Sec. 402. Special rules relating to treatment of qualified domestic relations orders
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/bill/113/s/1979/is/section-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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: 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 receipt by the plan of the notice under clause (i), and ending on the earlier of— 90 days after the date of receipt of such notice, or the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending. The segregation period shall be extended for 1 or more additional periods described in subclause
(I)upon notice by the spouse or former spouse that the action described in clause (i)(I)(aa) is still pending as of the close of any prior segregation period. . Section 414(p) of the Internal Revenue Code of 1986 is amended— by redesignating paragraph
(13)as paragraph (14); and by inserting after paragraph
(12)the following: 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 receipt by the plan of the notice under clause (i), and ending on the earlier of— 90 days after the date of receipt of such notice, or the date of receipt of a domestic relations order with respect to the participant and the prospective alternate payee or the date on which the action is no longer pending. The segregation period shall be extended for 1 or more additional periods described in clause
(i)upon notice by the spouse or former spouse that the action described in subparagraph (A)(i)(I) is still pending as of the close of any prior segregation period. . Section 502(c), as amended by section 312, of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1132(c) ) is amended— by redesignating paragraphs (8), (9), (10), (11), and
(12)as paragraphs (9), (10), (11), (12), and
(13)respectively; and by inserting after paragraph
(7)the following: The plan administrator shall provide information regarding the benefit to prospective alternative payees under a domestic relations order under section 206(d)(3) or any representative of a prospective alternative payee in connection with such an order. 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 such information. . Section 502(a)(6) of such Act ( 29 U.S.C. 1132(a)(6) ), as so amended, is amended by striking or
(11)and inserting (11), or
(12). The amendments made by this section shall apply to plan years beginning after December 31, 2014.
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Sec. 402
Special rules relating to treatment of qualified domestic relations orders
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