HAR §6-40-1. Definitions

Unless a different meaning is plainly required by the context, definitions generally applicable in this chapter are also provided in 88-93.5, HRS, and chapter 88, HRS. As used in this chapter: ‘Benefit the member or former member with vested benefit status is expected to receive” means the benefit the member or former member with vested benefit status is expected to receive without regard to any Hawaii domestic relations order. “Benefit the retirant is receiving” means the benefit the retirant is receiving without regard to any Hawaii domestic relations order. ‘Hawaii domestic relations order” means a domestic relations order that: (1) Creates or recognizes the right of an alternate payee, or assigns to an alternate payee, the right to receive all or a portion of the benefits payable with respect to a member or retirant under the system; (2) Directs the system to disburse benefits to the alternate payee; (3) Clearly specifies: (A) The name and last known mailing address, if any, of the member or retirant: (B) The name and mailing address of the alternate payee covered by the order; 40 2 - 3365 (C) The amount or percentage of the member’s or retirant’s benefits to be paid by the system to the alternate payee, or the manner in which the amount or percentage is to be determined; and (D) That the order applies to the system; and (4) Does not: (A) Purport to require the designation by the member or retirant, of a particular person as the recipient of benefits upon the death of the member or retirant; (B) Purport to require the selection of a particular benefit payment plan or option or to limit the benefit payment plans or options from which the member may select; (C) Require any action on the part of the system contrary to its governing laws or plan provisions other than the direct payment of the benefit awarded to an alternate payee; (D) Make the award to the alternate payee an interest that is contingent on any condition other than those conditions resulting in the liability of the system for payment under its plan provisions; (E) Purport to give to someone other than a member or retirant the right to designate a beneficiary or to choose any retirement plan or option available from the system; (F) Attach a lien to any part of amounts payable with respect to a member or retirant; (G) Award an alternate payee a portion of the benefits payable with respect to a member or retirant under the system and purport to require the system to make a lump sum payment of the awarded portion of the benefits to the alternate payee that are not payable in a lump sum; (H) Purport to require the system, without action by the member, to terminate a member from membership or employment, to refund contributions, or to retire a member; (I) Provide any type or form of benefit, or any option, not otherwise provided by the system; (J) Provide increased benefits, determined on the basis of actuarial value; or 40 3 - )365 (K) Require the system to provide benefits or refunds to an alternate payee that are required to be paid to another alternate payee pursuant to an earlier Hawaii domestic relations order; and (5) Meets the other requirements of section 88-93.5, HRS. [Eff ] (Auth: §88-28 and 88-93.5) (Imp: §88-93.5) 01 §6-40-2 Specification of amount or percentage to be paid or the manner in which the amount or percentage is to be determined. (a) A domestic relations order received by the system prior to a member’s or former member’s with vested benefit status retirement and termination of membership in the system. relating to retirement benefits upon retirement pursuant to sections 88-73, 88-75, 88-79, 88-281, 88-284, 88-285. 88-33 1, 88-334 or 88-336, HRS, and/or withdrawal of accumulated contributions or hypothetical account balance benefits upon termination of membership in the system pursuant to section 88-61, HRS, shall clearly specify the amount or percentage of the benefit the member or former member with vested benefit status is expected to receive, to be paid by the system to the alternate payee, or the manner in which the amount or percentage is to be determined, in the manner set forth in the domestic relations order forms adopted by the board, or by specifying: (1) The monthly retirement allowance under the retirement allowance option elected by the member or former member with vested benefit status, as follows: (A) A percentage of the member’s or former member’s with vested benefit status monthly retirement allowance under the retirement allowance option elected by the member or former member with vested benefit status, determined by the following formula: 40 4 - 5365 _________% ____________________ ___________________ ____________________________________ Months of service credits the system determines has been credited to the member or former member with vested benefit from status (date of marriage) through (date of (fractional divorce) marital X property interest) Total months of service credit the system determines has been credited to the member or former member with vested benefit status upon retirement (B) A percentage of the member’s or former member’s with vested benefit status monthly retirement allowance under the retirement allowance option elected by the member or former member with vested benefit status (C) A dollar amount of the member’s or former member’s with vested benefit status monthly retirement allowance under the retirement allowance option elected by the member or former member with vested benefit status; or (D) None; (2) The refund of accumulated contributions under the retirement allowance option providing for the refund of accumulated contributions elected by the member or former member with vested benefit status, if any, as follows: (A) A percentage of the member’s or former member’s with vested benefit status refund of accumulated contributions under the retirement allowance option providing for the refund of accumulated contributions elected by the member or former member with vested