5 C.F.R. Subpart B—Procedures for Processing Court Orders Affecting Employee Annuities
Title 5 - Administrative Personnel
(a) This subpart regulates the procedures that the Office of Personnel Management will follow upon the receipt of claims arising out of State court orders directed at employee annuities under CSRS or FERS. OPM must comply with qualifying court orders, decrees, or court-approved property settlements in connection with divorces, annulments of marriages, or legal separations of employees or retirees that award a portion of an employee annuity to a former spouse. (b) This subpart prescribes— (1) The circumstances that must occur before employee annuities are available to satisfy a court order acceptable for processing; and (2) The procedures that a former spouse must follow when applying for a portion of an employee annuity based on a court order under section 8345(j) or section 8467 of title 5, United States Code. (c)(1) Subpart C of this part contains the rules that a court order must satisfy to be a court order acceptable for processing to affect an employee annuity. (2) Subpart F of this part contains definitions that OPM uses to determine the effect on employee annuity of a court order acceptable for processing.
Title 5: Administrative Personnel
PART 838—COURT ORDERS AFFECTING RETIREMENT BENEFITS
Subpart B—Procedures for Processing Court Orders Affecting Employee Annuities
Regulatory Structure
§ 838.201 Purpose and scope.
Availability of Funds
§ 838.211 Amounts subject to court orders.
(a)(1) Employee annuities are subject to court orders acceptable for processing only if all of the conditions necessary for payment of the employee annuity to the former employee have been met, including, but not limited to—
(i) Separation from a position in the Federal service covered by CSRS or FERS under subpart B of part 831 of this chapter or subpart A of part 842 of this chapter, respectively;
(ii) Application for payment of the employee annuity by the former employee; and
(iii) The former employee's immediate entitlement to an employee annuity.
(2) Money held by an employing agency or OPM that may be payable at some future date is not available for payment under court orders directed at employee annuities.
(3) OPM cannot pay a former spouse a portion of an employee annuity before the employee annuity begins to accrue.
(b) Payment to a former spouse under a court order may not exceed the net annuity.
(c) Waivers of employee annuity payments under the terms of section 8345(d) or section 8465(a) of title 5, United States Code, exclude the waived portion of the annuity from availability for payment under a court order if such waivers are postmarked or received before the date that OPM receives a court order acceptable for processing.
Application and Processing Procedures
§ 838.221 Application requirements.
(a) A former spouse (personally or through a representative) must apply in writing to be eligible for a court-awarded portion of an employee annuity. No special form is required.
(b) The application letter must be accompanied by—
(1) A certified copy of the court order acceptable for processing that is directed at employee annuity;
(2) A certification from the former spouse or the former spouse's representative that the court order is currently in force and has not been amended, superseded, or set aside;
(3) Information sufficient for OPM to identify the employee or retiree, such as his or her full name, CSRS or FERS claim number, date of birth, and social security number;
(4) The current mailing address of the former spouse; and
(5) If the employee has not retired under CSRS or FERS or died, the mailing address of the employee.
(c)(1) When court-ordered payments are subject to termination (under the terms of the court order) if the former spouse remarries, no payment will be made until the former spouse submits to OPM a statement in the form prescribed by OPM certifying—
(i) That a remarriage has not occurred;
(ii) That the former spouse will notify OPM within 15 calendar days of the occurrence of any remarriage; and
(iii) That the former spouse will be personally liable for any overpayment to him or her resulting from a remarriage.
(2) OPM may subsequently require periodic recertification of the statements required under paragraph (c)(1) of this section.
§ 838.222 OPM action on receipt of a court order acceptable for processing.
(a) If OPM receives a court order acceptable for processing that is directed at an employee annuity that is in pay status, OPM will inform—
(1) The former spouse—
(i) That the court order is acceptable for processing;
(ii) Of the date on which OPM received the court order, the date on which the former spouse's benefit begins to accrue, and if known, the date on which OPM commences payment under the order;
(iii) Of the amount of the former spouse's monthly benefit and the formula OPM used to compute the monthly benefit; and
(iv) That, if he or she disagrees with the amount of the monthly benefits, he or she must obtain, and submit to OPM, an amended court order clarifying the amount; and
(2) The retiree—
(i) That the former spouse has applied for benefits under this subpart;
(ii) That the court order is acceptable for processing and that OPM must comply with the court order;
(iii) Of the date on which OPM received the court order, the date on which the former spouse's benefit begins or accrue, and if known, the date on which OPM commences payment under the court order;
(iv) Of the amount of the former spouse's monthly benefit and the formula OPM used to compute the monthly benefit;
(v) That, if he or she contests the validity of the court order, he or she must obtain, and submit to OPM, a court order invalidating the court order submitted by the former spouse; and
(vi) That, if he or she disagrees with the amount of the former spouse's monthly benefits, he or she must obtain, and submit to OPM, an amended court order clarifying the amount.
