FINANCE AND ADMINISTRATION CABINET

Kentucky Teachersí Retirement System

(Amendment)

 

††††† 102 KAR 1:320. Qualified domestic relations orders.

 

††††† RELATES TO: KRS 161.220, 161.716, 403.190, 26 U.S.C. 414(p)

††††† STATUTORY AUTHORITY: KRS 161.310(1), 161.700(4)

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.310(1) requires the Board of Trustees of the Kentucky Teachersí Retirement System (KTRS) to promulgate administrative regulations for the administration of the funds of the retirement system. KRS 161.700(4) requires the Board of Trustees of KTRS to promulgate administrative regulations setting forth the requirements, procedures, and forms for the approval and processing of qualified domestic relations orders impacting the benefits of participants of the retirement system. This administrative regulation establishes these requirements.

 

††††† Section 1. Definitions. (1) "Alternate payee" is defined by KRS 161.220(26).

††††† (2) "Benefits" means a monthly service or disability retirement allowance or refund payable at the request of a participant covered by KTRS who terminates employment in a KTRS covered position prior to becoming eligible to receive a retirement allowance.

††††† (3) "Member" is defined by KRS 161.220(4).

††††† (4) "Participant" is defined by KRS 161.220(24).

††††† (5) "Qualified domestic relations orders" or "QDRO" is defined by KRS 161.220(25).

 

††††† Section 2. (1) A QDRO shall state the following:

††††† (a) The memberís name, KTRS member identification number, and last-known mailing address;

††††† (b) The alternate payeeís name and last known mailing address;

††††† (c) Whether the order applies to:

††††† 1. An active account from which the member is not currently receiving a retirement allowance; or

††††† 2. A retired account from which the member is currently receiving a retirement allowance and the date on which the member retired the account;

††††† (d) The date of marriage;

††††† (e) The date of decree of dissolution of marriage;

††††† (f) That the order is for the purpose of property division;

††††† (g) Whether the alternate payee shall receive payments under Option A, Option B, or Option C;

††††† (h) The amount of the participantís monthly retirement allowance or termination refund to be paid by KTRS to the alternate payee as either;

††††† 1. A fixed dollar amount; or

††††† 2. The percentage calculated under Section 7(1) or (2) of this administrative regulation;

††††† (i) When payments shall begin;

††††† (j) When payments shall cease;

††††† (k) That the alternate payee shall be paid in the same form as the participant;

††††† (l) If the alternate payee spouse shall share in the participantís cost of living adjustments if the QDRO awards a fixed dollar amount to the alternate payee;

††††† (m) Who shall be responsible for payment of the KTRS processing fee; and

††††† (n) All information required on the Qualified Domestic Relations Order to Divide Kentucky Teachersí Retirement System Benefits.

††††† (2) A QDRO shall be:

††††† (a) Approved by KTRS as to enforceability and compliance with the requirements of KRS 161.700 and this administrative regulation;

††††† (b) Approved and submitted by the participant and alternate payee or their legal counsel;

††††† (c) Signed by the judge of a court of competent jurisdiction;

††††† (d) Filed with the clerk of the court; and

††††† (e) Certified by the clerk of the court.

 

††††† Section 3. Administrative Provisions. (1) Upon entry of a final divorce decree, the participant shall forward a copy of the decree to KTRS and:

††††† (a) If the participant is a retired member, request:

††††† 1. A Change of Option Following Termination of Marriage form, if the participant wants to change his or her retirement option, which shall be done within sixty (60) days of the final divorce decree;

††††† 2. A Change of Beneficiary form, if the participant had chosen retirement Option I or Option II and does not want to change his or her retirement option, but wants to name a new beneficiary;

††††† 3. A Designation of Beneficiary for KTRS Life Insurance Benefit form, if the participant wants to designate a beneficiary other than his or her estate; or

††††† 4. A W-4P Withholding Certificate for Pension or Annuity Payments or W-4P, if the participant wants to change the amount of federal tax withheld from his or her retirement benefit; or

††††† (b) If the participant is an active member, he or she shall request:

††††† 1. A Designation of Beneficiary for KTRS Retirement Account Balance form, if the participant wants to designate a beneficiary other than his or her estate; or

††††† 2. A Designation of Beneficiary for KTRS Life Insurance Benefit form, if the participant wants to designate a beneficiary other than his or her estate.

