When a retiree divorces or otherwise dissolves a marriage from a spouse designated as the retiree's beneficiary, a retiree may cancel any optional plan elected at the time of retirement and return to the Straight Life Annuity.

Regardless of whether a retiree or a member obtains a divorce, in some divorces, a court may divide an ATRS member's retirement benefits between the parties to the divorce, since retirement benefits earned during the marriage are considered marital property. A Qualified Domestic Relations Order (QDRO) is an order entered by the courts in a divorce that directs ATRS to make direct payment of a portion of a member's retirement benefits to his or her former spouse.

Under the provisions of ATRS, no benefit or distribution of funds may occur until the member applies for retirement or makes an application for a refund.

The information in this section provides an overview of the required ATRS Model QDRO as well as any applicable forms.

The process used for the division of an ATRS member's retirement plan benefit is the Qualified Domestic Relation's Order (QDRO). Act 44 of 2013, Arkansas Code § 9-18-103(b) requires the ATRS Board of Trustees to establish rules for the implementation of a QDRO and to adopt a uniform legal form approved by the legislature. This form is referred to as the ATRS Model QDRO. The current ATRS Model QDRO should be utilized for a divorce with an effective date of January 1, 2009 or after. For a divorce date prior to January 1, 2009, please contact the ATRS Membership Attorney, at 501-682-1517, 1-800-666-2877 or info@artrs.gov to request the applicable ATRS Model QDRO.

This information and the ATRS Model QDRO will not replace the advice of an attorney. You should consult your attorney to protect your interests in your ATRS benefits. Be certain that you understand completely the terms of any proposed court order, including any order based in whole or in part on the ATRS Model QDRO before it is signed by the judge. While ATRS may provide you with information about the ATRS Model QDRO and your ATRS plan benefits and procedures, it cannot provide you with legal advice regarding your divorce or any of its court orders.

ATRS DOES NOT REQUIRE the division of your retirement benefits and it is not the intent of the ATRS Model QDRO to encourage the division of ATRS benefits in a divorce or settlement agreement; only the court can order the division of marital property according to Arkansas law.

The intent of the ATRS Model QDRO is to assist attorneys and members in preparing a court required QDRO that can be accepted and administered by ATRS. Payment is not possible unless the court enters a QDRO that complies with Arkansas Code § 24-7-202 et. seq. and § 9-18-101 et. seq.

In many divorces and/or settlement agreements, the court will order a division of retirement benefits between the spouse (Member) and the ex-spouse (Alternate Payee). The court's order permits the Member's retirement system to pay the Alternate Payee the retirement benefits from the Member's account when the Member retires. Therefore, if you are required by a court order to divide your retirement benefits with your ex-spouse and you are an active or retired member in the process of obtaining a divorce, or you have recently received a divorce, ATRS can help you or your attorney with processing the QDRO.

ATRS can arrange for direct payment to you and to the Alternate Payee for your ATRS retirement benefit. Retirement benefits are annuity funds; therefore ATRS can withhold and send federal taxes to the IRS and state taxes to the proper state agency. In order to authorize ATRS to do this, you must provide ATRS with a copy of the QDRO and a copy of your divorce decree or settlement. The QDRO must be deemed “qualified” by the ATRS membership attorney. ATRS cannot pay benefits under a QDRO until it is signed by the judge, file-marked by the court clerk, and in the member's record. RETIREMENT BENEFITS FROM A QDRO DO NOT VEST UNTIL THE MEMBER HAS RETIRED! If a member dies prior to receiving retirement benefits, only the accumulated contributions can be disbursed in accordance with the QDRO.

If you are assigned a member's retirement plan benefits, you must complete the Alternate Payee Enrollment Form to receive benefits from your former spouse. Payment will not be made to a former spouse without this form.

For more information see QDRO FAQs or by contact the ATRS Membership Attorney at 501-682-1517, 1-800-666-2877, or info@artrs.gov.