(a) Exemption from execution, garnishment, or attachment. The right of a participant in that participant’s account balances or any other right or benefit under this Article are not subject to execution, garnishment, attachment, or any other process, and are not assignable, except under an order that qualifies as a domestic relations order under the Internal Revenue Code and meets plan requirements. The Chief Administrative Officer must establish procedures to determine whether the domestic relations order is qualified and must determine the manner and timing of distributions required under the order.
(b) Protection against fraud. A person must not knowingly make a false statement or falsify or allow another to falsify a record of the deferred compensation plan to defraud the plan. A violation of this subsection is a class A violation.
(c) Error in records, repayment, and waiver.
(1) If a change or error in the records results in any participant or beneficiary receiving from the deferred compensation plan more or less than the participant or beneficiary is entitled to receive, the error must be corrected. The payment must be adjusted to pay the correct amount. The Chief Administrative Officer must establish by regulation under method (1) reasonable procedures to correct an error, consistent with plan requirements.
(2) The plan must pay the participant or beneficiary for any underpayment. Except as provided in paragraph (3), a participant or beneficiary who receives excess payments must repay the plan.
(3) The Chief Administrative Officer must establish by regulation under method (1) procedures to waive repayment by a participant or beneficiary who the Chief Administrative Officer determines is without fault when repayment would be against equity and good conscience. The procedure must require the participant or beneficiary to apply for a waiver within 30 days after receiving actual notice of the overpayment and demand for repayment. The notice must inform the recipient about the waiver procedure. The Chief Administrative Officer must waive repayment of an overpayment that the plan made more than 3 years before notifying the participant or beneficiary about the overpayment. If the Chief Administrative Officer waives repayment, the CAO must repay the plan for the overpayment from a source that does not reduce the assets held in trust for other participants and beneficiaries.
(d) Payment of expenses. The County may contribute to the trust to cover operating expenses of the deferred compensation plan. The Board must pay operating expenses of the plan from plan assets or from County assets, as directed by the Chief Administrative Officer. A participating agency must pay the agency’s share of the operating expenses attributable to the participation of the agency’s employees. (1998 L.M.C., ch. 23, § 1; , §§ 8, 15 and 16.)
Editor’s noteThe effective date of the amendments made to this section by , § 8, is the same effective date as 1998 L.M.C., ch. 23, § 1.
1998 L.M.C., ch. 23, § 2, states: The powers and duties of the Board of Investment Trustees regarding the Deferred Compensation Plan of Montgomery County trust take effect when all trustees accept the trust agreement in writing.
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