††††† (2) Thirty (30) days prior to filing the QDRO with KTRS, the participant or alternate payee shall present a written request for benefits information for divorce purposes. The participant, alternate payee or third party, including the partyís legal counsel, shall provide a completed KTRS Authorization for Release of Information form with the request.

††††† (3)[(a)] For a QDRO directed to an active account from which a participant is not currently receiving a retirement allowance, KTRS may, for the current fiscal year, provide the unaudited salary information electronically submitted to KTRS by[shall forward a KTRS Report for Current Year Earnings and Contributions form to] the participantís employer upon receipt of the written request and release.

††††† [(b) The employer shall return the completed form to KTRS within ten (10) work days.]

††††† (4) If the QDRO is directed to an account from which the participant is not currently receiving a retirement allowance, KTRS shall not project future earnings or future service. KTRS shall provide:

††††† (a) The participantís total accrued service credit, including service credit purchased during the marriage, and the member account balance, including the total amount of accrued contributions and interest, as posted at the end of each fiscal year during the marriage and for which an employer annual report has been received by KTRS and for which the member has not received a refund; and

††††† (b) An estimate of the monthly retirement allowance the participant would receive if the participant retired without a statutory reduction of the basic retirement allowance based upon the participantís final compensation and total accrued service credit as of the date of dissolution of marriage or receipt of the request for information.

††††† (5) If the participant has retired, KTRS shall provide the amount of the participantís monthly retirement allowance, the participantís accumulated account balance at retirement, the total retirement allowance received to date, and the participantís total accrued service credit, including any service credit purchased during the marriage. The parties, their legal counsel, or the court may use the information to decide what portion of the participantís account is marital. KTRS shall not decide whether, or if, any portion of the participantís account is marital and potentially subject to division.

††††† (6) The participant or alternate payee or legal counsel shall submit a Qualified Domestic Relations Order to Divide Kentucky Teachersí Retirement System Benefits form to KTRS for review forty-five (45) days prior to filing the QDRO with the court. If more than one (1) of participantís accounts is subject to classification and division as marital property, a separate QDRO shall be issued for each KTRS account.

††††† (7) KTRS shall not review the QDRO unless it is accompanied by the following:

††††† (a) The KTRS Administrative Regulatory Compliance form, which has been approved by both the participant or alternate payee or their legal counsel;

††††† (b) A fifty (50) dollar nonrefundable processing fee, by certified check or on the attorneyís trust account, made payable to the Kentucky State Treasurer, except that a processing fee shall not be charged for a QDRO issued solely for child support;

††††† (c) The KTRS Confidential Information form, which shall include the participantís and alternate payeeís address, Social Security number, and date of birth;

††††† (d) Copies of the participantís and alternate payeeís signed Social Security cards;

††††† (e) KTRS Authorization for Direct Deposit form; and

††††† (f) Any other documents that are required to confirm additional service credit purchased, or sought to be purchased, for retirement calculation purposes under KRS 161.220 through 161.716, including KTRS Military Service Certification and Affidavit form, with a copy of discharge papers.

††††† (8) Within twenty (20) days of receipt of the QDRO, KTRS shall notify the participant and alternate payee in writing whether the QDRO meets KTRS requirements. If the QDRO meets KTRS requirements, KTRS shall approve the QDRO and circulate an original, signed QDRO for signature by the participant and alternate payee for submission to the court. If the participant or alternate payee is represented by legal counsel, the approved QDRO shall instead be provided to their legal counsel for signature by counsel and submission to the court. KTRS shall forward a W-4P Withholding Certificate for Pension or Annuity Payments form to the alternate payee.

