- (1) TRS will make available to the public model forms approved for use as a Family Law Order (FLO).
- (2) A FLO may not provide for payments to an alternate payee prior to the date on which the member first becomes eligible for payment from TRS.
- (3) If benefits are payable pursuant to a FLO that meets the requirements of a domestic relations order as defined in IRC section 414(p), the applicable provisions of IRC section 414(p) will be followed by TRS in giving effect to the FLO.
(4) Two basic types of payment distributions are allowed to alternate payees: "fixed amount" and "actuarially equivalent amount."
- (a) A fixed amount distribution may be expressed as a percentage of the benefit otherwise payable by the retirement system or as a specific dollar amount may not exceed the amount of the periodic or lump-sum benefit payable by the retirement system at any time. A fixed amount distribution expressed as a percentage of the benefit will include a share of any guaranteed annual benefit adjustment applied to the benefit. The duration of the fixed amount distribution may be for a specific period of time; for the life of the member; or for as long as a benefit is payable on the member’s account. In all cases, a fixed amount distribution will terminate, at the latest, when a benefit is no longer payable to the member or to a joint annuitant or beneficiary of the member, even if the dollar amount specified in the FLO has not been paid in full or payments have not been made for the period of time specified in the FLO.
- (b) An actuarially equivalent amount distribution must be expressed as a percentage of the benefit otherwise payable to the member, and is actuarially adjusted to be paid for the life of the alternate payee. An actuarially equivalent amount FLO may be entered only on the account of an active or inactive member.
Authorizing statute(s): 19-20-201, MCA
Implementing statute(s): 19-20-106, 19-20-305, MCA
History: NEW, 1993 MAR p. 2404, Eff. 10/15/93; AMD, 2007 MAR p. 2120, Eff. 12/21/07; AMD, 2008 MAR p. 2619, Eff. 12/25/08; AMD, 2025 MAR, Notice No. 2025-107, Eff. 10/25/25.