Guide for Drafting an Acceptable Domestic Relations Order for the NC Supplemental Retirement Plans

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 DRO will be sent to Empower, which will respond to the participant and alternate payee (or their attorneys, if any). If the Department determines that a DRO cannot be administered, the Department may respond directly to the participant and/or alternate payee (or their attorneys, if any).

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. Note: A DRO that has been entered by a court does not require an accompanying affidavit or subpoena.

The attached consent form also can be used to authorize the Department to provide account information to a plan participant’s attorney.

Model DRO templates for the NC 401(k) and NC 457 Plans are available on the Department’s website.

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

Fax: (866) 633-5212 

Mail: 

Empower 
Attention: NC 401(k) Plan/NC 457 Plan 
PO Box 56025 
Boston, MA 02205-6025 

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 (here). 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 on our website.

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