Md. Code Regs. 22.01.03.07

Current through Register Vol. 51, No. 22, November 1, 2024

Section 22.01.03.07 - Formula for Computation of Plan Benefit

A. Parties to a domestic relations order may use a formula, including a marital share fraction, to determine the amount or percentage of a participant's plan benefit which is payable to an alternate payee if:

(1) The formula is expressed in a format that the Agency understands;

(2) The information necessary to compute the amount or percentage of the plan benefit payable to the alternate payee under the formula is:

(a) Expressly provided in the domestic relations order; or

(b) Readily ascertainable from data in the Agency's records at the time the plan benefitbecomes payable;

(3) Where the plan benefit is payable in regular installments, the formula does not require the Agency to recompute the amount or percentage of the plan benefit that is payable to the alternate payee after the first payment is made; and

(4) Where the formula refers to an amount of time, the formula is expressed in terms of months, and not years or days.

B. The Agency shall recalculate a plan benefit payable under an eligible domestic relations order to the extent required each fiscal year under State Personnel and Pensions Article, Division II, Annotated Code of Maryland.

C. In computing the number of months for purposes of a formula under this regulation, the Agency may not consider partial months in the total number of months.

D. Domestic Relations Orders Which Contain Marital Share Fractions.

(1) If a domestic relations order contains a marital share fraction with a numerically specified numerator, and does not otherwise state how to divide the participant's military service credit, projected service credit, purchased service credit, or unused sick leave credit, then the Agency shall:

(a) Include the participant's military service credit and purchased service credit only in the marital share fraction's denominator; and

(b) Exclude the participant's projected service credit and unused sick leave credit from both the numerator and denominator of the marital share fraction.

(2) If a domestic relations order contains a marital share fraction with a numerically unspecified numerator, and does not otherwise state how to divide the participant's military service credit, projected service credit, purchased service credit, or unused sick leave credit, then the Agency shall:

(a) Include in the marital share fraction's numerator only those months of the participant's military service credit and purchased service credit based on the participant's military service or employment that took place during the marital or other relevant time period;

(b) Include in the marital share fraction's denominator the participant's total months of military service credit and purchased service credit; and

(c) Exclude the participant's projected service credit and unused sick leave credit from both the numerator and denominator of the marital share fraction.

Md. Code Regs. 22.01.03.07

Regulation .07 amended effective 46:3 Md. R. 106, eff. 2/11/2019