When TRS receives the certified copy of the domestic relations order (DRO), TRS will review the order to determine whether it meets all criteria established by laws and rules to be a qualified domestic relations order (QDRO). If it does, the order is an approved or qualified order.
The law requires TRS to complete this review, even if you have used the TRS Model DRO. TRS will notify both parties and their attorneys in writing of its determination.
If TRS determines the DRO is a QDRO,TRS is authorized to make direct payment to the alternate payee as required by the order.
However, TRS will NOT make payment to the alternate payee until an amount or retirement plan benefit becomes payable to the TRS member, retiree, or beneficiary(ies) under applicable laws and rules (such as upon withdrawal (refund) of accumulated contributions and interest, retirement, or death of the TRS participant).
The only exception to this rule is provided in Section 804.005, Texas Government Code, and is described in TRS Model DRO in section entitled “Other Provisions of the Model Order.”
Under this limited exception, TRS may make payment to the alternate payee before payment is made on behalf of the participant if the participant is at least 62 years of age and otherwise eligible to retire without reduction for early age.
If TRS determines the DRO is not a QDRO, the parties and their attorney(s) will be notified in writing that the order is not qualified and the basis for the determination.
The parties may return to court to obtain a revised or amended order that TRS can administer, or the parties may choose some other method of distributing the benefit to the former spouse after the benefit is paid on behalf of the participant.
If TRS does not subsequently receive an amended order that it determines is qualified, TRS will pay only the TRS participant or participant’s beneficiary(ies) without further notification to the former spouse when benefits become payable.
The determination letter is the final notice to the former spouse that TRS cannot make any payment to him or her. If a distribution is made by TRS, the alternate payee must seek payment directly from the participant or the participant’s beneficiary(ies) according to the court’s order.
If the parties return to court to obtain a revised order, there is no time deadline; however, any benefits or amounts that become payable will be paid only to the TRS participant or participant’s beneficiary(ies).
The court that rendered the final decree of divorce or other order dividing property retains continuing jurisdiction to render a DRO that is a qualified order. See Section 9.101, Texas Family Code, et. seq.
Once the revised or amended order is received and approved as a QDRO, any division of benefits would be paid prospectively from the time the revised order is determined by TRS to be a QDRO. If the entire amount payable by TRS to the participant or participant’s beneficiary(ies) is paid out (such as a refund, Partial Lump Sum (PLSO), Deferred Retirement Option Plan (DROP), or monthly retirement annuity) prior to the time TRS receives a revised order, TRS will be unable to pay any amount to the spouse or former spouse, even if the new order is a QDRO.
For this reason, it may be advisable for the spouse or former spouse to file a motion for an amended order as soon as possible and inform TRS in writing along with a copy of the filing and any subsequent court action on the motion.
If the court enters an amended order, a certified copy of the order should be forwarded to TRS so that TRS may review the order and determine if the order is qualified.
As with the original DRO, TRS will review the domestic relations order and determine if it meets the statutory and rule requirements to be a QDRO.
The parties and their attorneys will be notified of the results of the review.