Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum

Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum

Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum

While the New Jersey State-administered retirement systems are exempt from the Employee Retirement Income Security Act of 1974 (ERISA), the Division of Pensions and Benefits will attempt to follow the provisions of ERISA, as related to the Retirement Equity Act of 1985 (REACT) provided such mandates do not violate applicable New Jersey laws or administrative rules. Although your pension is normally exempt from any liens, the Division of Pensions and Benefits will honor court orders for child support, alimony, or equitable distribution in cases of divorce or dissolution of a civil union. 

A Domestic Relations Order is a court order, separate and apart from a Judgment of Divorce. A Domestic Relations Order provides for the equitable distribution of pension and related benefits upon the dissolution of a marriage or civil union. A Domestic Relations Order that has been reviewed and approved by the Division of Pensions and Benefits and signed by a judge is then deemed a Qualified Domestic Relations Order (QDRO). 

REQUIREMENTS FOR AN ACCEPTABLE QDRO 

The language within the acceptable Domestic Relations Order must clearly impose an obligation upon the Division to withhold a portion of a participant/member’s retirement benefits for payment to an alternate payee. 

The description of the participant and the alternate payee must be clear and specific, i.e. full names and addresses as opposed to references to “spouse” or “former spouse,” etc. 

The Domestic Relations Order must contain specific names, as previously mentioned, including: 

• Names, addresses, and Social Security numbers of both the member and the alternate payee: 

• The specific name of the retirement system in which the member is enrolled. State administered systems include:

 — Public Employees’ Retirement System of New Jersey

 — Teachers’ Pension and Annuity Fund of New Jersey

 — Police and Firemen’s Retirement System of New Jersey

 — State Police Retirement System of New Jersey

 — Judicial Retirement System of New Jersey

 — Alternate Benefit Program of New Jersey

 — Defined Contribution Retirement Program of New Jersey

 — New Jersey State Employees Deferred Compensation Plan

 — Supplemental Annuity Collective Trust of New Jersey

 The Domestic Relations Order must state a specific amount to be withheld for payment to the alternate payee. Acceptable examples include:

 • A specific dollar amount; or

 • A specific percentage of the member’s benefit; or

• An amount to be determined through the application of a coverture fraction. A coverture fraction calculation utilizes a specific percentage of the member’s gross monthly retirement allowance, multiplied by a coverture fraction where the numerator is the total number of years and months that the parties were married while the member was a participant in the retirement system and the denominator is the total number of years and months the member has participated in the retirement system. 

To insure proper tax reporting, the Domestic Relations Order must indicate whether the withholdings are for alimony, support, or equitable distribution payments. The form of payment will determine how the payments are reported for tax purposes.

Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum

Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum

Hello listmates,

Have a new client who was divorced in 1997. Husband was a participant in the Police and Fireman’s Retirement system as he was an officer in North Jersey.  Pursuant to the PSA, the husband was to “divide the pension by QDRO which shall provide for an actuarial equal share of the pension acquired during coverture commencing on the date of the marriage, November 7, 1988 and ending on the filing date of the divorce, September 25, 1995.”  

The language above is all that is provided. Not sure if present value should be applied based on the "actuarial share" requirement or should she only be entitled to what accrued during the marriage between 1988 and 1995.   Any thoughts would be greatly appreciated. 

Best,

Eric B. Hannum