Tex.
Gov't Code Section 804.003
Qualified Domestic Relations Orders
(a)
Sections 811.005 (Exemption from Execution), 821.005 (Exemption from Execution), 831.004 (Exemption from Execution), 836.004 (Exemption from Execution), 841.006 (Exemption from Execution), and 851.006 (Exemption from Execution) and any similar antialienation provisions contained in any other public retirement system shall apply to the creation, assignment, recognition, or enforcement of a right to any benefit payable with respect to a member or retiree of a public retirement system to which the section applies pursuant to a domestic relations order unless the order is determined to be a qualified domestic relations order.(b)
Except as provided in Subsection (d), the administrative head of a public retirement system to which this chapter applies and to which a domestic relations order is submitted or his designee has exclusive authority to determine whether a domestic relations order is a qualified domestic relations order. A determination by the administrative head or his designee under this section may be appealed only to the board of trustees of the public retirement system. An appeal to the board of trustees of a statewide retirement system is a contested case under Chapter 2001 (Administrative Procedure). However, the board of a statewide retirement system by rule may waive the requirement of an appeal to the board. On appeal of a decision made by the board of trustees or by the administrative head if there is no appeal to the board under this section, the standard of review is by substantial evidence.(c)
Except as provided in Subsection (d), a court does not have jurisdiction over a public retirement system to which this chapter applies with respect to a divorce or other domestic relations action in which an alternate payee’s right to receive all or a portion of the benefits payable to a member or retiree under the public retirement system is created or established. A party to such an action who attempts to make a public retirement system a party to the action contrary to the provision of this subsection shall be liable to the public retirement system for its costs and attorney’s fees.(d)
Under the optional retirement program, applicable carriers shall determine whether a domestic relations order is a qualified domestic relations order. If a dispute arises over the determination of whether a domestic relations order is a qualified domestic relations order which cannot be resolved by the procedure described in Subsection (g), the court which issued the order or which otherwise has jurisdiction over the matter shall resolve the dispute with respect to a divorce or other domestic relations action in which an alternate payee’s right to receive all or a portion of the benefits payable to a member or retiree under the optional retirement program is created or established.(e)
For the purposes of this section, benefits payable with respect to a member or retiree under the retirement system include the types of benefits payable by a public retirement system and a withdrawal of contributions from a public retirement system.(f)
A domestic relations order is a qualified domestic relations order only if such order:(1)
clearly specifies the:(A)
name and last known mailing address of:(i)
the member or retiree; and(ii)
each alternate payee covered by the order; and(B)
social security number, or an express authorization for the parties to use an alternate method acceptable to the public retirement system to verify the social security number, of the member or retiree and each alternate payee covered by the order;(2)
clearly specifies the amount or percentage of the member’s or retiree’s benefits to be paid by a public retirement system to each such alternate payee or the manner in which such amount or percentage is to be determined;(3)
clearly specifies the number of payments or the period to which such order applies;(4)
clearly specifies that such order applies to a designated public retirement system;(5)
does not require the public retirement system to provide any type or form of benefit or any option not otherwise provided under the plan;(6)
does not require the public retirement system to provide increased benefits determined on the basis of actuarial value;(7)
does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order; and(8)
does not require the payment of benefits to an alternate payee before the retirement of a member, the distribution of a withdrawal of contributions to a member, or other distribution to a member required by law.(g)
A public retirement system may reject a domestic relations order as a qualified domestic relations order unless the order:(1)
provides for a proportional reduction of the amount awarded to an alternate payee in the event of the retirement of the member before normal retirement age;(2)
does not purport to require the designation of a particular person as the recipient of benefits in the event of a member’s or annuitant’s death;(3)
does not purport to require the selection of a particular benefit payment plan or option;(4)
provides clearly for each possible benefit distribution under plan provisions;(5)
does not require any action on the part of the retirement system contrary to its governing statutes or plan provision other than the direct payment of the benefit awarded to an alternate payee;(6)
does not make the award of an interest contingent on any condition other than those conditions resulting in the liability of a retirement system for payments under its plan provisions;(7)
does not purport to award any future benefit increases that are provided or required by the legislature;(8)
provides for a proportional reduction of the amount awarded to an alternate payee in the event that benefits available to the retiree or member are reduced by law; and(9)
if required by the retirement system, conforms to a model order adopted by the retirement system.(h)
