Sec. 501. Special rules relating to treatment of qualified domestic relations orders
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/bill/113/hr/2117/ih/section-501A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 414(p) is amended by redesignating paragraph
(13)as paragraph
(14)and by inserting after paragraph
(12)the following new paragraph: If a spouse or former spouse of a participant notifies a plan in writing that— an action is pending pursuant to a State domestic relations law (including a community property law), and all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action, and includes with the notice evidence of the pendency of the action, the plan administrator shall, during the segregation period, separately account for 50 percent of such benefits. Any amounts so separately accounted for may not be distributed by the plan during the segregation period. For purposes of subparagraph (A), the term segregation period means the period— beginning on the date of the receipt of the notice, and ending as of the close of the 90-day period beginning on such date (or, if earlier, the date of receipt of a domestic relations order with respect to the participant and the spouse or former spouse or the date the action is no longer pending). The segregation period shall be extended for 1 or more additional periods described in the preceding sentence upon notice by the spouse or former spouse that the action described in subparagraph
(A)is still pending as of the close of any prior segregation period. . Section 206(d)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) is amended by redesignating subparagraph
(N)as subparagraph
(O)and by inserting after subparagraph
(M)the following new subparagraph: If a spouse or former spouse of a participant notifies a plan in writing that— an action is pending pursuant to a State domestic relations law (including a community property law), and all or a portion of the benefits payable with respect to the participant under the plan are a subject of such action, and includes with the notice evidence of the pendency of the action, the plan administrator shall, during the segregation period, separately account for 50 percent of such benefits. Any amounts so separately accounted for may not be distributed by the plan during the segregation period. For purposes of clause (i), the term segregation period means the period— beginning on the date of the receipt of the notice, and ending as of the close of the 90-day period beginning on such date (or, if earlier, the date of receipt of a domestic relations order with respect to the participant and the spouse or former spouse or the date the action is no longer pending). The segregation period shall be extended for 1 or more additional periods described in the preceding sentence upon notice by the spouse or former spouse that the action described in clause
(i)is still pending as of the close of any prior segregation period. . Section 502(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1132(c) ) is amended by redesignating paragraphs
(8)and
(9)as paragraphs
(9)and (10), respectively, and by inserting after paragraph
(7)the following new paragraph: The Secretary may assess a civil penalty against any plan administrator of up to $100 a day from the date of the plan administrator's failure or refusal to provide the information the plan administrator is required to provide under regulations under this Act to prospective alternative payees under a domestic relations order under section 206(d)(3) or to the Secretary or any representative of a prospective alternative payee in connection with such an order. . Section 414(p), as amended by subsection (a), is amended by redesignating paragraph
(14)as paragraph
(15)and by inserting after paragraph
(13)the following new paragraph: Any expenses incurred by a plan with respect to compliance with the requirements of this subsection shall not be allocated to an individual participant but rather shall be allocated among all participants on the basis of the relative value of each participant's share of the assets of the plan, on the basis of a flat amount per participant, or on any other reasonable basis provided for under the plan. . Section 206(d)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)), as amended by subsection (a), is amended by redesignating subparagraph
(O)as subparagraph
(P)and by inserting after subparagraph
(N)the following new subparagraph: Any expenses incurred by a plan with respect to compliance with the requirements of this paragraph shall not be allocated to an individual participant but rather shall be allocated among all participants on the basis of the relative value of each participant's share of the assets of the plan, on the basis of a flat amount per participant, or on any other reasonable basis provided for under the plan. . The amendments made by this section shall apply to plan years beginning after December 31, 2013.
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Sec. 501
Special rules relating to treatment of qualified domestic relations orders
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