Order or “QDRO” will not be accepted. COMAR 22.01.03.03B(13). Unlike ERISA
plans, in the absence of an appropriate court order, a participant may take any action
with regard to his or her benefits without any notice or consent. Additionally, an
alternate payee’s rights are entirely derivative of the participant’s rights. To that end,
an alternate payee may not elect beneficiaries or choose retirement options.
2. MSRPS and State System. The MSRPS administers death, disability and retirement
benefits on behalf of more than 400,000 participants in accordance with Division II of
the State Personnel and Pensions Article of the Annotated Code of Maryland. The
MSRPS consists of a number of individual State systems: Correctional Officers’
Retirement System, Employees’ Pension System, Employees’ Retirement System,
Judges’ Retirement System, Legislative Pension Plan, Local Fire and Police System,
Law Enforcement Officers’ Pension System, State Police Retirement System,
Teachers’ Pension System, and Teachers’ Retirement System. A DRO must
specifically identify the name of the individual State system to which it applies.
COMAR 22.01.03.03B(1)(a).
3. Plan Benefit. A DRO must clearly address the types of plan benefits that are to be
divided by the court. The regulations and this Model address the common types of
plan benefits and are designed to give the most commonly used meanings to words
most often encountered in DROs. However, with numerous individual State systems
administered by the Agency, the regulations and this Model cannot address each type
of benefit that may be available to a participant in a particular State system. Before
drafting, attorneys are advised to consult a benefits handbook or contact a benefits
specialist at the Agency to acquaint themselves with the various benefits that are
available under the participant’s State system. Benefits specialists are available by
telephone at (410) 625-5555, or (800) 492-5909. Benefits information, including the
benefits handbook for several of the systems, is also available on the MSRPS website,
www.sra.maryland.gov. A few points should be considered:
a. Allowance. Unless otherwise specified, the term “allowance” is defined by
regulation to include the following: service retirement allowance, disability
retirement allowance, vested allowance, and cost of living adjustments.
Additionally, except when the statute requires payment exclusively to a surviving
spouse, minor child, or dependent parent, the term allowance includes a lump sum
payment of the amount accrued in the Deferred Retirement Option Program on
termination of participation.
b. Marital Share Formula. Under the Board of Trustees’ regulations, the Alternate
Payee’s share of a plan benefit may be expressed as a fixed dollar amount, a fixed
percentage, or a formula that clearly divides a plan benefit. The regulations
provide criteria for the acceptance of a formula to divide a plan benefit. The
Alternate Payee’s share may not exceed the amount of the Participant’s plan
benefit nor can an Alternate Payee be assigned service credit that exceeds the
amount of service credit earned by the Participant.