ORDINANCE NO. BL2016-328
An ordinance amending Title 3 of the Metropolitan Code relative to employee benefits to comply with state law regarding assignment of retirement plans benefits pursuant to a qualified domestic relations order (“QDRO”).
WHEREAS, Public Chapter No. 931, adopted by the Tennessee Legislature and effective July 1, 2016, amends the provisions of T.C.A. Section 26-2-105 addressing claims under qualified domestic relation orders (“QDROs”) that local governments are required to honor; and,
WHEREAS, it is appropriate for the Metropolitan Government to amend its retirement plans which are qualified plans under Section 401(a) of the Internal Revenue Code to be consistent with Tennessee law as reflected in Public Chapter No. 931; and,
WHEREAS, the Employee Benefit Board has recommended the provisions set forth in this ordinance.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. Section 3.08.180 of the Metropolitan Code is hereby amended by deleting subdivision B and replacing it with the following:
B. The system will honor claims presented under a qualified domestic relations order (“QDRO”) as provided in T.C.A. Section 26-2-105. A QDRO is defined in section 414(p) of the Internal Revenue Code, subject to the limitations set forth in this subsection B. In addition, such order must apply only to benefits provided under one or more of the following plans within the system:
(i) The plan for pension benefits for credited employee service as provided in section 3.28.080, Chapters 3.32 and 3.40;
(ii) The plan for pension benefits for credited fire and police service as provided in section 3.28.080, Chapters 3.36 and 3.40;
(iii) The plan for pension benefits for credited employee service as provided in section 3.29.080, Chapters 3.33 and 3.40; or
(iv) The plan for pension benefits for credited fire and police service as provided in section 3.29.080, Chapters 3.37 and 3.40.
Section 2. Section 3.08.180 of the Metropolitan Code is hereby amended by deleting subdivision C and replacing it with the following:
C. If a QDRO pertains to a member who has not commenced receiving benefits at the time the QDRO is received by the board, the alternate payee under said QDRO will begin receiving a portion of the benefits otherwise payable to the member, as specified by the order, at the time the member commences benefits. If a QDRO pertains to a member who is already receiving benefits under the plan at the time the QDRO is received by the board, the alternate payee shall receive a portion of the payments being made to the member, as specified by the order, at the time the order is determined by the board to be a QDRO that complies with T.C.A. Section 26-2-105. In no event will the alternate payee be allowed to change the payment method or the timing of the payments.
Section 3. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Bill Pridemore, Kathleen Murphy
|Introduced:||July 19, 2016|
|Passed First Reading:||July 19, 2016|
|Referred to:||Budget & Finance Committee
Personnel, Public Information, Human Relations, and Housing Committee
|Passed Second Reading:||August 2, 2016|
|Passed Third Reading:||August 16, 2016|
|Approved:||August 17, 2016|
Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615/862-6770.