The administrative head of a public retirement system to which this chapter applies or his designee (or applicable carrier, if under the optional retirement program), upon receipt of a certified copy of a domestic relations order, shall determine whether such order is a qualified domestic relations order and shall notify the member or retiree and each alternate payee of such determination. If the order is determined to be a qualified domestic relations order, the public retirement system (or applicable carrier, if under the optional retirement program), shall pay benefits in accordance with the order. If the order is determined not to be a qualified domestic relations order, the member or retiree or any alternate payee named in the order may appeal the administrative head’s determination in the manner specified in Subsection (b) or the optional retirement program carrier’s determination in the manner specified in Subsection (d) and may petition the court which issued the order to amend the order so that it will be qualified. The court which issued the order or which would otherwise have jurisdiction over the matter has jurisdiction to amend the order so that it will be qualified even though all other matters incident to the action or proceeding have been fully and finally adjudicated.(i)
During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined by the agency administrative head, his designee, the board of trustees, a court of competent jurisdiction, optional retirement program carrier, or otherwise, the public retirement system shall separately account for the amounts, in this section referred to as the “segregated amounts,” which would have been payable to the alternate payee during such period if the order had been determined to be a qualified domestic relations order.(j)
Except as provided by Subsection (k-1), if a domestic relations order is determined to be a qualified domestic relations order, then the public retirement system (or applicable carrier, if under the optional retirement program) shall pay the segregated amounts without interest to the person or persons entitled thereto and shall thereafter pay benefits pursuant to the order.(j)
Except as provided by Subsection (k-2), if a domestic relations order is determined to be a qualified domestic relations order, then the public retirement system (or applicable carrier, if under the optional retirement program) shall pay the segregated amounts without interest to the person or persons entitled thereto and shall thereafter pay benefits pursuant to the order.(k)
Except as provided by Subsection (k-1), if a domestic relations order is determined not to be a qualified domestic relations order or if within 18 months of the date a domestic relations order is received by the public retirement system (or applicable carrier, if under the optional retirement program) the issue as to whether such order is a qualified domestic relations order is not resolved, then the public retirement system (or applicable carrier, if under the optional retirement program) shall pay the segregated amounts without interest and shall thereafter pay benefits to the person or persons who would have been entitled to such amounts if there had been no order. This subsection shall not be construed to limit or otherwise affect any liability, responsibility, or duty of a party with respect to any other party to the action out of which the order arose.(k)
Except as provided by Subsection (k-2), if a domestic relations order is determined not to be a qualified domestic relations order or if within 18 months of the date a domestic relations order is received by the public retirement system (or applicable carrier, if under the optional retirement program) the issue as to whether such order is a qualified domestic relations order is not resolved, then the public retirement system (or applicable carrier, if under the optional retirement program) shall pay the segregated amounts without interest and shall thereafter pay benefits to the person or persons who would have been entitled to such amounts if there had been no order. This subsection shall not be construed to limit or otherwise affect any liability, responsibility, or duty of a party with respect to any other party to the action out of which the order arose.(k-1)
Payment of segregated amounts by a public retirement system, or applicable carrier if under the optional retirement program, under Subsections (j) and (k) related to a benefit payable with respect to a member or retiree subject to Chapter 820 (Cash Balance Benefit) must include annual interest provided by Section 820.102 (Annual Interest Adjustment) and gain sharing interest provided by Section 820.103 (Gain Sharing Interest Adjustment).(k-2)
Payment of segregated amounts by a public retirement system, or applicable carrier if under the optional retirement program, under Subsections (j) and (k) related to a benefit payable with respect to a member or retiree subject to Chapter 840A (Cash Balance Benefit) must include annual interest provided by Section 840A.103 (Annual Interest Adjustment) and gain sharing interest provided by Section 840A.104 (Gain Sharing Interest Adjustment).(l)
Any determination that an order is a qualified domestic relations order which is made after the close of the 18-month period shall be applied prospectively only.(m)
The public retirement system, the board of trustees, and officers and employees of the public retirement system (or applicable carrier, if under the optional retirement program) shall not be liable to any person for making payments of any benefits in accordance with a domestic relations order in a cause in which a member or a retiree was a party or for making payments in accordance with Subsection (k).(n)
The board of trustees of a public retirement system may promulgate rules it deems necessary to implement the provisions of this section.(o)
Except as specifically provided in this subtitle or by any other statute, public employment does not confer special privileges or immunities on a public employee. An ownership or beneficial interest in any retirement, pension, or other financial plan not included in the definition of “public retirement system” as set forth in Section 804.001 (Definitions) held in whole or in part by an officer or employee of the state or a political subdivision or of an agency or an instrumentality of either, whether obtained in connection with that employment or otherwise, shall be subject to the requirements of the federal laws governing qualified domestic relations orders.(p)
A public retirement system may assess administrative fees on a party who is subject to a domestic relations order for the review of the order under this subchapter and, as applicable, for the administration of payments under an order that is determined to be qualified. In addition to other methods of collecting fees that a retirement system may establish, the retirement system may deduct fees from payments made under the order.
Source:
Section 804.003 — Qualified Domestic Relations Orders, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.804.htm#804.003 (accessed Jun. 5, 2024).