benefit status, if any, determined by the following formula: 40 5 - 365 __________% ___________________ _____________________ Months of service credits the system determines has been credited to the member or former member with vested benefit status from (date of marriage) through (date of (fractional divorce) marital X property interest) Total months of service credit the system determines has been credited to the member or former member with vested benefit status upon retirement (B) A percentage of the member’s or former members with vested benefit status refund of accumulated contributions under the retirement allowance option providing for the refund of accumulated contributions elected by the member or former member with vested benefit status, if any; (C) A dollar amount of the member’s or former member’s with vested benefit status refund of accumulated contributions under the retirement allowance option providing for the refund of accumulated contributions elected by the member or former member’s with vested benefit status, if any; or (D) None; (3) The withdrawal of accumulated contributions and/or hypothetical account balance resulting in or upon a member’s or former member’s with vested benefit status termination of membership in the system, if any, as follows: (A) A percentage of the member’s or former member’s with vested benefit status withdrawal of accumulated contributions and/or hypothetical account balance, if any, determined by the following formula: 40 6 - 5365 _________% ____________________ ___________________ __________________________________ Months of service credits the system determines has been credited to the member or former member with vested benefit status from (date of marriage) through (date of (fractional divorce) marital X property interest) Total months of service credit the system determines has been credited to the member or former member with vested benefit status upon termination of membership (B) A percentage of the member’s or former member’s with vested benefit status withdrawal of accumulated contributions and/or hypothetical account balance, if any; (C) A dollar amount of the membefs or former members with vested benefit status withdrawal of accumulated contributions or hypothetical account balance, if any; or (D) None; (4) The amount or percentage of the benefit the member or former member with vested benefit status is expected to receive, to be paid by the system to the alternate payee: (A) Shall not provide any type of or form of benefit, or any option, not otherwise provided by the system; (B) Shall not provide increased benefits, determined on the actuarial value; (C) Shall not provide benefits to the alternate payee required to be paid to another alternate payee pursuant to an earlier Hawaii domestic relations order; (D) Shall be paid in priority pursuant to section 6-40-13; 40 7 - 3365 (E) Shall not exceed the benefit the member or former member with vested benefit status is expected to receive, less benefits required to be paid to another alternate payee pursuant to an earlier Hawaii domestic relations order; (F) Shall, in the case of a member or former member with vested benefit status who terminates membership in the system by withdrawal of contributions or hypothetical account balance and resumes membership in the system, include no portion of any benefits payable to the member or former member with vested benefit status that result from the resumption of membership after the system’s receipt of the certified copy of domestic relations order determined to be a Hawaii domestic relations order, even if those benefits result in part from reinstatement of service credits initially credited during marriage; and (G) Shall, in the case of a member or former member with vested benefit status who retires and returns to employment requiring active membership in the system, include no portion of any benefits payable to the member or former member with vested benefit status that result from the resumption of membership after the system’s receipt of the certified copy of domestic relations order determined to be a Hawaii domestic relations order; and (5) The payment of the filing fee in effect at the time that the order is submitted, and charges for legal and actuarial services, as follows: (A) The filing fee in effect at the time that the order is submitted to the system shall be paid before the order is processed or reviewed by the system; (B) The charges for legal and actuarial services shall be paid before the system may issue notification of determination on an order; (C) The filing fee in effect at the time that the order is submitted, and charges for legal and actuarial services, shall be paid as follows: (i) A percentage to be paid by the member or former member with vested benefit status; and 40 8 - )365 m (ii) A percentage to be paid by the alternate payee; and (D) The person who requests the review of the order to establish whether the order meets the requirements for a Hawaii domestic relations order shall: (i) Collect and provide payment of filing fees from all parties as stated above, to the system at the time of the request for review of the order is made; and (ii) Collect and provide payment of charges for legal and actuarial services from all parties as stated above, to the system prior to the system’s issuance of a notification of determination on an order. (b) A domestic relations order received by the system after the retirement of a member, former member with vested benefit status, or retirant, relating to retirement benefits following retirement pursuant to sections 88-73, 88-75, 88-79, 88-281, 88-284, 88-285, 88-33 1, 88-334 or 88-336, 1-IRS, shall clearly specify the amount or percentage of the retirement benefit the retirant is receiving, to be paid by the system to the alternate payee, or the manner in which the amount or percentage is to be determined, in the manner set forth in the domestic relations order forms adopted by the board, or by specifying: (1) The