2 Definitions

The definitions below are defined for use in this actuarial standard of practice.

2.1 Actuarial Valuation

The determination, as of a measurement date, of the actuarial present value of a retirement plan benefit and any related benefits.

2.2 Age- or Service-Dependent Benefits

Benefits for which the amount or timing of benefit payments depends on the covered partys age or length of service.

2.3 Allocation Date

The date through which the benefits earned during the marriage are determined. Generally, this is the last day of the allocation period.

2.4 Allocation Method

A method used to determine the portion of retirement plan benefits that is included in marital property.

2.5 Allocation of Retirement Plan Benefits

The allocation of retirement plan benefits into two or more portions: a portion that is fully considered to be marital property and a portion that is not marital property, and perhaps a portion that is determined to be partially marital property.

2.6 Allocation Period

The period over which the benefits earned during the marriage are determined. This is typically the period from the date of marriage (or, if later, the hire date or plan entry date) to the date of marital separation.

2.7 Applicable Law

Federal, state, and local statutes, regulations, case law, and other binding authority that may govern the domestic relations action, the retirement plan or plans, or any other aspect of the actuarys engagement.

2.8 Covered Party

The party in a domestic relations action who is covered by the retirement plan.

2.9 Direct User

A present or prospective client or employer who has the opportunity to select the actuary and is able to communicate directly with the actuary about the actuarys qualifications, work, or recommendations.

2.10 Domestic Relations Action

Prenuptial, postnuptial, separation, divorce, and support agreements, and other domestic relations proceedings.

2.11 Domestic Relations Order (DRO)

A court order dividing retirement plan benefits between the covered party and spouse.

2.12 Judge

The judicial officer presiding over a domestic relations action, or an arbitrator, mediator, or special master acting in a similar adjudicatory capacity.

2.13 Marital Property

Assets of the marital estate as determined under the laws and regulations of the applicable jurisdiction.

2.14 Measurement Date

The date as of which the actuarial present value is determined. The measurement date may be different from the allocation date.

2.15 Qualified Domestic Relations Order (QDRO)

A domestic relations order that satisfies the qualification requirements of Internal Revenue Code (IRC) section 414(p) and section 206(d) of the Employee Retirement Income Security Act of 1974 (ERISA).

2.16 Retirement Plan

An employment-related arrangement for determining the amount and timing of retirement plan benefit payments, eligibility for benefits, etc. A retirement plan may be a defined benefit pension plan, a defined contribution plan, or a hybrid plan with both defined benefit and defined contribution elements. It may be a plan qualified under the IRC, a nonqualified plan of deferred compensation, or a governmental plan sponsored by the United States or its agencies or a state or local government.

2.17 Spouse

A party to the domestic relations action who is not the covered party. Normally, the term refers to the current spouse or former spouse of the covered party, but may on occasion refer to a child (or children) or other party to the domestic relations action.