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(1)

THE DEFINED CONTRIBUTION PENSION PLAN OF THE AGC-INTERJ.~ATIONALUNION OF OPERATING ENGINEERS

LOCAL 701 PENSION TRUST FUND TIlE DEFINED BENEFIT PENSION PLAN OF

AGC-INTERL~ATIONALUNION OF OPERA.TING ENGINEERS LOCAL 701 PENSION TRUST FUND

DOlVIESTIC RELATIONS ORDER PROCEDURE

ScopeofProcedure. This procedure is adopted by the Board of Trustees of The Defined Contribution Pension Plan of the AGC-International Union of Operating Engineers Local 701 Pension Trust Fund and The Defined Benefit Pension Plan of AGC-Inten1ational Union of Operating Engineers Local 701 Pension Trust Fund ("Plans") pursuant to Section 414(p) of the Internal Revenue Code of 1986, as amended ("Code"). This procedure is adopted to facilitate compliance with applicable law and is not intended to expand on or restrict the

requirements of applicable law.

Definitions. For purpose of this procedure, a "domestic relations order" ll1eans any judgluent, decree, or order (including approval of a property settlement agreement) which:

(1) Relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a participant; and

(2) Is luade pursuant to a state domestic relations law (including a con11uunity property la\v).

For purposes of this procedure, an "alternate payee" means any spouse, former spouse, child, or other dependent of a Plan patiicipant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under the Plan with respect to the participant.

;Qelivering Orders to Board of Trustees. Any domestic relations order which purports to create or recognize the existence of an alternate payee's right to, or assigns to an alternate payee the right to receive all or a portion of the benefits payable with respect to a participant under the Plans should be delivered to the Board of Trustees at the following address:

Board of Trustees

AGC-International Union of Operating Engineers Local 701 Trust Fund 15-82nd DRIVE, SUITE 200 GLADSTONE OR 97027

(2)

Anyone receiving a domestic relations order on behalf of the Plans shall promptly forward the order to the Board of Trustees at the above address.

Notice of Receipt of Order. Upon receipt of any order which purports to be a domestic relations order, the Board of Trustees shall promptly cause the participant and each alternate payee to be notified of the receipt of the order and the Plans' procedures for determining whether such order is a qualified domestic relations order. Analternate payee shall be permitted to designate a representative for receipt of copies of notices that are sent to the alternate payee with respect to a domestic relations order.

Procedure for Determining Status of Order. The Board of Trustees shall determine and notify the participant and each alternate payee within a reasonable period after receipt of an order whether it is a qualified domestic relations order. The Plans' procedure for determining the qualified status of a domestic relations order shall be as follows:

1. The Board of Trustees through its agents shall determine whether the affected participant's benefits are in pay status. If they are or they become payable during any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined (by the Board of Trustees, by a court of competent jurisdiction, or otherwise), the Board's agents shall separately account for the amounts which would have been payable to the alternate payee during such period if the order had been determined to be a qualified domestic relations order.

If, within the I8-month period beginning with the date on which the first paYment would be required to be made under the order, the order (or modification thereof) is determined to be a qualified domestic relations order, the Board of Trustees shall cause the segregated amounts (including any interest thereon) to be paid to the person or persons entitled thereto.

If, within that I8-month period, (a) it is determined that the order is not a qualified domestic relations order or (b) the issue as to whether such order is a qualified domestic relations order is not resolved, then the Board of Trustees shall cause the segregated amounts (including any interest thereon) to be paid to the person or persons who would have been entitled to such amounts if there had been no order.

Any determination that an order is a qualified domestic relations order which is made after the close of the I8-month period shall be applied prospectively only.

2. The Board's agents shall review the order for determination of factual accuracy, consistency with Plan administrative practices and compliance with the criteria set forth in Exhibit A, which is attached hereto and incorporated by reference herein.

3. Ifnecessary, the Board's agents will forward their determinations for review by legal counselor the Plan consultant of all or any portion of those determinations.

4. Legal counselor the Plan consultant shall review the order as requested and shall forward their recommendations to the Board's agents.

(3)

5. The agents shall then forward the order to the Board of Trustees with their recommendations as to whether the order is a qualified domestic relations order.

6. The Board of Trustees shall review the recommendations of its agents and of legal counselor the consultant, if any, and shall make a determination whether the order is qualified.

Notwithstanding the determination that an order is a qualified domestic relations order, the Board of Trustees and its agents shall work with participants, alternate payees, and their representatives both before and after the order is received to ensure that the order is qualified and is consistent with the Plan administrative practice and to resolve all questions necessary for the proper administration of the Plan.

