EXHIBIT #2 SIMPLIFIED PRE-APPROVED QUALIFIED DOMESTIC RELATIONS ORDER

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ALL BOXED FIELDS REQUIRE COMPLETION

PLEASE NOTE: A domestic relations order in substantially the same form as the following model ‘Qualified Domestic Relations Order�?is pre-approved under the rules of the System as a qualified order if appropriately completed. The use of this model order is NOT mandatory; however, an order in other than the pre-approved form must be reviewed by the System’s Legal department for a determination as to its qualification.

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Cause Number, Style and Caption

QUALIFIED DOMESTIC RELATIONS ORDER

Texas Municipal Retirement System

      This Order is intended to meet the requirements for a "qualified domestic relations order" relating to the TEXAS MUNICIPAL RETIREMENT SYSTEM, hereinafter called the "Plan". This Order is an integral part of the Decree of Divorce signed on DATE DIVORCE WAS GRANTED. In compliance with those requirements the following is specified:

      1. This qualified domestic relations order assigns a portion of the benefits payable under the Plan to NAME OF ALTERNATE PAYEE in recognition of (HIS/HER) marital rights in NAME OF PARTICIPANT's benefits payable under the Plan.

      2. Participant in the Plan is NAME OF PARTICIPANT, whose last known mailing address is PARTICIPANT'S ADDRESS, whose birth date is BIRTH DATE, and whose Social Security Number is NUMBER.

      3. Alternate Payee is NAME OF ALTERNATE PAYEE, whose last known mailing address is ALTERNATE PAYEE'S ADDRESS, whose birth date is BIRTH DATE, and whose Social Security Number is NUMBER. Participant and Alternate Payee became married on DATE OF MARRIAGE.

      4. A portion of any benefit payable with respect to Participant which Participant, or Participant's designated beneficiary, surviving spouse, or estate may become entitled to receive from the Plan, by way of a return of accumulated contributions or by way of any annuity that may become payable as a result of Participant's participation in the Plan is hereby awarded to Alternate Payee, such portion to be determined by multiplying FRACTION by the Community Property Ratio based on (select and complete one of the following):

  ____ accumulated contributions between the following dates:

                  ___________________ and ___________________.

            ____ total creditable service between the following dates:

                  ___________________ and ___________________.

      5. The provisions of 34 Texas Administrative Code, §129.13 and §129.14 are incorporated herein by reference.

            SIGNED this _____ day of _______________, _____.

                              ______________________________

                                    JUDGE PRESIDING 

 

TEXAS ADMINISTRATIVE CODE

TITLE 34. PUBLIC FINANCE

Part V. Texas Municipal Retirement System

Chapter 129. Domestic Relations Orders

The following §129.13 and §129.14 were adopted to be effective January 10, 1996.

§129.13. Form of Qualified Domestic Relations Order

      (a) The following form has been pre-approved by the retirement system as meeting the requirements of this title for a qualified order. A qualified domestic relations order in substantially the following form incorporates by reference the definitions set forth in this section and the provisions set forth in §129.14 of this title (relating to Provisions Incorporated by Reference).

      (b) It is the responsibility of the parties to insert the correct information in the pre-approved form at those places marked by parentheses enclosing capital letters, and to provide the system with a certified copy of the order after it has been entered.

      (c) The term "community property ratio" as used in the pre-approved form shall mean the ratio that contributions and interest deposited to Participant's individual account with the retirement system between the dates shown bears to Participant's total contributions and interest at time of retirement or withdrawal of accumulated contributions if "accumulated contributions" is shown in the order to be the basis for division.

      (d) The term "community property ratio" as used in the pre-approved form shall mean the ratio that Participant's credited service between the dates shown bears to Participant's total credited service at time of retirement or withdrawal of accumulated contributions if "total credited service" is shown in the order to be the basis for division.

      (e) The order shall not be considered qualified unless it clearly reflects which of the ratios described above is intended to be used in computing the division of benefits.

