Section 303-21-003 - Distribution Procedures003.01 If an order is determined to be a qualified domestic relations order, NPERS shall allocate and distribute retirement benefits to the member and the alternate payee according to the terms of the order. Payment of the benefit to the alternate payee shall commence either on the member's retirement date or on the first day of the month immediately following the month in which the alternate payee notifies NPERS of the election to begin payment, but not before the member's earliest retirement date.003.02 If the order pertains to a defined contribution plan, NPERS shall segregate the alternate payee's interest in the member's benefit in a separate account pending distribution. Unless the domestic relations order provides otherwise, the amounts allocated to the alternate payee shall be deducted from each of the member's employer and employee accounts in the same percentage as the total percentage awarded to the alternate payee under the order. The alternate payee shall have the right to allocate the amounts in such account to the various investment options available to members of the plan and shall be subject to the same restrictions upon transfers between investment options as may be applicable to other members of the plan.003.03 If the order pertains to a defined benefit plan, NPERS shall indicate in the member's account file the existence of the qualified domestic relations order. Upon the triggering of a distribution under the plan to the alternate payee or the member, NPERS shall compute the alternate payee's interest in the member's accrued benefit under the order and shall reduce the member's benefit accordingly.003.04 If the order does not specify the form of benefit to be taken by the alternate payee, the alternate payee may select any form of benefit available to the member except a joint and survivor annuity covering the alternate payee and the alternate payee's subsequent spouse003.05 If the alternate payee dies prior to receiving any payment of his or her interest in the member's benefit under a qualified domestic relations order, such interest reverts to the member. If the alternate payee dies after commencement of payments of his or her interest, then the alternate payee's beneficiary is entitled to the balance of the alternate payee's interest under the payment option provided by the order or selected by the alternate payee, except a joint and survivor annuity option with the alternate payee and the alternate payee's subsequent spouse. For purposes of this section, payment of the alternate payee's interest in the member's benefit shall be deemed to have commenced on the earlier of the member's retirement date or on the first day of the month immediately following the month in which the alternate payee notifies NPERS of the election to begin payment, but not before the member's earliest retirement date.303 Neb. Admin. Code, ch. 21, § 003