HBA-LJP H.B. 413 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 413 By: Zbranek Juvenile Justice & Family Issues 2/14/2001 Introduced BACKGROUND AND PURPOSE In a decree of divorce or annulment, the court determines in a qualified domestic relations order the rights of both spouses in a private pension or retirement plan. Under current law, a qualified domestic relations order follows certain guidelines, but does not have a uniform format. As a result, an alternative payee could be divested of the payee's interest if the spouse dies before the Employee Retirement Income Security Act (ERISA) administrator accepts a qualified domestic relations order. House Bill 413 creates a uniform format for a qualified domestic relations order and establishes a cause of action by the alternate payee against a plan administrator or other person, acting in an equivalent capacity. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 413 amends the Family Code to add a chapter relating to qualified domestic relations orders. The bill requires a plan administrator or another person acting in an equivalent capacity for a private pension or retirement plan to accept as a qualified domestic relations order in lieu of any other order, a domestic relations order that is substantially in the same form detailed by the bill (Secs. 10.002 and 10.003). The bill provides that if a plan administrator or another person acting in an equivalent capacity for a plan rejects a qualified domestic relations order, the alternate payee may report that person to the secretary of state. The bill requires the secretary of state, after notice and hearing, to determine whether the plan administrator or other person illegally rejected a qualified domestic relations order and, if so, the secretary of state is required to prohibit the plan administrator or other person from engaging in business in this state. The bill provides that a private employer who provides a private pension or retirement plan to an employee or retiree is liable if an alternate payee incurs a pecuniary loss with respect to the amount of the benefit payable under the plan because of a rejected qualified domestic relations order (Secs.10.004 and 10.005). The bill provides that an alternate payee may recover actual damages and reasonable attorney's fees and costs (Sec. 10.006). EFFECTIVE DATE September 1, 2001.