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The DRO should also address the following issues. If it does not QC will review the DRO as if it includes <br />the default provision identified below for that issue. <br />Investment Gains/Losses: The DRO should specify whether the Alternate Payee's share of the <br />Participant's benefits will be credited with investment earnings (which include both gains and <br />losses) from the Assignment Date to the date that the Plan Administrator establishes and funds a <br />separate account for the Alternate Payee ("Segregation Date"). <br />If the DRO is silent on this matter, the Plan Administrator will credit investment earnings to the <br />Alternate Payee from the Assignment Date to the Segregation Date. <br />The Plan Administrator will always credit investment earnings to the Alternate Payee's account <br />from the Segregation Date to the date the Alternate Payee receives payment of his/her benefits. <br />Allocation to Alternate Payee from Participant's Accounts: The DRO should state how the <br />Alternate Payee's assigned benefits shall be allocated from all of the Participant's vested sub - <br />accounts and/or investment funds (excluding any Plan loan) as of the Segregation Date. If the DRO <br />is silent on this matter, the Plan Administrator will administer the QDRO as if it included a provision <br />to allocate the Alternate Payee's assigned benefits on a pro rate basis from all of the Participant's <br />vested sub -accounts and/or investment funds (excluding any Plan loan) as of the Segregation Date. <br />Initial Investment of Alternate Payee's Benefits: The DRO should state how the Alternate <br />Payee's benefits shall be initially invested. If the DRO is silent on this matter, the Plan Administrator <br />will administer the QDRO as if it included a provision for the Alternate Payee's benefits to be initially <br />invested in the same funds and in the same proportion as the Participant's account. The DRO <br />should also state that the Alternate Payee may then elect any investment option that the Plan offers. <br />Participant Loans: If the DRO assigns a percentage of the Participant's account balance to the <br />Alternate Payee, the DRO should specify whether the Participant's Plan loans, if any, will be <br />included or excluded in the Participant's account balance when calculating the Alternate Payee's <br />share of the Participant's benefits. The examples below show that including Plan loan value will <br />increase the amount assigned to the Alternate Payee. <br />Example — 50% assignment / EXCIUSUM loan balance <br />Participant's Total Account Balance $100,000 <br />Participant's Outstanding Loan Balance $20,000 <br />Participant's Account Balance Excluding Loans $80,000 <br />($100,000 - $20,000) <br />50% Assignment to Alternate Payee (0.5 x $80,000) $40,000 <br />Example — 50% assignment / Including loan balance <br />Participant's Total Account Balance $100,000 <br />Participant's Outstanding Loan Balance $20,000 <br />Participant's Account Balance Including Loans $100,000 <br />(loan is not subtracted) <br />50% Assignment to Alternate Payee (0.5 x $100,000) $50,000 <br />50 <br />City Council 19 — 53 9/19/2023 <br />