How Will Former Spouse’s share of Benefits be determined
The Time Rule calculates the community property portion of the benefit by comparing length of participant’s service during the marriage to length of participant’s total service with employer as of Date of Benefit Payment. That comparison yields a fraction which is multiplied by the benefit to yield the community share, of which the Former Spouse would normally receive Fifty
Instead of Date of Benefit Payment, Date of Separation, Date of Dissolution, Date of Retirement or any other agreed upon date may be used.
Husband and Wife may agree to a fixed percentage of the benefit that should go to the Former Spouse.
Fixed Dollar Amount
Husband and Wife may agree to a fixed dollar amount of the benefit assigned to the Former Spouse.
What form of benefit should the percentage be applied against
A Self-only Annuity means the amount of monthly recurring payment to a retiree who has elected not to provide a survivor annuity to anyone. Unless the court order provides otherwise, it may include certain lump sum payments
Gross Annuity means the amount of monthly annuity payable after reducing the self-only annuity to provide survivor annuity benefits but before any
other deduction. It also includes certain lump sum payments.
Net Annuity means the amount of monthly annuity payable after deducting from the gross annuity any amounts
- Owed by the retiree to the United States
- Deducted for health benefit premiums
- Deducted for life insurance premiums
- Deducted for Medicare premiums
- Certain property withheld for Federal Income tax purposes
- Certain property withheld for State income tax purposes. It also includes certain lump sum payments.
Does Former Spouse share in Future Salary Adjustments
Salary adjustments in this context are periodic increases pursuant to a particular index which adjusts pay for all employees or a particular group of employees similar to Cost of Living Increases. Unless the Order specifically orders otherwise, the Former Spouse’s share will be adjusted for salary adjustments.
Is Former Spouse to participate in any cost of living adjustments? (COLA)
Under the Federal plans, the Plan will from time to time after the parties begin receiving benefits, increase the monthly benefit to adjust for inflation. Unless the Order specifically orders otherwise, the Former Spouse’s share will be adjusted for COLAs.