Conforming domestic relations orders.
San José Municipal Code § 3.49.181
in effect3.49.181 - Conforming domestic relations orders.
A. A "domestic relations order" means any judgment, decree or order, including approval of a property settlement agreement or separation agreement issued by a court of competent jurisdiction which relates to the provision of marital property rights of a participant, and is made pursuant to the state domestic relations law of the state where the marital dissolution or separation occurred.
B. The plan shall only recognize domestic relations orders that the City, in accordance with its authority under Section 3.49.060 and the plan, determines are conforming domestic relations orders.
C. A "conforming domestic relations order" is a domestic relations order that the City determines conforms with the following guidelines:
1. The order may provide for the establishment of a separate account for the nonparticipant spouse under the plan. For purposes of this Section, "nonparticipant spouse" equally refers to current or former spouse of a plan participant.
2. The order may provide, with respect to any separate account established for the nonparticipant spouse, that the nonparticipant spouse shall have the right:
a. To direct the investment of the account in accordance with the provisions of the plan;
b. To elect the time and form of distribution from the options available under the plan, provided that distributions shall not commence earlier than provided in paragraph C.3. below;
c. To designate beneficiaries of the separate account in the event of the nonparticipant spouse's death, in accordance with the procedures provided under the plan;
d. To have all distributions from the account of the nonparticipant spouse made directly to the nonparticipant spouse or his or her beneficiary.
3. To conform, the order:
a. May not accelerate or increase any benefit provided under the plan or create any rights greater than the participant's rights under the plan and under Section 401(a) of the Internal Revenue Code of 1986, and may not conflict in any other way with the plan's distribution provisions or the requirements and limitations of Section 401(a)(9) of the Internal Revenue Code of 1986 as amended; provided that after December 31, 2001, the nonparticipant spouse who has been awarded a separate account may elect to commence distribution of the nonparticipant spouse's separate account prior to the occurrence of a severance event for the participant;
b. May not allow the nonparticipant spouse to make contributions to the plan except to the extent the nonparticipant spouse is an employee or elected official otherwise authorized to become a participant under the plan; and
c. May provide that all distributions made to the nonparticipant spouse shall be made directly to the nonparticipant spouse or beneficiary, as applicable, subject to any direct rollover rights;
4. The order shall also conform with such additional guidelines as the City shall establish from time to time including, with regard to the following:
a. Provision for the withholding of taxes required by applicable law;
b. Provision that the participant and/or the nonparticipant spouse be required to pay any expenses incurred by the City in connection with the order, including, without limitation, the costs of any legal action taken by the City relating to the order;
c. Any requirement that the nonparticipant spouse provide the City with such written requests, consents or instructions as the City may require in accordance with the provisions of the plan; and
d. Provision expressly acknowledging that the City's obligation to the participant is reduced to the extent that payments are to be made to the nonparticipant spouse.
(Ords. 29184, 30625.)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT3PE_IIREPL_CH3.49UNMADECO401PL_3.49.181CODOREORFetched: 11/1/2026