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If your client's
ex-spouse is employed by the federal government, he/she is covered
under one of two federally administered defined benefit pension
plans. One is called the Civil Service Retirement System ("CSRS").
The other is called the Federal Employees Retirement System
("FERS"). They may also be covered under a special
type of defined contribution plan called the Thrift Savings
Plan ("TSP"). These federal government plans are exempt
from the traditional QDRO provisions of the law. Remember, QDROs
only apply to ERISA-governed pension plans (ie: plans sponsored
by a private employers). However, the Office of Personnel Management
("OPM"), located in Washington, D.C., administers
a special kind of court order to divide federal retirement benefits.
It's called a "Court Order Acceptable for Processing"
(occasionally referred to as a COAP). There
are basically three types of retirement benefits payable by
the OPM that can be divided in a COAP:
- Employee Annuity (a monthly pension benefit
payable upon retirement);
- Refund of Employee Contributions (payable
in the event of a termination of employment before retirement);
- Former Spouse Survivor Annuity (payable
to a former spouse under a COAP, upon the death of the participant).
The OPM administers
each type of retirement benefit independently. It is therefore
extremely important to address each one of these benefits
separately under a Court Order Acceptable for Processing.
QDRO Consultants Co. specializes in the drafting of COAPs
for family law attorneys across the U.S. Please give us a
call toll-free at (800) 527-8481, if you would like us to
assist you with your domestic relations practice.
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