STATE AND LOCAL GOVERNMENT FAQs 1.) When can the Alternate Payee receive benefits from the Plan? When the Participant actually retires and begins receiving benefits. 2.) How long will the Alternate Payee be entitled to receive benefits from the Plan? The Alternate Payee will receive benefits from the Plan for the lifetime of the Participant. In most circumstances, benefit payments will stop upon the death of the Participant, unless the Alternate Payee is designated as the beneficiary for a survivor annuity. 3.) Do all state and local government pension plans accept court orders awarding benefits to an Alternate Payee? No. Before distribution of benefits using a court order is negotiated, it is important to determine that such method of distribution is permitted under the terms of the Plan. 4.) Does an Alternate Payee have the same options under a pension plan administered by a state or local government as are available under a private company or union? No. State and Local governmental pension plans do not fall under the guidelines of ERISA. Therefore, many of the options available to Alternate Payees under a company or union plan are not available under the government plan. 5.) Can benefits be paid in the form of a lump sum benefit? No, with one exception. The portion of the Participant's monthly retirement allowance awarded to the Alternate Payee may not be paid in the form of a lump sum payment. However, if for some reason, the Participant is permitted to make a withdrawal of contributions and interest to the Plan, in some cases, the Alternate Payee may receive a portion of those contributions and interest in the Plan paid in the form of a lump sum. 6.) Can the Participant be required in the DRO to designate the Alternate Payee as the surviving spouse for a joint & survivor annuity under the Plan? In some cases, a DRO may require the Participant to elect a specific retirement option at the time of retirement which provides for a survivor annuity upon the death of the Participant. The Participant could be further required to designate the Alternate Payee as the beneficiary for such survivor annuity. In most instances, this is the only way to establish a benefit payment to the Alternate Payee for the lifetime of the Alternate Payee. However, it should be noted, that requiring the Participant to make a specific benefit election upon retirement is not permitted under all Plans. Return to Request Forms

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