amount or percentage of monthly retirement allowance under the retirement allowance option elected by the retirant, if any, as follows: (A) A percentage of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant, determined by the following formula: 40 9 - 3365 Months of service credits the system determines has been credited to the retirant from (date of marriage) through (date of % divorce) (fractional marital x property Total months of service credit the interest) system determines has been credited to the retirant upon retirement (B) A percentage of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant; (C) A dollar amount of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant, not to exceed the total distribution of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant; or (D) None; (2) The commencement of payment of the amount or percentage of monthly retirement allowance under the retirement allowance option elected by the retirant, as follows: (A) The commencement date for payment of the amount or percentage of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant, not to precede the first day of the month following the date upon which the domestic relations order is determined to be qualified as a Hawaii domestic relations order; or (B) Payment of the amount or percentage of the retirant’s monthly retirement allowance under the retirement allowance option elected by the retirant shall commence on 40-10 3365 the first day of the month following the date upon which the domestic relations order is determined to be qualified as a Hawaii domestic relations order; (3) The amount or percentage of the retirement benefit the retirant is receiving, to be paid by the system to the alternate payee: (A) Shall not provide any type of or form of benefit, or any option, not otherwise provided by the system; (B) Shall not provide increased benefits, determined on the actuarial value; (C) Shall not provide retirement benefits to the alternate payee required to be paid to another alternate payee pursuant to an earlier Hawaii domestic relations order; (D) Shall be paid in priority pursuant to section 6-40-13; (E) Shall not exceed the retirement benefit the retirant is receiving, less retirement benefits required to be paid to another alternate payee pursuant to an earlier Hawaii domestic relations order; and (F) Shall, in the case of a rctirant who returns to employment requiring active membership in the system, include no portion of any benefits payable to the retirant that result from the resumption of membership after the system’s receipt of the certified copy of domestic relations order determined to be a Hawaii domestic relations order; and (4) The payment of the filing fee in effect at the time that the order is submitted, and charges for legal and actuarial services, as follows: (A) The filing fee in effect at the time that the order is submitted to the system shall be paid before the order is processed or reviewed by the system; (B) The charges for legal and actuarial services shall be paid before the system may issue notification of determination on an order; (C) The filing fee in effect at the time that the order is submitted, and charges for legal and actuarial services, shall be paid as follows: (i) A percentage to be paid by the retirant; and (ii) A percentage to be paid by the alternate payee: and 40 11 - (D) The person who requests the review of the order to establish whether the order meets the requirements for a Hawaii domestic relations order shall: (i) Collect and provide payment of filing fees from all parties as stated above, to the system at the time of the request for review of the order is made; and (ii) Collect and provide payment of charges for legal and actuarial services from all parties as stated above, to the system prior to the system’s issuance of a notification of determination on an order. (c) For the purposes of this chapter, the number of months of service credits the system determines has been credited to a member, former member with vested benefit status, or retirant during a specified period shall be calculated pursuant to chapter 88, HRS, and chapters 6-21 and 6-29, HAR. [Eff JUL d 1 Zü’20 j (Auth: §88-28 and 88-93.5) (Imp: §88-93.5) §6-40-3 Request for information by a spouse or former spouse regarding member, former member with vested benefit status, or retirant. (a) The request for information form provided by the system shall be used by a spouse or former spouse of a member, former members with vested benefits, or retirant, to make a written request for information relevant to a spouse’s or former spouse’s interest in the member’s, former member’s with vested benefits, or retirant’s benefits. The system may reject as noncompliant with the requirements for a request for information, any request for information that is not in a form provided by the system. The system shall make available on the system’s website the required forms of request for information, approved by the system’s board of trustees at a meeting of the board duly noticed as provided by section 92-7, HRS. (b) Upon receipt of the completed request for information form and a copy of the complaint for divorce or divorce decree, certified by the clerk of the court in which the complaint or decree was filed, the system will provide to the spouse or former spouse information relevant to the spouse’s or former spouse’s interest in the member’s, former member’s with vested benefits, or retirant’s benefits, as of the date of the receipt of the form. (c) The system is not required to notify the member, former member with vested status, or retirant of the system’s receipt of a request for information under this section; provided that the system may confirm whether the system has 40 12 - )365 received a request for information if a member, former member with vested status, or retirant asks the system whether the system has received any requests for information under this section. [Eff I (Auth: §88-28 and 88-93.5) (Imp: §88-93.5) I