(a) If, upon receipt of a domestic relations order, the domestic relations liaison is of the opinion that the order does not comply in all ways with the requirements for a qualified domestic relations order hereunder, the domestic relations liaison shall so state (in the notice to be sent under §109.3 of this title (relating to Notice Regarding Receipt of Order)) and notify the parties that unless they commence action within 90 days to bring the order into compliance with the provisions of this chapter relating to qualified domestic relations orders the order will be determined not to be a qualified domestic relations order. If 60 days have elapsed and neither party has submitted documentation to the system reflecting that action has been commenced to bring the order into compliance, the domestic relations liaison will remind each party by first class mail that unless documentation has been submitted to the system showing that action has been commenced before the expiration of the 90-day period the order will be determined not to be a qualified domestic relations order and the system will pay to the participant any sums that have been withheld up to that date, and shall thereafter make payment of benefits as if no order had been received by the system.
(b) If the domestic relations liaison has made an initial determination under this section that the order does not appear to qualify, the system nonetheless may (but shall not be required to) pay to the participant all or any portion of any benefits to which the participant appears entitled under the order. Any benefits not paid under this subsection shall be retained by the system until they are paid under one of the remaining subsections of this section.
(c) In the event that, in the opinion of the domestic relations liaison, the order is subsequently brought into compliance with the requirements of this chapter for qualified domestic relations orders, the domestic relations liaison shall so notify the parties in writing, and the system will thereafter pay the sums payable under the order in the manner set forth in the order, unless such order is subsequently set aside or modified by a court of competent jurisdiction.
(d) In the event that either party has timely commenced action in accordance with subsection (a) of this section and the domestic relations liaison determines after the expiration of 90 days from the date of mailing of the notice under §109.3 of this title (relating to Notice Regarding Receipt of Order) that the order has not been brought into compliance with the requirements of this chapter for qualified domestic relations orders, the order is not a qualified domestic relations order. The domestic relations liaison shall so notify the parties in writing, and the system will pay to the participant any sums that have been withheld hereunder after the expiration of six months from the date the notice under §109.3 of this title (relating to Notice Regarding Receipt of Order) was mailed (provided that upon good cause being shown prior to the expiration of such six-month period, the time for bringing the order into compliance may be extended for up to two additional six-month periods), and shall thereafter make payment of benefits as if no order had been received.
(e) Upon receipt of a subsequent order that the domestic relations liaison determines qualifies under this chapter, the system will make payment as therein described.
(f) Upon the expiration of 18 months from the date the domestic relations order was received, if the issue of whether or not the order is a qualified domestic relations order has not been resolved within that period of time, the system will pay to the participant all sums that have been withheld hereunder up to that date, and shall thereafter make payment of benefits as if no order had been received by the system.
(g) In accordance with the Act, §841.009, neither the system nor any officials to the system shall be liable for making any payment under this section.

Source Note: The provisions of this §109.9 adopted to be effective January 29, 1988, 13 TexReg 305; amended to be effective January 10, 1996, 21 TexReg 135.