HOUSE BILL No. 4388


     March 1, 2001, Introduced by Reps. Vander Veen, Voorhees and Birkholz and referred to the Committee on Senior Health, Security and
Retirement.


        A bill to amend 1991 PA 46, entitled

   "Eligible domestic relations order act,"

   by amending section 1702 (MCL 38.1702).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  As used in this act:

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           (a) "Alternate payee" means a spouse of a participant under

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      a judgment of separate maintenance, or a former spouse, child, or

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      dependent of a participant, who is named in an eligible domestic

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      relations order.

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           (b) "Benefit" means an annuity, a pension, a retirement

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      allowance, or an optional benefit accrued or accruing to a par-

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      ticipant under a retirement system or a postretirement subsidy

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      payable to a participant under a retirement system.

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           (c) "Domestic relations order" means a judgment, decree, or

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      order of a court made pursuant to the domestic relations law of


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      this state and relating to the provision of alimony payments,

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      child support, or marital property rights to a spouse of a par-

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      ticipant under a judgment of separate maintenance, or to a former

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      spouse, child, or dependent of a participant.

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           (d) "Earliest retirement date" means the earliest date on

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      which a participant meets all of the requirements for retirement

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      under a retirement system except for termination of employment.

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           (e) "Eligible domestic relations order" or "EDRO" means a

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      domestic relations order that is considered an eligible domestic

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      relations order under section 11 or that meets all of the follow-

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      ing requirements:

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           (i) The domestic relations order states the name, last known

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      address, and social security number of the participant.

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           (ii) The domestic relations order states the name, last

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      known address, and social security number of the alternate

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      payee.

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           (iii) The domestic relations order states the amount or per-

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      centage of the benefit to be paid to an alternate payee, or the

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      manner under which the retirement system is to determine the

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      amount or percentage of the benefit to be paid to an alternate

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      payee.

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           (iv) The domestic relations order states that it applies to

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      the retirement system and that the retirement system shall make

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      payments to the alternate payee as required under the eligible

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      domestic relations order and this act.

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           (v) The domestic relations order does not require the

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      retirement system to provide a type or form of benefit not



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      provided by the retirement system or a form of payment not

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      provided by this act.

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           (vi) The domestic relations order does not require the

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      retirement system to provide an increased benefit determined on

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      the basis of actuarial value.

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           (vii) The domestic relations order does not require the pay-

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      ment of a benefit to an alternate payee that is required to be

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      paid to another alternate payee under a previously filed eligible

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      domestic relations order.

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           (viii) The domestic relations order is filed:  before

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           (A) BEFORE the participant's retirement allowance effective

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      date.

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           (B) IF THE DOMESTIC RELATIONS ORDER IS FILED AFTER THE

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      PARTICIPANT'S RETIREMENT ALLOWANCE EFFECTIVE DATE, IT IS FILED

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      WITHIN 120 DAYS AFTER A FINAL JUDGMENT OF DIVORCE BETWEEN THE

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      PARTICIPANT AND THE ALTERNATE PAYEE.

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           (f) "Participant" means a member, deferred member, vested

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      former member, deceased former member, or retirant under the

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      retirement system.

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           (g) "Postretirement subsidy" includes, but is not limited

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      to, all of the following:

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           (i) A supplemental annuity.

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           (ii) A supplemental payment to a participant.

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           (iii) A percentage increase to a benefit payable to a

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      participant.

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           (iv) Any other payment to a participant or increase to a

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      benefit payable to a participant, excluding health benefits.


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           (h) "Retirement system" means a public employee retirement

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      system created and established by this state or any political

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      subdivision of this state.

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           Enacting section 1.  This amendatory act does not take

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      effect unless all of the following bills of the 91st Legislature

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      are enacted into law:

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           (a) Senate Bill No. ___ or House Bill No. 4389 (request

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      no. 00284'01 *).

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           (b) Senate Bill No. ___ or House Bill No. 4390 (request

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      no. 00284'01 a *).

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           (c) Senate Bill No. ___ or House Bill No. 4391 (request

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      no. 00285'01 *).
































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