††††† (9) If the QDRO does not meet KTRS requirements, KTRS shall notify the participant and alternate payee in writing, identifying those provisions which are not in compliance and the amendments needed to bring the QDRO into compliance. If the participant or alternate payee is represented by legal counsel, this notice shall instead be provided to their legal counsel. The amended QDRO shall be submitted to KTRS for review and approval prior to filing with the court.

††††† (10) KTRS shall reject any QDRO entered by a court which has not been reviewed or approved by KTRS prior to its submission to the court. KTRS shall notify the participant, the alternate payee, or their legal counsel, and the court in writing, identifying those provisions which are not in compliance and the amendments needed to bring the QDRO into compliance before it shall be accepted by KTRS.

††††† (11) If the QDRO is subsequently amended before filing with the court, the amended QDRO shall be resubmitted to KTRS with a twenty-five (25) dollar nonrefundable processing fee for review and approval.

††††† (12) Following approval by the court, the participant, alternate payee, or legal counsel shall file a certified copy of the QDRO with KTRS.

††††† (a) The QDRO shall not become effective until the certified copy is received by KTRS.

††††† (b) Upon receipt of the certified copy, KTRS shall designate the participantís account for implementation of the QDRO.

††††† (c) While a separate account balance shall not be maintained for the alternate payee, a separate payroll account shall be established.

††††† (d) If the participant is a retired member, payments to the alternate payee shall commence in the calendar month following the date that a certified copy of the QDRO is received by KTRS, if the alternate payee has supplied a correctly executed W-4P[Withholding Certificate for Pension or Annuity Payments] form. If the alternate payee either fails to return the W-4P or does not correctly execute the form, KTRS shall apply the IRS default option of married with three (3) exemptions, which results in no withholding of federal tax. If the alternate payee chooses a different option and then provides a correctly executed W-4P, future payments shall be adjusted.

††††† (e) If the participant is an active member, payments to the alternate payee shall commence in the calendar month in which the participant begins to receive a monthly annuity, if the alternate payee has provided his or her current address, a correctly executed W-4P and banking information as required by subsection (15) of this section. If the alternate payee either fails to return the W-4P or does not correctly execute the form, KTRS shall proceed in the same manner as described in paragraph (d) of this subsection.

††††† (f) If the participant is an active member who withdraws from service prior to eligibility for retirement and requests a refund of his or her accumulated account balance, 102 KAR 1:060 sets forth the requirements for processing payment of the refund to the participant and the alternate payee.

††††† (13) If KTRS is enforcing a QDRO which is subsequently amended or terminated by the court, then either the participant, alternate payee, or legal counsel shall submit a certified copy of the amended QDRO or order of termination to KTRS for processing.

††††† (14) The participant, alternate payee, or legal counsel shall not submit a QDRO that is not final and under consideration by an appellate court.

††††† (15) The alternate payee shall be responsible for notifying KTRS of any change in name, mailing address, or banking information.

††††† (a) KTRS shall provide a Name or Change of Address form or Authorization for Direct Deposit form upon request.

††††† (b) KTRS shall contact the alternate payee at the last known mailing address on file to notify the alternate payee when an annuity benefit subject to the QDRO becomes payable.

††††† (c) Other than sending a notice as established in paragraph[paragraphs (a) and] (b) of this subsection, KTRS shall have no duty or responsibility to search for, or locate, the alternate payee.

††††† (d) If the notification sent to the alternate payeeís last known address is returned due to the alternate payeeís failure to notify KTRS of an address change or if the bank notifies KTRS that the alternate payeeís account has been closed, within sixty (60) days of the return of the notification to the alternate payee or receipt of notification from the bank, the amounts otherwise payable to the alternate payee shall be paid to the participant until a new address or bank account information is provided by the alternate payee.

††††† (e) KTRS shall have no liability to the alternate payee with respect to amounts paid to the participant.

