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DIRECTIONS FOR COMPLETING THE FORM Sections 1 and 2 This information can be found in the caption (top part of the first page) of the Property Settlement Agreement or Divorce Decree. Section 3 Participant (Employee Spouse) This is the Member of the CSRS or FERS Plan. Section 4 Alternate Payee (Spouse or Former Spouse) This is the individual who is being awarded a portion of the CSRS or FERS Benefit. Section 5 Date of Marriage Section 6 Divorce Date - This is the date the divorce was effective. If the divorce has not been finalized, leave this section blank. Section 7 Date Marriage Ended - This is the cut-off date for marital property rights relative to the pension. It is usually dictated by case law. This information may be found in the Property (Marital) Settlement Agreement or Divorce Decree. Section 8 Plan Name - The name of the plan is either the Civil Service Retirement System or the Federal Employees Retirement System. Date Participant Joined the Plan - This is the date the Participant began participation in the CSRS or FERS. The Participant either is retired or will retire in the future. Section 9 Percent or Dollar Amount of Employee's benefits to be paid by the Plan to the Former Spouse. It is possible to award a percentage of the Employee's benefits (i.e. 50% of the portion of the benefit accumulated during the marriage) or a specific dollar amount each month (i.e. $750.00 per month) or, a total gross award (i.e. $50,000.00 payable in monthly installments when the Employee retires until the entire amount has been paid. When the entire gross amount has been paid, payments to the Former Spouse will cease.) If a total gross award is designated and the Employee dies prior to the Former Spouse receiving the entire amount no further benefit will be paid and the Former Spouse will not receive the entire gross amount awarded. The election of a survivor benefit is in no way related to the gross amount award (i.e. if a survivor benefit is elected, it will be paid to the Former Spouse for his/her entire life regardless of whether the gross amount originally awarded was received.) This information can be found in the Property (Marital) Settlement Agreement of Divorce Decree. If a percent is chosen, how will the Marital Property Component be determined: There are two methods of distinguishing the portion of pension benefits earned by an employee during the period of marriage. The method which applies to a particular case is typically discussed in detail in the Judgment of Divorce, Property Settlement Agreement or other document which outlines the division of property. However, if such is not discussed in detail, various case law may set the standard followed by divorcing parties in different states. Option #1 - Frozen Benefit Approach: The Plan determines the employee's accrued benefit assuming that the employee terminated his employment on the Date the Marriage Ended. This benefit is referred to as the "frozen" accrued benefit. If the employee began his employment prior to the date of marriage, the Plan will calculate what part of the "frozen" accrued benefit was accumulated during the period of marriage. Option #2 - Coverture Approach: This approach compares the period of marriage to the total period of time an employee participates in his/her pension plan up until the date of retirement. This method is best explained using the following illustration: Jack and Jill were married for 10 years. Jack began his employment at the same time they got married, and worked for another 20 years after the marriage ended before retiring. Therefore, when he retired, he had been in the retirement plan for a total of 30 years. The formula for determining the portion of the pension accumulated during the marriage would be as follows:
Taking this a step further, if Jack and Jill were supposed to divide the portion of the benefits earned during their marriage equally, the formula would be as follows:
or, Jill's share equals 16.67% of the Jack's entire pension after 30 years of employment. If a percent is chosen, will payments be deducted from the Employee's Option #1 - Gross Monthly Annuity (or) Option #2 - Net Monthly Annuity Most parties divide the gross monthly annuity. This is the choice that must be made if the Employee has not retired as of the date of the Order. The net annuity is rarely the choice made by divorcing parties. This may only be used if the Participant has retired as of the date of the Order. Section 10 Should the Former Spouse receive a prorata share of any Cost-of-Living Adjustment? Cost-of-living adjustments are small incremental increases which keep a retiree in line with inflation. They are typically given every year and dictated by the government. These are increases in retirement benefits after retirement, and should not be confused with cost-of-living increases in salary received while still working. In some states case law has established that if a spouse is awarded a portion of the employee's pension, and that pension is subject to cost-of-living increases, then the spouse is also awarded a portion of such cost-of-living increases. However, in many cases this issue is not dictated by case law and should be decided by the parties during their settlement. Section 11 After benefits commence, if the Former Spouse predeceases the Employee the Former Spouse's share shall: Option #1 - Be immediately and fully restored to the Employee - This means that if the Former Spouse dies before receiving benefits from CSRS or FERS, the benefits the Former Spouse would have received will revert to the Employee. Option #2 - Be paid to the surviving children of the marriage - This means that if the Former Spouse dies before receiving benefits from CSRS or FERS, the benefits the Former Spouse would have received