(1) A participant or alternate payee must submit a certified copy of a Domestic Relations Order (DRO) to the MPERA for board approval. The board may delegate authority for approval to the executive director.

(2) The MPERA will notify the participant and the alternate payee when it receives a certified copy of a DRO. The notice will explain the procedures for determining if the DRO is qualified.

(3) While reviewing the DRO, the board may take steps to safeguard the alternate payee's rights. The steps the board may take include, but are not limited to, the following:

(a) prevent payments from the participant's account, but allow the participant to manage the investments;

(b) segregate the amounts, and earnings thereon, that will be owed to the alternate payee if the DRO is qualified;

(c) pay the nonsegregated amounts, with any earnings thereon, to the participant if the DRO is not qualified within 18 months of the date it was received by MPERA and the participant is entitled to distribution of the account; and

(d) apply the DRO prospectively if approved more than 18 months after the date it was first received by MPERA.

(4) Any fees required by a third party administrator or record keeper for segregated accounts will be charged against the participant's account unless the qualified domestic relations order (QDRO) states the fee should be deducted from amounts paid to the alternate payee.

(5) The information and requirements identified in ARM 2.43.1811 are considered the minimum the board needs to administer a QDRO. Domestic relations orders that do not contain the minimum information or address the minimum requirements are not QDROs and will be rejected by the board as not qualified. Rejected orders will be returned to the appropriate party with information on how to have the DRO qualified.

(6) Once the DRO is qualified, the board will notify the participant and the alternate payee that the DRO is being implemented as a QDRO.

(7) The alternate payee may receive their payment only as a direct payment, a rollover, or a transfer.

(8) If the alternate payee is already a participant or is eligible to participate in the State's Deferred Compensation (457) Plan, the alternate payee's payments may be made to the alternate payee's plan account. However, if the alternate payee is not eligible to participate in the State's Deferred Compensation (457) Plan, a plan account cannot be established for the alternate payee.

(9) Upon receipt of a certified copy of a stay from the issuing court or the Montana Supreme Court, the MPERA and board will suspend further consideration or implementation of a DRO. Unless otherwise directed by court order, the MPERA will not distribute the participant's 457 account pending resolution of the stay. The MPERA will take further action only on receipt of a certified copy of an order directing such action. If the stay is lifted, the MPERA will proceed with consideration, approval and implementation procedures.

(10) A restraining order may be used to temporarily stop or prohibit payment to a participant. The order must contain the same information identifying the participant and alternate payee as required for a QDRO. If a DRO is not received before the order expires, payments will resume and any retained payments will be made to the participant.

(11) The board will not charge a fee for approving or implementing a QDRO. However, the board may charge a reasonable fee if a participant, an alternate payee or any of their attorneys make excessive demands of MPERA staff to provide assistance in drafting a DRO which can be qualified.