan ("DROP") has an alternate payee begin a distribution
under this section, TRS will calculate the alternate payee's actuarial
equivalent benefit by multiplying the member's accrued benefit times
the life annuity factor at member's age plus the balance of the DROP
times the alternate payee's percent. That figure shall then be divided
by the life annuity factor at alternate payee's age.
(r) When a member who is participating in DROP has
an alternate payee begin a distribution under this section, TRS will
reduce the DROP account by applying the percentage of the member's
accrued benefit payable to the alternate payee under the terms of
the qualified domestic relations order beginning with the initial
month that a distribution is payable to the alternate payee.
(s) If the amount of monthly retirement benefit awarded
to the alternate payee in the QDRO is a stated monthly amount rather
than a percentage, TRS shall determine the alternate payee's actuarial
equivalent benefit by multiplying the stated monthly amount times
the life annuity factor at the member's age and then dividing the
product by the life annuity factor at the alternate payee's age.
(t) If the amount of monthly retirement benefit awarded
to the alternate payee in the QDRO is a percentage of the benefit
but limited to no more than a stated monthly amount, TRS shall determine
the alternate payee's actuarial equivalent benefit by multiplying
the member's accrued benefit times the life annuity factor at member's
age times the alternate payee's percent, then dividing that product
by the life annuity factor at alternate payee's age. If the amount
derived from this calculation is smaller than the stated monthly amount,
the amount calculated is the alternate payee's actuarial equivalent
benefit. If the amount derived from this calculation is larger than
the stated monthly amount, the alternate payee's actuarial equivalent
benefit is calculated by dividing the stated monthly amount by the
life annuity factor at the alternate payee's age.
(u) If the amount of the monthly retirement benefit
awarded to the alternate payee in the QDRO is a percentage of the
benefit but limited to no more than a stated monthly amount, TRS shall
determine the member's adjusted standard annuity by reducing the member's
standard annuity monthly benefit at the time of retirement by the
lesser of the stated monthly amount and the amount of the reduction
calculated under subsection (i) of this section.
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| Source Note: The provisions of this §47.17 adopted to be effective April 21, 1999, 24 TexReg 3094; amended to be effective October 28, 1999, 24 TexReg 9300; amended to be effective March 12, 2003, 28 TexReg 2118; amended to be effective March 8, 2007, 32 TexReg 1097; amended to be effective April 1, 2011, 36 TexReg 2004; amended to be effective October 10, 2013, 38 TexReg 6922; amended to be effective September 1, 2019, 44 TexReg 4191; amended to be effective January 18, 2021, 46 TexReg 472; amended to be effective September 1, 2023, 48 TexReg 4521 |
