What You Need to Know About OPM Rules for Sharing Pension After a Divorce
The United States Office of Personnel Management (OPM) regards the United States’ government agency for human resources and personnel policy management. This government agency can authorize pension payments to former spouses following a divorce. Here is what you need to know about OPM rules for sharing a pension after a divorce.
The OPM sets out rules for pensions that fall under either the Federal Employees Retirement System (FERS) or the Civil Service Retirement Systems (CSRS). A divorce can result in the division of these government pensions, providing former spouses with payments to financially support them following the divorce. To receive these benefits, former spouses must file clear and specific court orders with the OPM; if these requirements are met, the OPM will distribute these payments to the entitled party.
Related: Pension Rights After Divorce in California
OPM Rules for FERS and for CSRS
The OPM states the following for sharing a pension after a divorce:
1. The court order must direct OPM to pay a portion of the monthly CSRS or FERS benefits
The spouse’s share must be stated as a fixed amount, a percentage or a fraction of the annuity, or by a formula whose value is readily apparent from the face of the order and information in files. The amount cannot exceed the amount payable to the retiree after deductions for taxes and insurance.
2. Payments to a former spouse from a retiree’s annuity end with the retiree’s death.
For the former spouse to receive payments after the retiree’s death, the retiree must elect, or the court order must provide for, a survivor annuity.
3. A court order may provide that all or part of a refund of employee retirement contributions be paid to the former spouse.
4. A court order may also block payment of a refund
This will only occur if the order directs OPM not to pay the refund and the order also grants a survivor annuity or a portion of a retiree annuity to a legally separated or former spouse.
FAQs About OPM Rules for Sharing Pension After a Divorce
Do the same OPM rules apply regarding private sector pensions?
No. Private sector employees and employees of federal employees are not governed by the same agencies following a court order. Private sector employees are governed by the Employee Retirement Income Security Act (ERISA). In contrast, federal employees are governed by either the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS).
How does one claim benefits following a court order?
1. File the certified copy of the court order and all other necessary materials. A former spouse must apply in writing to be eligible to receive these benefits. If the spouse cannot apply due to medical or personal reasons, a representative may apply on their behalf. No special form is required. Included with this letter must be a certification letter from the former spouse or representative that states that the court order involved has not been suspended, amended, or set aside.
2. Inform the OPM of the addresses of both parties (the retiree and the former spouse)
3. Inform the OPM of any changes in circumstances that could affect the eligibility for particular benefits
4. Submit all disputes with the retiree to the State court for a resolution.
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