Notice Regarding Status of Order. If the Board of Trustees determines that the order is qualified, it shall direct its agents to so notify the participant and each alternate payee, and the Board's agents shall itnplement the order.

If the Board of Trustees determines that the order is not qualified, it shall direct its agents to so notify the participant and each alternate payee of the determination, stating the reasons for the determination, with specific reference to the paragraph or paragraphs of Code Section 414(p) or the terms of the Plan or the facts upon which the determination is based and shall describe any additional material or information required and explain why it is necessary.

Resubmission of Order. If an order which has been determined to not be

qualified is refiled with the Board of Trustees, the above procedure for review of the initial order shall be used to determine if the revised order is qualified.

(4)

THE DEFINED CONTRIBUTION PENSION PLAN OF THE AGC-INTERNATIONAL UNION OF OPERATING ENGINEERS

LOCAL 701 PENSION TRUST FUND THE DEFINED BENEFIT PENSION PLAN OF

AGC-INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 701 PENSION TRUST FUND

SAMPLE NOTICE OF RECEIPT

[Participant]

[Alternate Payee]

Subject: Defined Contribution Pension Plan of the AGC-International Union of Operating Engineers Local 701 Pension Trust Fund Defined Benefit Pension Plan of AGC-International Union of Operating Engineers Local 701 Pension Trust Fund

Dear [Participant] and [Alternate Payee]:

You are hereby notified that on [date], the subject Plans received a domestic relations order in the form of [a divorce decree, a support order, a judgment]with respect to [Participant]and [Alternate Payee].

A copy of the Plans' procedure for determining the qualified status of a domestic relations order is enclosed.

If you wish, you may designate a representative to receive copies of notices that are sent to you with respect to the domestic relations order.

If you have questions regarding the enclosed procedure, you may contact _ _ _ _ _ _ _ _ _ at the above telephone number and address.

Very truly yours,

(5)

THE DEFINED CONTRIBUTION PENSION PLAN OF THE AGe-INTERNATIONAL UNION OF OPERATING ENGINEERS

LOCAL 701 PENSION TRUST FUND THE DEFINED BENEFIT PENSION PLAN OF

AGe-INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 701 PENSION TRUST FUND

EXHIBIT A

The following determinations will be made vvith respect to any order received by the Board of Trustees which purports to be a domestic relations order:

1. Whether what is received is a judgment, decree, or order (including approval of a property settlement agreement), all referred to as an "order."

2. Whether the order is a "domestic relations order," namely whether it:

(a)

_ (b)

_ (c)

relates to the provision of child support, alimony payments, or marital property rights,

to a spouse, former spouse, child or other dependent of the pmiicipant ("alternate payee"), and

is made pursuant to a state domestic relations law (including a community property law).

3. Whether the domestic relations order creates or recognizes the existence of an alternate payee's right to, or assigns to an alten1ate payee the right to receive all or a portion of the benefits payable vvith respect to a Plan participant.

4. Whether the domestic relations order clearly specifies:

(a)

_ (b)

(c) (d)

the name and last known mailing address (if any) of the participant and the name and mailing address of each alteluate payee covered by the order,

the amount or percentage of the participant's benefits to be paid by the Plan to each alternate payee, or the lYlanner in which such amount or percentage is to be determined,

the number of payments or period to which the order applies, and the plan to which the order applies.

(6)

_ (a) require the Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan, excluding the requirement that benefits be paid:

(1)

_ (2)

_ (3)

on or after the date on which the participant attains (or would have attained) the earliest retirement age (for this purpose the "earliest retirement age" means the earlier of--(A) the date on which the participant is entitled to a distribution under the Plan, or (B) the later of--(i) the date the participant attains age 50, or (ii) the earliest date on which the participant could begin receiving Plan benefits if the participant separated from service);

as if the participant had retired on the date on which such payment is to begin under the order (but taking into account only the present value of the benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement); and

in any form in 'which benefits may be paid under the Plan to the participant (other than in the form of a joint and

survivor annuity with respect to the alternate payee and his or her subsequent spouse).

_ (b)

_ (c)

require the Plan to provide increased benefits (determined on the basis of actuarial value); or

require the payment of benefits to an alten1ate payee 'which are required to be paid to another alternate payee under another order previously deterrnined to be a qualified domestic relations order. 6. Whether the don1estic relations order provides that the former spouse is to be

treated as a spouse for purposes of any qualified joint and survivor annuity or preretirement survivor annuity.