††††† (16) The participant shall be responsible for notifying KTRS in writing of an event which causes benefit payments to the alternate payee spouse, child, or other dependent, to cease.

††††† (a) The participant shall provide KTRS with a certified copy of the alternate payeeís death certificate or marriage certificate. KTRS shall suspend payments due the alternate payee provided that submission of proof of the death or marriage of the alternate payee, if marriage terminates payments under the terms of the QDRO, is received by the beginning of the month following KTRSís receipt of the participantís written notification.

††††† (b) The alternate payee shall also be responsible for notifying KTRS in writing of the alternate payeeís remarriage if, under the terms of the QDRO, that is an event that terminates the alternate payeeís right to receive any payments.

††††† (c) KTRS shall not be responsible for payments made to the alternate payee until it is given timely written notice and documentation of any event terminating those payments.

 

††††† Section 4. A QDRO may apply to a participantís:

††††† (1) Retirement allowance;

††††† (2) Disability retirement allowance; or

††††† (3) Termination refund.

 

††††† Section 5. A QDRO shall not apply to a participantís:

††††† (1) Survivor annuity that becomes payable after the memberís death;

††††† (2) Survivor benefits that become payable after an active contributing memberís death;

††††† (3) Accounts that are not vested at the time of the dissolution of marriage;

††††† (4) Life insurance benefit;

††††† (5) Refund as a result of an error;

††††† (6) Refund of an active or retired account in response to a memberís death;

††††† (7) Health insurance; and

††††† (8) Any other payment or benefit not described in Section 4 of this administrative regulation.

 

††††† Section 6. If an alternate payee has, under the terms of the QDRO, been awarded a share of the participantís annuity benefits and dies before the participant dies, retires, or withdraws his account, the entire remaining account value shall be restored to the participant.

 

††††† Section 7. Calculation and payment. (1)(a) If the participant has retired, the portion of the participantís benefits payable to the alternate payee as a percentage of the participantís total service retirement allowance, disability retirement allowance, or refundable account balance, accrued through the date of dissolution of marriage, that is in excess of the retirement benefits of the alternate payee as provided under KRS 403.190(4), shall be calculated by the following fraction:

††††† 1. The numerator of which shall be the participantís total full and fractional years of creditable KTRS service earned during the marriage, including service credit purchased during the marriage; and

††††† 2. The denominator of which shall be the participantís total full and fractional years of KTRS service credit through the date of retirement.

††††† (b) The resulting fraction shall be converted to a percentage which shall be divided by two (2).

††††† (c) Option C may be utilized if the duration of the retired participant and the alternate payeeís marriage was less than the participantís total full and fractional years of KTRS service at the date of retirement. The parties or their legal counsel shall report the marital years in Option C of the QDRO.

††††† (2)(a) In the case of an active account, the portion of the participantís benefits payable to the alternate payee as a percentage of the participantís total service retirement allowance, disability retirement allowance, or refundable account balance, accrued through the date of dissolution of marriage, that is in excess of the retirement benefits of the alternate payee as provided under KRS 403.190(4), shall be calculated by the following fraction:

††††† 1. The numerator of which shall be the participantís total full and fractional years of creditable KTRS service earned during the marriage, including service credit purchased during the marriage, as reported by the parties or their legal counsel in Option C of the QDRO; and

††††† 2. The denominator of which shall be the participantís total full and fractional years of KTRS service credit as determined by KTRS at the time that the participant retires either by service retirement or disability retirement or requests a refund of his or her account balance.

††††† (b) The resulting fraction shall be converted to a percentage which shall be divided by two (2).

††††† (3) If the participant is or will be receiving a disability retirement allowance, the participantís total annuity benefit for purposes of this administrative regulation shall be calculated under the service retirement formula established under KRS 161.661(5), even if the entitlement period described under KRS 161.661(3) and (4) has not expired.

