CITY OF LOS ANGELES CALIFORNIA

Transcription

1 BOARD OF DEFERRED COMPENSATION ADMINISTRATION EUGENE K. CANZANO CHAIRPERSON RICHARD KRAUS VICE-CHAIRPERSON -- SANGEETA BHATIA CLIFF CANNON TOM MOUTES JOHN R. MUMMA MICHAEL A. PEREZ ROBERT SCHOONOVER MARGARET WHELAN CITY OF LOS ANGELES CALIFORNIA ANTONIO R. VILLARAIGOSA MAYOR PERSONNEL DEPARTMENT EMPLOYEE BENEFITS DIVISION 200 NORTH SPRING STREET, ROOM 867 LOS ANGELES, CA ( Account Separations Due to Divorce City of Los Angeles Deferred Compensation Plan To Whom It May Concern: Enclosed for your reference is a Model Qualified Domestic Relations Order (Model QDRO for the City of Los Angeles Deferred Compensation Plan. This form is for use in division of Plan participant community property assets due to divorce. The language in this Model QDRO has been approved by the Office of the City Attorney as to form. It is recommended that you use the language in the Model QDRO insofar as the Model QDRO is consistent with the intent of both parties (the participant and ex-spouse with respect to the division of the participant s Deferred Compensation Plan account. If the Model QDRO is inconsistent with the intent of the parties, and/or the QDRO you submit to the Plan otherwise deviates in any way from the Model, you are advised to contact the Office of the City Attorney at ( so that you can obtain advance approval of your proposed modified language. Please be advised that deviations from the model language will delay processing of the account separation. When you submit your proposed QDRO, you must include all of the following documents to ensure timely processing: Joinder for the City of Los Angeles Deferred Compensation Plan The Judgment of Dissolution of Divorce A copy of the QDRO to include the signatures of both parties Cover letter with a statement indicating (if true that the language in the proposed QDRO does not deviate in any way from the Model QDRO language provided by the City or, if the language does differ, a specific summary of those differences/deviations and confirmation that those changes have previously been approved by the City.

2 All of these documents and any related correspondence regarding this matter must be submitted to the following address: City of Los Angeles Deferred Compensation Plan Attn: Vicky Williams 200 North Main Street, Room 920 Los Angeles, CA For the service of subpoenas, please use the following address: City of Los Angeles Deferred Compensation Plan Attn: Natasha Gameroz 200 North Spring Street, Room 867 Los Angeles, CA Once the QDRO has been approved by the Office of the City Attorney and we have received a certified copy from the Court, the Plan can proceed with the account division in concert with the Plan record keeper. Notification will be provided to the Alternate Payee confirming the account division once the division has taken place. If you have any questions, please contact Ms. Williams at ( or by at vicky.williams@lacity.org.

3 This is merely a SAMPLE Qualified Domestic Relations Order that may be appropriate for use with respect to a defined contribution or deferred compensation plan. This SAMPLE document may or may not contain provisions that are applicable to your particular plan or your needs or situation. This sample is only for use with your attorney s advice and assistance. Your attorney will suggest the wording that is appropriate for your own Qualified Domestic Relations Order. The format of the Qualified Domestic Relations Order will vary depending upon the rules of the court in your jurisdiction. Nothing contained in this Sample shall be construed as tax or legal advice. See your attorney. Please note that FC 2060(b states, An order or judgment in the proceeding is not enforceable against an employee benefit plan unless the plan has been joined and a party to the proceeding. (See for the following forms: Summons (Joinder, Request for Joinder of Employee Benefit Plan and Order, and Pleading on Joinder Employee Benefit Plan. SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF IN RE THE MARRIAGE OF: CASE NO.: Petitioner, QUALIFIED DOMESTIC and RELATIONS ORDER Respondent AND NOW, this day of, 20, based on the findings set forth in items one through seven: IT IS HEREBY ORDERED, ADJUDGED AND DECREED in items eight through nineteen: 1. Parties: The parties hereto were husband and wife, and a dissolution action is pending before the Court, under case number. This Court has personal jurisdiction over the parties. The parties were married on and separated on. 2. Participant Information: The name, last known address, and date of birth of the plan Participant are: (Social Security number must be provided under separate cover

