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Item 19 - Agreement with Empower Annuity Insurance Company for the Employee Deferred Compensation Plan
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09/19/2023 Regular
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Item 19 - Agreement with Empower Annuity Insurance Company for the Employee Deferred Compensation Plan
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10/24/2023 11:43:40 AM
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10/24/2023 11:35:25 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
19
Date
9/19/2023
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54 <br />No Approval Before Hold Removal: If QC does not approve an Executed DRO before a benefit hold <br />is removed, the Participant will be permitted to elect to receive a distribution if he/she is otherwise <br />eligible. <br />Approved DRO After Hold Removal: If QC approves an Executed DRO after a hold is removed, the <br />QDRO will be applied on a prospective basis only. <br />8. MISCELLANEOUS <br />8.1. Fair Split of Participant’s Benefits <br />QC will not answer questions regarding whether a QDRO has fairly or equitably divided the <br />Participant’s benefits among the Participant and Alternate Payee. Instead, QC’s role is limited to <br />the technical requirements of DRO review and QDRO determination. It is the responsibility of the <br />parties and/or their attorneys to determine what is fair and equitable, and to negotiate the QDRO’s <br />substantive provisions. <br />8.2. Incorrect Payments <br />The Plan Administrator has the right to require the Participant and/or the Alternate Payee to return <br />to the Plan any overpayment. An overpayment is any Plan payment (or portion of a payment) to <br />a party that was not required by the Plan or a QDRO. If the overpayment should have been paid <br />to the other party, the Plan will recover the overpayment from the overpaid party and, in turn, will <br />pay that amount to the other party. <br />8.3. QDROs Issued After Death <br />A DRO will not fail to qualify as a QDRO solely because it was submitted to the Plan Administrator <br />after the death of the Participant or Alternate Payee. For example, if an attorney submits a draft <br />DRO to be preapproved and the Participant or Alternate Payee dies before the DRO is signed by <br />the court, the Plan Administrator would honor an Executed DR O submitted after the Participant’s <br />or Alternate Payee’s death if it otherwise would qualify as a QDRO. <br />8.4. Begin Alternate Payee’s Benefit Payments <br />If QC approves a DRO, and if the Alternate Payee is eligible to begin receiving his/her assigned <br />benefits, the Alternate Payee must contact Empower Retirement at 1-800-338-4015 to obtain the <br />appropriate payment forms and instructions. The Alternate Payee should allow sufficient time <br />subsequent to approval of the DRO for the Plan Recordkeeper to calculate and segr egate the <br />Alternate Payee’s assigned benefit, before contacting Empower Retirement. <br />8.5. Federal Taxes <br />The Internal Revenue Code provides that an Alternate Payee, who is the Participant’s spouse or <br />former spouse, is responsible for all federal taxes on Plan distributions to the Alternate Payee. On <br />the other hand, for distributions to an Alternate Payee who is the Participant’s child or other <br />dependent, the Participant is responsible for all such federal taxes. A QDRO may not change <br />these rules of federal taxation and, as a result, a DRO does not need to identify which party is <br />responsible. If a DRO does address federal taxes, QC will not reject the DRO even if it is <br />inconsistent with federal tax law. However, the Plan Administrator will report distrib utions as <br />required by law, regardless of any conflicting provisions in the QDRO.
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