††††† (4) If an alternate payee has, under the terms of the QDRO, been awarded a share of the participantís disability retirement allowance which is subsequently discontinued, the alternate payee shall not receive a benefit. Further, if a participant remains disabled at the end of his or her entitlement period, pursuant to KRS 161.661(5), the disability benefits shall be recalculated which may result in a lower monthly payment to both the participant and the alternate payee.

††††† (5) If the QDRO is directed to an account from which the participant is not receiving a retirement allowance, the participantís total annuity benefit shall be calculated without inclusion of the discounts required under KRS 161.620(1)(b) and (d).

††††† (a) If at retirement the participant is subject to discounts required under KRS 161.620(1)(b) and (d), and if the QDRO establishes a set dollar amount to be withheld from the retirement benefits that are payable to the participant and to be paid to the alternate payee, KTRS shall reduce the amount to be paid to the alternate payee under the QDRO by the amount of the discounts.

††††† (b) KTRS shall increase the amount paid to the alternate payee in amount equal to any discounts that are subsequently eliminated as the result of the participantís return to work after retirement under the provisions of KRS 161.605(11), upon the participantís resumption of receipt of retirement benefits.

††††† (6) If the QDRO is directed to an account from which the participant is not receiving a retirement allowance, and the participant at issuance of the QDRO is not eligible for calculation of his total annuity benefit based on his three (3) highest salaries as provided under KRS 161.220(9), then his total annuity benefit shall be calculated on his five (5) highest salaries.

††††† (7) The participant may select any retirement option[, but payment to the alternate payee shall be measured as though the participant had chosen Option I, Straight Life Annuity with Refundable Balance, under KRS 161.620 and 102 KAR 1:150].

 

††††† Section 8. Any person who attempts to make KTRS a party to a domestic relations action in order to determine an alternate payeeís right to receive a portion of the annuity benefits payable to the participant shall be liable to KTRS for its costs and legal fees.

 

††††† Section 9. Incorporation by Reference. (1) The following material is incorporated by reference:

††††† (a) "KTRS Authorization for Release of Information", 15 January 2013;

††††† (b)["KTRS Report for Current Year Earnings and Contributions", 14 July 2010;

††††† (c)] "Qualified Domestic Relations Order to Divide Kentucky Teachersí Retirement System Benefits", 14 March 2014;

††††† (c)[(d)] "KTRS Administrative Regulatory Compliance", 14 July 2010;

††††† (d)[(e)] "KTRS Confidential Information", 14 January 2013;

††††† (e)[(f)] "KTRS Authorization for Direct Deposit", 14 July 2010;

††††† (f)[(g)] "KTRS Military Service Certification and Affidavit", 14 July 2010;

††††† (g)[(h)] "KTRS Name or Change of Address", 14 July 2010;

††††† (h)[(i)] "Change of Option Following Termination of Marriage", 15 February 2002;

††††† (i)[(j)] "Change of Beneficiary", February 2002;

††††† (j)[(k)] "Designation of Beneficiary for KTRS Life Insurance Benefit", 15 January 2013;

††††† (k)[(l)] "Designation of Beneficiary for KTRS Retirement Account Balance", 15 January 2013; and

††††† (l)[(m)] "W-4P", 2013.

††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at Kentucky Teachersí Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m.

††††† (3) W-4P may also be obtained at www.irs.gov/pub/irs-pdf/w4p.pdf.

 

ARTHUR GREEN, Chairperson

††††† APPROVED BY AGENCY: December 21, 2015

††††† FILED WITH LRC: January 14, 2016 at noon

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 24 February 2016, at 9:00 a.m. at the offices of the retirement system at 479 Versailles Road, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by Wednesday, 17 February 2016, five (5) working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation until the end of the calendar day on Monday, 29 February 2016. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

††††† CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Kentucky Teachersí Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone (502) 848-8508, fax (502) 573-0199.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Robert B. Barnes

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: This administrative regulation establishes requirements, procedures and forms for the approval and processing of qualified domestic relations orders ("QDRO") by Kentucky Teachers' Retirement System ("KTRS").