(b) If OPM receives a court order acceptable for processing that is directed at an employee annuity but the employee has died, or if a retiree dies after payments from an employee to a former spouse have begun, OPM will inform the former spouse that the employee or retiree has died and that OPM can only honor court orders dividing employee annuities during the lifetime of the retiree.
(c) If OPM receives a court order acceptable for processing that is directed at an employee annuity that is not in pay status, OPM will inform—
(1) The former spouse—
(i) That the court order is acceptable for processing;
(ii) That benefits cannot begin to accrue until the employee retires;
(iii) To the extent possible, the formula that OPM will use to compute the former spouse's monthly benefit; and
(iv) That, if he or she disagrees with the formula, he or she must obtain, and submit to OPM, an amended court order clarifying the amount; and
(2) The employee, separated employee, or retiree—
(i) That the former spouse has applied for benefits under this subpart;
(ii) That the court order is acceptable for processing and that OPM must comply with the court order;
(iii) To the extent possible, the formula that OPM will use to compute the former spouse's monthly benefit;
(iv) That, if he or she contests the validity of the court order, he or she must obtain, and submit to OPM, a court order invalidating the court order submitted by the former spouse; and
(v) That, if he or she disagrees with the amount of the former spouse's monthly benefits, he or she must obtain, and submit to OPM, an amended court order clarifying the amount.
(d) The failure of OPM to provide, or of the employee, separated employee, or retiree or the former spouse to receive, the information specified in this section prior to the commencing date of a reduction or accrual does not affect—
(1) The validity of payment under the court order; or
(2) The commencing date of the reduction in the employee annuity or the commencing date of the accrual of former spouse benefits as determined under §838.231.
§ 838.223 OPM action on receipt of a court order not acceptable for processing.
If OPM receives an application from a former spouse not based on a court order acceptable for processing, OPM will inform the former spouse that OPM cannot approve the application and provide the specific reason(s) for disapproving the application. Examples of reasons for disapproving an application include that the court order does not meet the definition of court order in §838.103 or does not meet one or more of the requirements of subpart C of this part.
§ 838.224 Contesting the validity of court orders.
(a) An employee, separated employee, or retiree who alleges that a court order is invalid must prove the invalidity of the court order by submitting a court order that—
(1) Declares the court order submitted by the former spouse is invalid; or
(2) Sets aside the court order submitted by the former spouse.
(b) OPM must honor a court order acceptable for processing that appears to be valid and that the former spouse has certified is currently in force and has not been amended, superseded, or set aside, until OPM receives a court order described in paragraph (a) of this section or a court order amending or superseding the court order submitted by the former spouse.
§ 838.225 Processing amended court orders.
(a) If the employee, separated employee, retiree, or former spouse submits an amended court order pertaining to payment of a portion of the employee annuity, OPM will process the amended court order prospectively only, effective against employee annuity accruing beginning the first day of the second month after OPM receives the amended court order.
(b) A court order is not effective to adjust payments prior to the first day of the second month after OPM receives the court order unless—
(1) The court order—
(i) Expressly directs OPM to adjust for payment made under the prior court order; and
(ii) Determines the total amount of the adjustment or the length of time over which OPM will make the adjustment; and
(iii) Provides a specific monthly amount of the adjustment or a formula to compute the amount of the monthly adjustment; and
(2) Annuity continues to be available from which to make the adjustment.
Payment Procedures
§ 838.231 Commencing date of payments.
(a) A court order acceptable for processing is effective against employee annuity accruing beginning the first day of the second month after OPM receives the court order.
(b)(1) OPM will not begin payments to the former spouse until OPM receives all the documentation required by §838.221 (b) and (c).
(2) If payments are delayed under paragraph (b)(1) of this section, after OPM receives all required documentation, it will authorize payment of the annuity that has accrued since the date determined under paragraph (a) of this section but the payment of which was delayed under paragraph (b)(1) of this section.
