Section 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, 88-331, 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: Click Here To View Image
(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(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: Click Here To View Image
(B) 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;(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(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: Click Here To View Image
(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 member's or former member's with vested benefit status withdrawal of accumulated contributions or hypothetical account balance, if any; or(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;(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(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, 88-331, 88-334 or 88-336, HRS, 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: Click Here To View Image
(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(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 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 retirant 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(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 7/1/2020] (Auth: §§ 88-28 and 88-93.5) (Imp: § 88-93.5)