If the answer to each of the items in numbers one through five above is "yes," then the order 'will be detem1ined to be a qualified domestic relations order.

(7)

DEFINED BENEFIT PENSION PLAN OF AGC-INTERN.A.TIONAL

UNIOl'~OF OPERATING ENGINEERS LOCAL 701 PENSION TRUST FUND

AND

DEFINED CONTRIBUTION PENSION PLAN OF THE AGe-INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 701 PENSION TRUST FUND

SUGGESTED LANGUAGE FOR

QUALIFIED DOMESTIC RELATIONS ORDER

1. The Plans to 'which this Order applies are the Defined Benefit Pension Plan of AGC-International Union of Operating Engineers Local 701 Pension Trust Fund (the "Defined Benefit Plan") and the Defined Contribution Pension Plan of the AGC-International Union of Operating Engineers Local 701 Pension Trust Fund (the "Defined Contribution Plan").

2. The nmne and last-lmovvn mailing address of Participant are:

The Social Security nUlnber and date of birth shall be provided to the Plans by separate conespondence if not permitted to be in this order under applicable law.

3. The name and Inailing address of Alternate Payee are:

The Social Security number and date of birth shall be provided to the Plans by separate conespondence ifnot pennitted to be in this order under applicable law.

(8)

4. Alternate Payee is hereby assigned _ _ percent of the benefits accrued by Participant under the Defined Benefit Plan fron1 [date] to and including

[date] , including any early retirement or other subsidy on that assigned benefit as provided in this Order. The benefit earned in any partial benefit determination period at the beginning or end of the assignment period shall be determined by multiplying the benefit earned for that complete determination period times the number of days in that period included in the assignment divided by the number of days in that complete determination period. Alternate Payee is hereby assigned 100 percent of any Defined Benefit Plan benefit increase on that portion of Participant's total accrued benefit that is assigned to Alternate Payee by this Order. To the extent that the benefit increase is not directly related to the Participant's accrued benefit, such as a flat benefit amount, then the Alternate Payee shall get that percentage of a pro rata portion of the increase based on the accrued benefit subject to this Order divided by the Participant's total Defined Benefit Plan accrued benefit.

5. Alternate Payee is hereby assigned _ _ percent of Participant's account balances attributable to covered employment under the Defined Contribution Plan as of

_ _ _ _ _ _ _. To the extent the account balance cannot be determined for a partial period, the account balance for a n1id-period date will be determined by multiplying the contributions allocated to the Participant's account for employn1ent during the period, til11es the number of days in that period included in the assignment divided by the nUlnber of days in the con1plete period. The amount assigned to Alternate Payee shall be separately accounted for and shall be increased or decreased by its pro rata share of the Participant's account's earnings or losses through the last valuation date on or immediately preceding the separation of Alternate Payee's accounts.

(9)

-6. Alternate Payee may elect to have the benefits assigned under

paragraphs 4 and 5 paid in any form in which benefits may be paid under the respective Plan to a participant, except a joint and survivor annuity with respect to Alternate Payee and a subsequent spouse.

7. On advance applicati~nin accordance with the Defined Benefit Plan's procedures, Alternate Payee may elect to receive or to begin receiving benefits under the Defined Benefit Plan on the first day of any month on or after the date on which Participant reaches or would have reached the earlier of the earliest retirement age under the Defined Benefit Plan or the date provided in Code Section 414(p)(4)(B). Alternate Payee may not elect to begin receiving the Defined Benefit Plan benefits assigned under paragraph 4 solely because

Participant is receiving auxiliary disability benefits under the Defined Benefit Plan as defined in Treasury Regulation § lAOl(a)-20, Q&A-I0(c).

8. On advance application in accordance with the Defined Contribution Plan's procedures, Alternate Payee may elect to receive or to begin receiving benefits under the Defined Contribution Plan on the first day of any month on or after the earliest of the date provided under the Defined Contribution Plan or the date on which Participant reaches or would have reached the early retirement age provided in Code Section 414(p)(4)(B).

9. If, pursuant to paragraph 7, Alternate Payee elects to begin receiving the Defined Benefit Plan benefits assigned under paragraph 4 before Participant retires, Alternate Payee's share of the accrued benefit shall be calculated as if Participant had retired on the date on which the payment is to begin (but taking into account only the present value of the benefits actually accrued, and not taking into account the present value of any employer subsidy for early retireluent). IfPmiicipant subsequently retires and receives an early retirement subsidy under the

(10)

Defined Benefit Plan, Alternate Payee shall begin receiving that subsidy on the assigned benefit from participant's retirement date. If Participant retires before or at the same time as Alternate Payee and receives an early retirement subsidy, Alternate Payee shall receive that subsidy on the assigned benefit beginning on Alternate Payee's benefit con1mencement date.