4 3. Alternate Payee Information: The name, last known address, and date of birth of the Alternate Payee are: (Social Security number must be provided under separate cover The Alternate Payee shall have the duty to notify the Plan Administrator in writing of any changes in mailing address subsequent to the entry of this Order. 4. Plan Name: The name of the Plan to which this Order applies is the City of Los Angeles Deferred Compensation Plan (hereinafter referred to as Plan. Any changes in Plan Administrator, Plan Sponsor, or name of the Plan shall not affect Alternate Payee s rights as stipulated under this Order. Any communication to the Plan with regard to this order shall be addressed as follows: City of Los Angeles Deferred Compensation Plan Attn: Plan Manager 200 N. Spring Street, Room 867 Los Angeles, CA Effect of this Order as a Qualified Domestic Relations Order: This Order creates and recognizes the existence of an Alternate Payee s right to receive a portion of the Participant s benefits payable under an employer-sponsored defined contribution eligible deferred compensation plan that is qualified under Section 457 of the Internal Revenue Code (the Code. It is intended to constitute a Qualified Domestic Relations Order ( QDRO under Section 414(p of the Code. 6. Pursuant to State Domestic Relations Law: This Order is entered pursuant to the authority granted in the applicable domestic relations laws of the State of California. 7. Provisions of Marital Property Rights: This Order relates to the provision of marital property rights, child support or alimony payments to the Alternate Payee as a result of the Judgment of Dissolution between the Participant and the Alternate Payee. 8. Amount of Alternate Payee s Benefit: (Choose one of the following options: Option 1. This Order assigns to the Alternate Payee an amount equal to fifty percent (50% of the Participant s account balance under the Plan attributable to the period between [date of marriage] (or the closest valuation date thereto and [date of separation] (or the closest valuation date thereto. The account balance attributable to the period set forth in the previous sentence shall include all amounts maintained under all of the various accounts and/or sub-accounts established on behalf of the Participant, including any amounts transferred or rolled over to the Plan during such period. Such account balance shall be determined without regard to any account reduction caused by the Participant s prior loan(s, if any, from the Plan during the period set forth in the first sentence of this paragraph. Further, such account balance shall include all amounts contributed to the Plan on behalf of the Participant after [date of separation] (or the closest valuation date thereto that are attributable to periods prior to such date, although not preceding the date of marriage.

5 Option 2. This Order assigns to the Alternate Payee an amount equal to percent ( % of the Participant s account balance under the Plan as of [date of division] (or the closest valuation date thereto. Such account balance shall include all amounts maintained under all of the various accounts and/or sub-accounts established on behalf of the Participant as of the date of division, including any amounts transferred or rolled over to the Plan. Such account balance shall be determined without regard to any account reduction caused by the Participant s prior loan(s, if any, from the Plan before the date of division. Further, such account balance shall include all amounts contributed to the Plan on behalf of the Participant after [date of division] that are attributable to periods prior to such date. Option 3. This Order assigns to the Alternate Payee an amount equal to one hundred percent (100% of the Participant s account balance under the Plan as of [date of division] (or the closest valuation date thereto. Such account balance shall include all amounts maintained under all of the various accounts and/or sub-accounts established on behalf of the Participant as of the date of division, including any amounts transferred or rolled over to the Plan. Such account balance shall be determined without regard to any account reduction caused by the Participant s prior loan(s, if any, from the Plan before the date of division. Further, such account balance shall include all amounts contributed to the Plan on behalf of the Participant after [date of division] that are attributable to periods prior to such date. Option 4. This Order assigns to the Alternate Payee an amount equal to $. Notwithstanding the preceding sentence, in no event shall the amount assigned to the Alternate Payee pursuant to this Order exceed 100% of the value of the Participant s account balance under the Plan (determined without regard to any account reduction caused by the Participant s prior loan(s, if any from the Plan as of the date of distribution to the Alternate Payee (or the closest valuation date thereto. The following shall apply to any of the options elected above: The Alternate Payee s portion of the benefits described above shall be allocated on a prorata basis from all of the accounts and/or investment options maintained under the Plan on behalf of the Participant. Such benefits shall also be segregated and separately maintained in a nonforfeitable account established on behalf of the Alternate Payee. The following shall apply if options 1, 2 or 3 are elected above: The account established on behalf of the Alternate Payee will initially be established in the same fund mix percentages as the Participant account. Additionally, the Alternate Payee s account shall be credited with any interest and investment income (or losses attributable thereon from [date of separation if option 1 is elected, or date of division if options 2 or 3 are elected] (or the closest valuation date thereto until the date of total distribution to the Alternate Payee. 9. Commencement Date and Form of Payment to Alternate Payee: If the Alternate Payee so elects, the benefits shall be paid to the Alternate Payee as soon as administratively feasible following the date this Order is approved as a QDRO by the Plan Administrator, or at the earliest date permitted under the terms of the Plan or