will be paid to the surviving children of the marriage in equal shares. Option #3 - Be paid to the estate of the Former Spouse - This means that if the Former Spouse dies before receiving benefits from CSRS or FERS, the benefits the Former Spouse would have received will be paid to the Former Spouse's estate. When will Former Spouse's benefits start? Benefits will be paid to the Former Spouse when the Employee actually retires and begins receiving benefits from CSRS or FERS. Length of time benefits will be paid by the Plan to the Former Spouse. The Former Spouse will receive his/her equitable distribution share of the pension for the lifetime of the Participant. Therefore, upon the Participant's death, all payments to the Former Spouse of the pension will stop. Section 12 If the Employee leaves Federal Service before retirement and applies for a refund of employee contributions the Office of Personnel Management shall Option #1 - Be directed not to refund contributions. This means that the Employee would not be entitled to make a withdrawal of contributions. By barring this withdrawal, the pension will remain intact with CSRS or FERS. Option #2 - Be directed to refund contributions with Former Spouse being entitled to a prorata share. This means that if a refund was requested by the Employee, the Former Spouse would receive a lump sum distribution of his/her interest in the Employee contributions instead of his/her share of the monthly pension benefits. It should be noted that the lump sum payment of the contributions paid to the Former Spouse would most likely be substantially less than the overall amount received by the Former Spouse on a monthly basis. Section 13 Should the Former Spouse be entitled to a Former Spouse Survivor Annuity? A Former Spouse Survivor Annuity is payable upon the death of the Employee to the designated Former Spouse. Establishing the Former Spouse's entitlement to a Former Spouse Survivor Annuity is necessary if it is the intention of the parties that the Former Spouse receive benefits for life. If a Former Spouse Survivor Annuity is not elected, payment of benefits to the Former Spouse will stop upon the death of the Employee. It should be noted that the Former Spouse will forfeit his/her rights to this Former Spouse Survivor Annuity if he/she remarries prior to reaching age 55. There are a number of different choices relative to the Former Spouse Survivor Annuities offered under the Plans. Option #1 - No. The Former Spouse would not be entitled to a Former Spouse Survivor Annuity. Option #2 - Be awarded the maximum possible annuity. This would provide the Former Spouse with a Former Spouse Survivor Annuity equal to 55% under CSRS and 50% under FERS of the Employee's gross monthly retirement benefit being paid at the time of his/her death. Option #3 - Be awarded the same amount to which the Former Spouse would have been entitled if the divorce had not occurred. This would provide the Former Spouse with the same Former Spouse Survivor Annuity that the Employee had designated with OPM at the time of the divorce. If this option is elected and the Employee did not establish the Former Spouse's entitlement with OPM, then the Former Spouse will receive the maximum possible survivor annuity as described in option #2 above. Option #4 - Be awarded___________% of the maximum survivor annuity. This would provide the Former Spouse with a percentage of the maximum survivor annuity. Option #5 - Be awarded___________% of the employee annuity. This would provide the Former Spouse with a percentage of the Former Spouse Survivor Annuity. (Such percentage would be 55% or less). Option #6 - Be awarded a prorata share. This would provide the Former Spouse with 50% of the Former Spouse Survivor Annuity attributable to the period of marriage. It is calculated using a formula which compares the period of marriage to the total period of employment as of the date of the Employee's death. Option #7 - Be awarded the maximum possible survivor annuity unless the Employee remarries before retirement. If the Employee remarries before retirement the Former Spouse shall receive an amount equal to a prorata share. This would provide the Former Spouse with the maximum as described in Option #2 above, unless the Employee remarries before retirement, in which case the Former Spouse would be entitled to the benefit described in Option #6 above. Option #8 - Be awarded the maximum possible survivor annuity unless the Employee remarries after retirement. If the Employee remarries after retirement the Former Spouse shall receive an amount equal to a prorata share. This would provide the Former Spouse with the maximum as described in Option #2 above, unless the Employee remarries after retirement, in which case the Former Spouse would be entitled to the benefit described in Option #6 above. Section 14 There is always a cost associated with providing a Former Spouse Survivor Annuity. If the Former Spouse is entitled to a Former Spouse Survivor Annuity, the cost of the survivor annuity shall be paid from Option #1 - The Employee Annuity. This means that the full amount of the cost for providing this survivor annuity would be deducted from the Employee's share of the benefits. Option #2 - The Former Spouse's share of the Employee's annuity. This means that the full amount of the cost for providing this survivor annuity would be deducted from the Former Spouse's share of the benefits. Option #3 - Equally from both parties. This means that the cost will be deducted equally from both the Former Spouse and Employee's benefits. (Most of the time such cost is deducted on a 50/50 basis. If it is the intention to deduct this cost on a different basis, such as 60/40 or 70/30, it is possible and should be described in detail). 
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