1. A. The Agency shall issue a notice of administration to each party to an eligible domestic relations order which specifies how the Agency shall administer the division of the participant's plan benefits under the order.
2. B. Subject to §C of this regulation, the Agency shall pay plan benefits to a participant and an alternate payee in accordance with the notice of administration issued under §A of this regulation.

3. C. Notice of Disagreement.

   1. (1) Within 45 days of the date that a notice of administration is sent to the parties, a party shall advise the Agency and the other party to the order, in writing, if the party disagrees with the Agency’s proposed method of distribution set forth in the notice of administration and the basis for the party’s disagreement.

   2. (2) On receipt of a notice of disagreement from a party, if the Agency determines that a genuine dispute exists regarding the proper interpretation of the order, the Agency shall:

      1. (a) Refrain from making payment of plan benefits to the participant and the alternate payee as soon as practical;

      2. (b) Request the parties to the order to:

         1. (i) Obtain and submit an amended order in accordance with Regulation .06 of this chapter; or
         2. (ii) Promptly file a consent agreement with the Agency; and
      3. (c) Notify the parties that payment of plan benefits shall begin not earlier than the last day of the month following the month of receipt of the amended order or consent agreement.
   3. (3) The Agency shall begin making payments of plan benefits to the participant and the alternate payee as provided in the consent agreement as soon as is practicable. Unless otherwise provided in the consent agreement, the payments shall be retroactive to the date the Agency ceased making payments to the participant and the alternate payee. Interest is not payable by the Agency with respect to any plan benefits that were not paid when due.
   4. (4) If the Agency does not receive a consent agreement or an amended eligible domestic relations order within 3 months following receipt of a notice of disagreement from a party, the Agency shall administer the domestic relations order in accordance with the notice of administration.
4. D. The System, the Agency, and the Board of Trustees are not liable for any payment made to a party under an eligible domestic relations order in accordance with the Agency's notice of administration or the parties' consent agreement.

Authority: State Personnel and Pensions Article, §§21-110, 21-502, and 21-603, Annotated Code of Maryland

Effective date: January 1, 1996 (22:26 Md. R. 2031)

Effective January 1, 1996, all of Title 22 was repealed and completely new regulations adopted. Codification and organization of the title were also completely changed. Consequently, the administrative histories of the revised Title 22 do not reflect regulatory activity before January 1, 1996. Refer to the old version of Title 22 or contact the Maryland State Archives for assistance.

Chapter revised effective October 11, 2004 (31:20 Md. R. 1486)

Regulation .02B amended effective August 4, 2014 (41:15 Md. R. 892); February 11, 2019 (46:3 Md. R. 108)

Regulation .03 amended effective August 4, 2014 (41:15 Md. R. 892)

Regulation .03B amended effective November 23, 2015 (42:23 Md. R. 1434); February 11, 2019 (46:3 Md. R. 108)

Regulation .03E amended effective February 11, 2019 (46:3 Md. R. 108)

Regulation .04C amended effective August 4, 2014 (41:15 Md. R. 892)

Regulation .05A amended effective February 11, 2019 (46:3 Md. R. 108)

Regulation .05C adopted effective August 4, 2014 (41:15 Md. R. 892)

Regulation .06A amended effective August 4, 2014 (41:15 Md. R. 892)

Regulation .07A amended effective February 11, 2019 (46:3 Md. R. 108)

Regulation .07D adopted effective February 11, 2019 (46:3 Md. R. 108)

Regulation .08 amended effective August 4, 2014 (41:15 Md. R. 892)

Regulation .09A amended effective August 4, 2014 (41:15 Md. R. 892)

Regulation .10 adopted effective March 23, 2009 (36:6 Md. R. 492)