10. If Participant begins receiving auxiliary disability benefits under the Defined Benefit Plan before Alternate Payee begins receiving benefits pursuant to paragraph 7, Participant's disability benefits shall be determined without regard to the amount assigned to Alternate Payee in paragraph 4. If Alternate Payee subsequently begins receiving benefits under the Defined Benefit Plan pursuant to paragraph 7, Participant's disability benefits shall be reduced to reflect the portion of the accrued normal retirement benefit assigned to Alternate Payee in paragraph 4.

11. If Participant dies before his or her am1uity starting date (as defined in Code Section 417(£)(2)), and before Alternate Payee's mmuity starting date, Alternate Payee shall be treated as a surviving spouse of Participant for purposes of the qualified preretirement survivor mmuity requirements of Code Sections 401 (a)(l1) and 417, with respect to 100 percent of Participant's accrued benefits under the Defined Benefit Plan during the period for which benefits are assigned in paragraph 4. To the extent that Alten1ate Payee is treated as

Participant's surviving spouse, any actual spouse of Participant shall not be treated as the surviving spouse. If, as a result of this paragraph, more than one individual is to be treated as a surviving spouse of Participant, the total alnount to be paid in a qualified preretirement survivor annuity under the Defined Benefit Plan may not exceed the amount that would be paid if there were only one surviving spouse.

(11)

4-12. If Participant dies before his or her annuity starting date (as defined in Code Section 417(£)(2)), and before Alternate Payee's annuity starting date, Alternate Payee shall be treated as having a separate interest in the portion of Participant's account balances under the Defined Contribution Plan assigned to Alternate Payee under paragraph 5 and Alternate Payee's separate interest shall not be affected by the Participant's death. No other spouse of Participant shall have any interest in the Alternate Payee's separate interest.

13. If Alternate Payee dies before his or her annuity starting date (as defined in Code Section 417(f)(2)) and no death benefit is payable under the Defined Benefit Plan on Alternate Payee's benefit to anyone else, the Defined Benefit Plan benefits assigned to Alternate Payee under paragraph 4 of this Order shall revert to Participant.

14. If Alternate Payee dies before his or her annuity starting date (as defined in Code Section 417(f)(2)), the portion of Participant's Defined Contribution Plan account balances assigned to the Alternate Payee under paragraph 5 of this Order shall be payable to the Alternate Payee's beneficiaries pursuant to the tenns of the Defined Contribution Plan as if the Alternate Payee was a participant, except the qualified preretirelnent survivor annuity rule shall not apply.

15. Benefits payable subject to this Order shall be adjusted so that the Defined Benefit Plan is not required to provide increased benefits, determined on the basis of actuarial value.

16. The assignment made by this Order shall continue to apply if the Defined Benefit Plan is tenninated with benefits guaranteed by the Pension Benefit Guaranty Corporation ("PBGC"). The Alternate Payee will share in the benefit guaranteed by the PBGC on the

(12)

17. Itis intended that this Order be a qualified domestic relations order under Code Section 414(p), with respect to both Plans, and the provisions hereof shall be administered and interpreted in conformity with that section.

18. The court retains jurisdiction to amend this ai-der for purposes of establishing or maintaining its qualification as a qualified domestic relations order under Code Section 414(p).

References

Related documents

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(G)(i) In the case of any domestic relations order received by a plan— (I) the plan administrator shall promptly notify the participant and any other alternate payee of the receipt

If allocation to the alternate payee is on a percentage basis and the member has retired, FABF will provide the effective date of the retirement, benefit commencement date, number

Benefit payments to the Alternate Payee will cease upon the death of the member, unless otherwise provided by an optional payment plan selected by the member at retirement.

a) If the benefit is paid in the form of an annuity based on the alternate payee's life (i.e., a separate interest QDRO), then survivor benefits may not be paid to the alternate

The Alternate Payee may elect to receive payment from the Plan of the benefits assigned to the Alternate Payee under this Order in any form in which such benefits may be paid under

within the time limit specified in paragraph 3 that the Participant or other Alternate Payee disputes such qualified status, the Secretary shall notify the person claiming that