| Home >> QDROs >> Governmental Plan & Military Plans |
|
Government & Military Plans
|
|
While QDROs are earmarked for the private sector ERISA plans, a Court Order Acceptable for Processing (COAP) targets Federal Employees Retirement System (FERS) plans, Civil Service Retirement System (CSRS) plans and Thrift Savings Plans (TSP). These plans have their own particular requirements and do not have a pre-approval process, nor will the Office of Personnel Management (OPM) recognize a QDRO or QDRO language to bifurcate their plans. It is imperative to effectively draft a COAP that is in compliance with the Office of Personnel Management and accounts for the any benefits offered by the plan to speed along this process.
Court Order’s that are drafted inadequately can cancel benefits, fail to allow for proper distribution options and not account for future contingencies that may occur such as; early retirement, Cost of Living Adjustments (COLAs), subsidized benefits, remarriage and premature death or disability. For instance, if a former nonmember spouse remarries prior to age 55, they will lose all survivor benefits from a federal plan unless an Insurable Interest Annuity has accounted for in the Court Order.
Divorce Financial Solutions charges a $500 flat fee for the first order and any additional order is discounted. Our COAP drafting services include:
-
Drafting the COAP within two business days in addition to providing copies to all parties.
-
We will discuss the COAP process with the divorcing parties and/or their counsel.
-
Any amended COAPs, if required by the Office of Personnel Management.
-
Along with the final COAP to be signed and filed with the court, we will include a letter of instruction for submission of the certified court copy to the Office of Personnel Management for action/implementation.
Military plans allow for the division of military retirement benefits through the enactment of the Uniformed Services Spouse’s Protection Act (USFSPA) in 1982. Military plans have thresholds which need to be reached before disposable retired pay may be divided for an ex-spouse. Even if these conditions are met, no more than 50% of the retired pay will be considered a marital asset and no more than a total of 65% may be awarded for alimony or any combination thereof.
For our military plans we also charge a flat fee for the first order and any additional order is discounted. This includes:
-
Drafting the court order dividing retired pay within a few business days and providing copies to all parties.
-
Discuss the process and answer any questions at any point with the divorcing parties and/or their counsel.
-
Amended military orders, if required by the Defense Finance and Accounting Service.
-
Along with the final court order to be signed and filed with the court, we will include letters of instruction for submission of the certified court copy to the Defense Finance and Accounting Service for action/implementation as well as DD Form 2293 with a letter of instruction for the nonmember former spouse
| Previous Page |
|
