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"" 101 Purpose of this Guide
"" 102 The Railroad Retirement Act
"" 103 Employee Retirement Income Security Act (ERISA)
"" 104 Funding of Railroad Retirement Annuities
"" 105 Railroad Retirement Annuity Components
"" 106 Statement or Estimate of Railroad Retirement Benefits
"" 107 Summary of RRB Requirements for Partition Order
"" 108 Railroad Retirement Disability Annuities are Subject to Division
"" 109 RRB Action on Receipt of Decree or Court Order
"" 110 Garnishment for Support Enforcement
"" A: Frequently Asked Questions
B: Sample Award Language
"" C: Sample Court Order
"" D: Form G-177C (08-07) Divorced Spouse Annuity Requirements
"" E: Spouse/Former Spouse Agreement Form
RELATED LINKS
'' Legal Information
Attorney's Guide to the
Partition of Railroad Retirement Annuities
Appendix B - Sample Award Language
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As explained in Section 103, a partition award may be accomplished by including the appropriate language in the divorce decree itself. Provided below are three sample paragraphs containing award language consistent with the regulations of the RRB. The sample paragraph entitled "Formula Award" provides an equal division of property in proportion to the period of the marriage but may be revised to produce a different result. Important: Be certain to review the "Additional Considerations" following the sample paragraphs.

Formula Award

[SPOUSE'S NAME] is awarded, and the Railroad Retirement Board is directed to pay, an interest in the portion of [EMPLOYEE'S NAME] benefits under the Railroad Retirement Act (45 U.S.C. §§ 231-231v) which may be divided as provided by Section 14 of that Act (45 U.S.C. § 231m). [SPOUSE'S NAME] share shall be computed by multiplying the divisible portion of [EMPLOYEE'S NAME] monthly benefit by a fraction, the numerator of which is the number of months [EMPLOYEE'S NAME] worked for a railroad employer during the period of the marriage, [MONTH/YEAR] through [MONTH/YEAR], and the denominator of which shall be [EMPLOYEE'S NAME] total number of months employed by a railroad employer at retirement, and then dividing the product by two.

Percentage Award

[SPOUSE'S NAME] is awarded, and the Railroad Retirement Board is directed to pay, an interest in the portion of [EMPLOYEE'S NAME] benefits under the Railroad Retirement Act (45 U.S.C. §§ 231-231v) which may be divided as provided by section 14 of that Act (45 U.S.C. § 231m). [SPOUSE'S NAME] share shall be computed as an amount equal to [PERCENTAGE] of [EMPLOYEE'S NAME] monthly divisible benefits.

NOTE: Caution should be taken when using the "Percentage Award" language to be certain such award will produce the intended result. If the order provides for a percentage award but does not specify a particular point in time, the award will be based upon all railroad service throughout the employee's career, regardless of the period of the marriage; if the order does specify that the percentage is awarded as of a specific date, the award will be based on the employee's railroad service through the specified date, regardless of the period of the marriage AND the award will be converted to a fixed dollar award (see below).

Fixed Dollar Award

[SPOUSE'S NAME] is awarded, and the Railroad Retirement Board is directed to pay, an interest in the portion of [EMPLOYEE'S NAME] benefits under the Railroad Retirement Act (45 U.S.C. '' 231-231v) which may be divided as provided by section 14 of that Act (45 U.S.C. ' 231m). [SPOUSE'S NAME] share shall be computed as an amount equal to [DOLLAR AMOUNT] of [EMPLOYEE'S NAME] monthly divisible benefits.

Additional Considerations

  • Divisible Components — The RRB will apply a valid award to the sum of all of the divisible components which make up the employee's monthly annuity, unless the court order specifies otherwise. The preceding sample paragraphs would result in dividing the sum of the employee's divisible components. If the parties wish to restrict the award to only one divisible component, the phrase "divisible" in the preceding sample paragraphs, should be replaced with the component which the parties wish to divide.
     
  • Disability Annuity — Unless the order expressly exempts a disability annuity from partition, the RRB will apply an award to either a retirement or disability annuity under the RRA. The parties may avoid partition of a disability annuity by a statement such as, "The parties expressly agree that this paragraph shall not apply to any disability annuity paid by the RRB." The RRB will then partition the employee's disability annuity only upon its conversion to an age and service annuity at full retirement age. (See Section 108.02).
     
  • Cost-of-living Adjustments — Under the "Formula Award" sample language noted above, a pro-rata share of any cost-of-living increase in the employee's divisible benefits would also accrue to the spouse or former spouse through the month prior to the month of the employee's death. Under the "Percentage Award" sample language noted above, a share of any cost-of-living increase in the employee's divisible benefits would also accrue to the spouse or former spouse through the month prior to the employee.s death, because the amount awarded is not awarded as of a particular point in time. However, if the order provides that a percentage is awarded as of a particular point in time, the award is converted to a fixed dollar award. Cost-of-living increases do not accrue to the spouse or former spouse where the award is a fixed dollar award.

If language such as that shown above is not included in the court decree, a separate order will be needed to achieve a partition of the divisible portion of the employee's annuity. A sample court order is set forth in Appendix C.


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Date posted: 12/28/2007
Date updated: 12/28/2007