††††† (b) The necessity of this administrative regulation: This administrative regulation is necessary to establish and ensure compliance with the amendments to KRS 161.700.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by (1) setting forth the procedures and timelines to be followed in filing a QDRO with KTRS, (2) setting the filing fees, (3) providing the formula for calculating the amount to be paid to the alternate payee, and (4) incorporating the forms required by KTRS.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the effective administration of the statutes by informing KTRS participants, their alternate payees, legal counsel and the courts what is required to expedite approval and implementation of a QDRO.

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: The amendments (1) expand the information which may be provided to retired participants regarding their account balance to permit the parties to determine what portion, if any, of the account balance is attributable to the marital years and may be awarded to the alternate payee, (2) delineate between payments to alternate payees dependent on whether the participant is retired or in active, contributing status or will be receiving a refund of an account balance, and (3) set a time frame for the participant to provide documentation of the event that causes payments to the alternate payee to cease.

††††† (b) The necessity of the amendment to this administrative regulation: To expand the information provided to retired participants, clarify when payments to alternate payees shall begin dependent on whether the participant is retired or in active, contributing status, provide the necessary reference for the proper procedures to follow if a refund is being paid pursuant to the terms of a QDRO, and inform participants of the time frame in which to provide documentation of the event that causes payments to the alternate payee to cease.

††††† (c) How the amendment conforms to the content of the authorizing statutes: The amendments to the administrative regulation ensure that the parties are placed on notice as to what supplemental information may be offered retired participants, when and how payments will be disbursed to alternate payees and of participantís reporting requirements.

††††† (d) How the amendment will assist in the effective administration of the statues: The amendments to the administrative regulation will ensure prompt and accurate payments are made to the participant and the alternate payee.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This administrative regulation applies to participants and alternate payees of participants of KTRS who are subject to a qualified domestic relations order.

††††† (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

††††† (a) List the actions that each of the regulated entities identified in question (3) will have to comply with this administrative regulation or amendment: The participants and their alternate payees will have to adhere to the requirements for obtaining a refund of the account balance. The alternate payees will have to keep the retirement system apprised of current contact and banking information to ensure prompt receipt of their portion of the participantís retirement annuity. Participants will have to provide proof of the event causing payments to the alternate payee to cease in a timely manner.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There will be a $50.00 initial processing fee and a $25.00 processing fee for amended QDROs to be paid by the participant, the alternate payee or shared by both parties as ordered by the court.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Alternate payees will be permitted to access participants' retirement benefits which were previously exempt from distribution during dissolution of marriage.

††††† (5) Provide an estimate of how much it will cost to implement this administrative regulation:

††††† (a) Initially: There is no cost to implement this regulation.

††††† (b) On a continuing basis: Continuing costs will be determined by the number of QDROs filed with KTRS and cannot be quantified at this point.

††††† (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Administrative expenses of KTRS incurred in processing QDROs will be paid via the processing fees.

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: This regulation establishes the fees to be assessed for processing QDROs.

††††† (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation establishes a $50.00 initial processing fee and a $25.00 processing fee for amended QDROs.

††††† (9) TIERING: Is tiering applied? Tiering is not applied, as all participants and alternate payees of participants are treated the same.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

††††† 1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Kentucky Teachers' Retirement System.

††††† 2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 161.700, KRS 161, 310, KRS 161.480, 161.655.

††††† 3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

††††† 4. (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? Less than five hundred dollars ($500) was generated during the first year.

††††† (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? Future revenue generated by this regulation will be dependent upon the number of QDROs filed with KTRS and cannot be quantified at this time.

††††† (c) How much will it cost to administer this program for the first year? The cost in terms of staff time for processing the QDROs was less than a thousand dollars.

††††† (d) How much will it cost to administer this program for subsequent years? Future cost in terms of staff time for processing QDROs will depend upon the number of orders received and cannot be quantified at this time.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-): N/A

††††† Expenditures (+/-): N/A

††††† Other Explanation: