Domestic Relations Orders for the North Carolina Supplemental Retirement Plans

The Supplemental Retirement Income Plan of North Carolina (NC 401(k) Plan) and the North Carolina Public Employee Deferred Compensation Plan (NC 457 Plan) are supplemental, defined contribution plans that are sponsored by the State of North Carolina and are administered by the North Carolina Department of State Treasurer and the North Carolina Supplemental Retirement Board of Trustees (Board). Empower (formerly Prudential Retirement) has been hired by the Department and the Board to serve as the third-party administrator for the NC 401(k) and NC 457 Plans. 

Tab/Accordion Items

A domestic relations order (DRO) is a court order that divides the account of a retirement plan participant – such as a participant in the NC 401(k) or NC 457 Plan – between the participant and an alternate payee (e.g., a former spouse) pursuant to applicable law.

The Department will review a DRO that has been entered by a court to determine whether it can be administered by the NC 401(k) or NC 457 Plan. The Department also will review draft DROs prior to entry by a court to determine whether the DRO could be administered by the NC 401(k) or NC 457 Plan if it were entered by a court.

The Department’s response to a draft or entered domestic relations order will be sent to the person who submitted the DRO with a copy to the participant (unless the participant or participant’s attorney submitted the DRO). The alternate payee or the alternate payee’s attorney also may be copied. 

The request to review a draft DRO must be accompanied by one of the following:

  1. A signed and notarized consent from the plan participant (see attachment); or
  2. A subpoena issued to the Department regarding the participant’s account information for the NC 401(k) Plan and/or NC 457 Plan. 
     

Domestic Relations Orders for the NC Supplemental Retirement Plans

Model DRO templates for the NC 401(k) and NC 457 Plans are available on the Department’s website at www.myncretirement.com/retirees/payments/dro. 

DROs, participant consents, and copies of subpoenas should be submitted to Empower by fax or mail: \

Fax:    (866) 439-8602
Mail:    Empower
Attention: NC 401(k) Plan/NC 457 Plan
P.O. Box 5340
Scranton, PA 18505 

Originals of subpoenas should be submitted to the Department at:

NC Department of State Treasurer Attn: General Counsel
3200 Atlantic Avenue
Raleigh, NC 27604 

Equitable distribution orders and divorce judgments should not be submitted to Empower – either with a domestic relations order or as a substitute for a domestic relations order. 

The plan documents for the NC 401(k) Plan and the NC 457 Plan are available on the Department’s website at https://www.myncretirement.com/governance/boards-trustees-and- committees/supplemental-retirement-board-trustees#PlanDocuments-781. See Section 12.01 of the NC 401(k) Plan and Section 10.2 of the NC 457 Plan. The Board’s Policy on Domestic Relations Orders is available https://www.myncretirement.com/governance/boards-trustees-and-committees/supplemental-retirement-board-trustees#GovernancePolicies-1784. 

The Department does not provide legal or tax advice on domestic relations orders, and no communication or information from the Department should be construed as advice. 

DROs for the TSERS, LGERS, and the other defined benefit pension plans administered by the Department are separate from the DROs for the NC 401(k) and NC 457 Plans and should not be submitted to Empower. For additional information, please see the Department’s website at www.myncretirement.com/retirees/payments/dro. 

 

DRO Process for the Supplemental Retirement Plans