6 Section 414(p of the Code, if later. Benefits will be payable to the Alternate Payee in any form or permissible option otherwise available to participants under the terms of the Plan, except a joint and survivor payment annuity with a subsequent spouse of the Alternate Payee as beneficiary. The Alternate Payee will be responsible for paying any applicable withdrawal charges imposed under any investment account(s with respect to his or her share under the Plan. In the event that the Alternate Payee commences his or her benefits in the form of a monthly annuity, such benefits shall be based on the life expectancy of the Alternate Payee. 10. Alternate Payee s Rights and Privileges: On and after the date that this Order is deemed to be a QDRO, but before the Alternate Payee receives a total distribution under the Plan, the Alternate Payee shall be entitled to all of the rights and election privileges that are afforded to Plan beneficiaries, including, but not limited to, the rules regarding the right to designate a beneficiary for death benefit purposes and the right to direct Plan investments, only to the extent permitted under the provisions of the Plan. 11. Death of Alternate Payee: In the event of the Alternate Payee s death prior to receiving the full amount of benefits assigned under this Order and under the benefit option chosen by the Alternate Payee, such Alternate Payee s beneficiary(ies, as designated on the appropriate form provided by the Plan Administrator (or, in the absence of a beneficiary designation, as designated by the City of Los Angeles Deferred Compensation Plan Document, or otherwise the Alternate Payee s estate, shall receive the remainder of any unpaid benefits under the terms of this Order. 12. Death of Participant: Should the Participant predecease the Alternate Payee, such Participant s death shall in no way affect the Alternate Payee s right to the portion of the benefits as stipulated herein. 13. Savings Clause: This Order is not intended, and shall not be construed in such a manner as to require the Plan: a. To provide any type or form of benefits or any option not otherwise provided under the Plan; b. To provide increased benefits to the Alternate Payee; c. To pay any benefits to the Alternate Payee which are required to be paid to another alternate payee under another order previously determined to be a QDRO; or d. To make any payment or take any action which in inconsistent with any federal or state law, rule, regulation or applicable judicial decision. 14. Certification of Necessary Information: All payments made pursuant to this Order shall be conditioned on the certification by the Alternate Payee and the Participant to the Plan Administrator of such information as the Plan Administrator may reasonably require from such parties to make the necessary calculation of the benefit amounts contained herein.

7 15. Continued Qualified Status of Order: It is the intention of the parties that this QDRO continue to qualify as a QDRO under Section 414(p of the Code, as it may be amended from time to time, and that the Plan Administrator shall reserve the right to reconfirm the qualified status of the Order at the time benefits become payable hereunder. 16. Tax Treatment of Distributions Made Under This Order: For purposes of Sections 402(a(1 and 72 of the Code, or any successor Code Section, any Alternate Payee who is the spouse or former spouse of the Participant shall be treated as the distributee of any distribution or payments made to the Alternate Payee under the terms of this Order, and as such, will be required to pay the appropriate federal income taxes on such distribution. 17. Parties Responsibilities in Event of Error: In the event that the Plan inadvertently pays the Participant any benefits that are assigned to the Alternate Payee pursuant to the terms of this Order, the Participant shall immediately reimburse the Alternate Payee to the extent that the Participant has received such benefit payments by paying such amounts directly to the Alternate Payee within ten (10 days of receipt. In the event that the Plan inadvertently pays the Alternate Payee any benefits that are to remain the sole property of the Participant pursuant to the terms of this Order, the Alternate Payee shall immediately reimburse the Participant to the extent that the Alternate Payee has received such benefit payments by paying such amounts directly to the Participant within ten (10 days of receipt. 18. Effect of Plan Termination: In the event of a Plan termination, the Alternate Payee shall be entitled to receive his or her portion of the Participant s benefits as stipulated herein in accordance with the Plan s termination provisions for participants and beneficiaries. 19. Continued Jurisdiction: The Court retains jurisdiction over this matter to amend this Order to establish or maintain its status as a qualified domestic relations order under IRC 414(p, as amended and the original intent of the parties as stipulated herein. The Court shall also retain jurisdiction to enter such further orders as are necessary to enforce the assignment of benefits to the Alternate Payee as set forth herein. Petitioner Respondent Date Date APPROVED AS TO FORM CARMEN A. TRUTANICH, City Attorney

8 By CURTIS S. KIDDER, Assistant City Attorney Date: IT IS SO ORDERED. Date: JUDGE OF THE SUPEROR COURT