      (f) The fraction inserted in paragraph 4 of the pre-approved form customarily would be one-half; however, nothing in this section shall preclude the parties inserting any fraction that is intended to control the division of the benefit.

      (g) The dates inserted in paragraph 4 of the pre-approved form customarily would be the dates the marriage began and ended; however, nothing in this section shall preclude the parties inserting any dates that are intended to control the division of the benefit.

§129.14. Provisions Incorporated by Reference

      An order on the form set forth in §129.13 of this title (relating to Form of Qualified Domestic Relations Order) expressly incorporates all of the following by reference:

(1) The order shall not be interpreted in any way to require the Plan to provide any type or form of benefit or any option not otherwise provided under the Plan.

(2) The order shall not be interpreted in any way to require the Plan to provide increased benefits determined on the basis of actuarial value.

(3) The order shall not be interpreted in any way to require the Plan to pay any benefits to an/any Alternate Payee named in the order which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order.

(4) The order shall not be interpreted in any way to require the payment of benefits to Alternate Payee before the retirement of Participant, the distribution of a withdrawal of contributions to Participant as authorized by the statutes governing the Plan, or other distribution to Participant required by law.

(5) If the Plan provides for a reduced benefit upon "early retirement", the order shall be interpreted to require that, in the event of Participant's retirement before normal retirement age, the benefits payable to Alternate Payee shall be reduced in a proportionate amount.

(6) The order shall not be interpreted to require the designation of a particular person as the recipient of benefits in the event of Participant's death, or to require the selection of a particular benefit payment plan or option.

(7) In the event that, after the date of the order, the amount of any benefit otherwise payable to Participant is increased as a result of amendments to the law governing the Plan, Alternate Payee shall receive a proportionate part of such increase unless such an order would disqualify the order under the rules the Plan has adopted with regard to qualified domestic relations orders.

(8) In the event that, after the date of the order, the amount of any benefit otherwise payable to Participant is reduced by law, the portion of benefits payable to Alternate Payee shall be reduced in a proportionate amount.

(9) If, as a result of Participant's death after the date of the order, a payment is made by the Plan to Participant's estate, surviving spouse, or designated beneficiaries, which payment does not relate in any way to Participant's length of employment or accumulated contributions with the Plan, but rather is purely a death benefit payable as a result of employment or retired status at the time of death, no portion of such payment is community property, and Alternate Payee shall have no interest in such death benefit.

(10) If the board of trustees of the Plan has by rule provided that, in lieu of paying an alternate payee the interest awarded by a qualified domestic relations order, the Plan may pay the alternate payee an amount that is the actuarial equivalent of (a) an annuity payable in equal monthly installments for the life of the alternate payee, or (b) a lump sum, then and in that event the Plan is authorized to make such a payment under the order.

(11) All payments to Alternate Payee under the order shall terminate upon Alternate Payee's death or at such earlier date as may be required as a result of the retirement option selected by Participant.

(12) All benefits payable under the Plan, other than those payable under paragraph 4 of the order to Alternate Payee, shall be payable to Participant in such manner and form as Participant may elect in his/her sole and undivided discretion, subject only to Plan requirements.

(13) Alternate Payee is ORDERED to report any retirement payments received on any applicable income tax return, and to promptly notify the Plan of any changes in Alternate Payee's mailing address. The Plan is authorized to issue a Form 1099R on any direct payment made to Alternate Payee.

(14) Participant is designated a constructive trustee for receiving any retirement benefits under the Plan that are due to Alternate Payee but paid to Participant. Participant is ORDERED to pay the benefit defined in this paragraph directly to Alternate Payee within three days after receipt by Participant. All payments made directly to Alternate Payee by the Plan shall be a credit against this order.

(15) The Court retains jurisdiction to amend the order so that it will constitute a qualified domestic relations order under the Plan even though all other matters incident to this action or proceeding have been fully and finally adjudicated.