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S.B. 24






Chief Sponsor: Lyle W. Hillyard

House Sponsor: Lorie D. Fowlke

             8      LONG TITLE
             9      Committee Note:
             10          The Retirement and Independent Entities Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Utah State Retirement and Insurance Benefit Act by allowing
             13      certain life insurance benefits to be split in the case of a court order due to a divorce.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines benefits that are subject to a domestic relations order to include a death
             17      benefit provided under a group insurance policy in order to allow the group
             18      insurance policy to be split along with other retirement benefits as part of a
             19      domestic relations order issued by a court for the division of assets; and
             20          .    makes technical amendments.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          49-11-612, as last amended by Laws of Utah 2007, Chapter 130

             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 49-11-612 is amended to read:
             31           49-11-612. Domestic relations order benefits -- Nonassignability of benefits or
             32      payments -- Exemption from legal process.
             33          (1) As used in this section, "domestic relations order benefits" means:
             34          (a) an allowance;
             35          (b) a defined contribution account established under Title 49, Chapter 11, Part 8,
             36      Defined Contribution Plans;
             37          (c) a continuing monthly death benefit established under:
             38          (i) Title 49, Chapter 14, Part 5, Death Benefit;
             39          (ii) Title 49, Chapter 15, Part 5, Death Benefit;
             40          (iii) Title 49, Chapter 16, Part 5, Death Benefit;
             41          (iv) Title 49, Chapter 17, Part 5, Death Benefit;
             42          (v) Title 49, Chapter 18, Part 5, Death Benefit; or
             43          (vi) Title 49, Chapter 19, Part 5, Death Benefit;
             44          (d) a death benefit provided under a group insurance policy under;
             45          (i) Title 49, Chapter 12, Part 5, Death Benefit; or
             46          (ii) Title 49, Chapter 13, Part 5, Death Benefit; or
             47          (e) a refund of member contributions upon termination.
             48          [(1)] (2) Except as provided in Subsections [(2), (3), and (4)] (3), (4), and (5), the right
             49      of any member, retiree, participant, covered individual, or beneficiary to any retirement benefit,
             50      retirement payment, or any other retirement right accrued or accruing under this title and the
             51      assets of the funds created by this title are not subject to alienation or assignment by the
             52      member, retiree, participant, or their beneficiaries and are not subject to attachment, execution,
             53      garnishment, or any other legal or equitable process.
             54          [(2)] (3) The office may, upon the request of the retiree, deduct from the retiree's
             55      allowance insurance premiums or other dues payable on behalf of the retiree, but only to those
             56      entities that have received the deductions prior to February 1, 2002.
             57          [(3)] (4) (a) The office shall provide for the division of [an allowance, defined
             58      contribution account, continuing monthly death benefit, or refund of member contributions

             59      upon termination to former spouses and family members under an order of a court of
             60      competent jurisdiction with respect to domestic relations matters on file with the office]
             61      domestic relations order benefits with former spouses and family members under an order of a
             62      court of competent jurisdiction with respect to domestic relations matters on file with the
             63      office.
             64          (b) The court order shall specify the manner in which the [allowance, defined
             65      contribution account, continuing monthly death benefit, or refund of member contributions]
             66      domestic relations order benefits shall be partitioned, whether as a fixed amount or as a
             67      percentage of the benefit.
             68          (c) [Allowances, continuing monthly death benefits, and refunds of member
             69      contributions] Domestic relations order benefits split under a domestic relations order are
             70      subject to the following:
             71          (i) the amount to be paid or the period for which payments shall be made under the
             72      original domestic relations order may not be altered if the alteration affects the actuarial
             73      calculation of the allowance;
             74          (ii) payments to an alternate payee shall begin at the time the member or beneficiary
             75      begins receiving payments; and
             76          (iii) the alternate payee shall receive payments in the same form as allowances received
             77      by the member or beneficiary.
             78          (d) A court order under this section may not be issued more than 12 months after the
             79      death of the member.
             80          [(4)] (5) In accordance with federal law, the board may deduct the required amount
             81      from any benefit, payment, or other right accrued or accruing to any member of a system, plan,
             82      or program under this title to offset any amount that member owes to a system, plan, or
             83      program administered by the board.
             84          [(5)] (6) The board shall make rules to implement this section.

Legislative Review Note
    as of 11-14-07 12:59 PM

Office of Legislative Research and General Counsel

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