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. |