§ 838.232 Suspension of payments.
(a) Payments from employee annuities under this part will be discontinued whenever the employee annuity payments are suspended or terminated. If employee annuity payments to the retiree are restored, payments to the former spouse will also resume subject to the terms of any court order acceptable for processing in effect at that time.
(b) Paragraph (a) of this section will not be applied to permit a retiree to deprive a former spouse of payment by causing suspension of payment of employee annuity.
§ 838.233 Termination of payments.
A former spouse portion of an employee annuity stops accruing at the earliest of—
(a) The date on which the terms of the court order require termination;
(b)(1) The last day of the first month before OPM receives a court order invalidating, vacating, or setting aside the court order submitted by the former spouse if OPM receives the latest court order no later than 20 days before the end of the month; or
(2) The last day of the month in which OPM receives a court order invalidating, vacating, or setting aside the court order submitted by the former spouse if OPM receives the latest court order than 20 days before the end of the month; or
(c) The last day of the first month after OPM receives an amended court order;
(d) The last day of the first month before the death of the retiree; or
(e) Except as provided in §838.237, the date on which the former spouse dies.
§ 838.234 Collection of arrearages.
Specific instructions are required before OPM may pay any arrearage. Except as provided in §838.225(b), OPM will not increase a former spouse's share of employee annuity to satisfy an arrearage due the former spouse. However, under §838.225, OPM will prospectively honor the terms of an amended court order that either increases or decreases the court order's entitlement.
§ 838.235 Payment of lump-sum awards.
If a court order acceptable for processing awards a former spouse a lump-sum amount from the employee annuity and does not state the monthly rate at which OPM should pay the lump-sum, OPM will pay the former spouse equal monthly installments at 50 percent of the gross annuity (subject to the limitations under §838.211) at the time of retirement or the date of the order, whichever comes later, until the lump-sum amount is paid.
§ 838.236 Court orders barring payment of annuities.
(a) State courts lack authority to prevent OPM from paying employee annuities as required by section 8345(a) or section 8463 of title 5, United States Code. OPM will not honor court orders directing that OPM delay or otherwise not pay employee annuities at the time or in the amount required by statute.
(b) Except as otherwise provided in this subpart, OPM will honor court orders acceptable for processing that direct OPM to pay the employee annuity to the court, an officer of the court acting as a fiduciary, or a State or local government agency during the pendency of a divorce or legal separation proceeding.
§ 838.237 Death of the former spouse.
(a) Unless the court order acceptable for processing expressly provides otherwise, the former spouse's share of an employee annuity terminates on the last day of the month before the death of the former spouse, and the former spouse's share of employee annuity reverts to the retiree.
(b) Except as otherwise provided in this subpart, OPM will honor a court order acceptable for processing or an amended court order acceptable for processing that directs OPM to pay, after the death of the former spouse, the former spouse's share of the employee annuity to—
(1) The court;
(2) An officer of the court acting as fiduciary;
(3) The estate of the former spouse; or
(4) One or more of the retiree's children as defined in section 8342(c) or section 8424(d) of title 5, United States Code.
[57 FR 33574, July 29, 1992, as amended at 58 FR 43493, Aug. 17, 1993]
Procedures for Computing the Amount Payable
§ 838.241 Cost-of-living adjustments.
Unless otherwise provided in the court order, when the terms of the court order or §838.621 provide for cost-of-living adjustments on the former spouse's payment from employee annuity, the cost-of-living adjustment will be effected at the same time and at the same percentage rate as the cost-of-living adjustment in the employee annuity.
§ 838.242 Computing lengths of service.
(a)(1) The smallest unit of time that OPM will calculate in computing a formula in a court order is a month, even where the court order directs OPM to make a more precise calculation.
(2) If the court order states a formula using a specified simple or decimal fraction other than twelfth parts of a year, OPM will use the specified number to perform simple mathematical computations.
(b) Unused sick leave is counted as “creditable service” on the date of separation for an immediate CSRS annuity; it is not apportioned over the time when earned. Unused sick leave is not countable as “creditable service” in a FERS annuity (except in a CSRS component for an employee who transferred to FERS) or in a deferred CSRS annuity.
§ 838.243 Minimum amount of awards.
OPM will treat any court order that awards a former spouse a portion of an employee annuity equal to less than $12 per year as awarding the former spouse $1 per month.
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