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Benefits of Surviving Spouses

Quick Facts

Former spouses may need to be notified, even if the former spouse may not be awarded a benefit.
Multiple spouses entitled to benefits will reduce the amount of benefits paid to each spouse..

Award of Benefit

If a current or former employee's marriage is dissolved, the court may order the employee, the employee's pension plan, or both, to pay amounts as part of the division of pension rights or as an award of spousal maintenance as a percentage of periodic or other payments, or as a fixed dollar amount. The court may award a former spouse all or part of a survivor benefit unless the plan does not allow by law the payment of a surviving spouse benefit to a former spouse.

Payment of Funds by Retirement Plan

If the court orders determines that a spouse has an interest in a pension plan, the court may order the pension plan to withhold payment of a refund on termination of employment or lump sum distribution to the extent of the spouse's interest in the plan, or to provide survivor benefits ordered by the court.

The court may not order the pension plan to do any of the following:

pay more than the equivalent of one surviving spouse benefit, regardless of the number of spouses or former spouses who may be sharing in a portion of the total benefit;
pay surviving spouse benefits when the plan member does not have a right to elect surviving spouse benefits;
pay surviving spouse benefits to a former spouse if the former spouse would not be eligible for benefits under the terms of the plan; or
order survivor benefits which, when combined with the annuity or benefit payable to the pension plan member, exceed the value of the normal retirement annuity.

If more than one spouse or former spouse is entitled to a surviving spouse benefit, the pension plan will pay each spouse a portion of the benefit proportionally based on the number of years the spouse was married to the plan member and the total number of years the plan member was married to all spouses whom are entitled to the benefit.

Notice to Former Spouse

A pension plan must notify a former spouse of an application by the employee for a refund of pension benefits if the former spouse has filed the following documents and information with the pension plan:

a copy of the court order, including a withholding order, determining the former spouse's rights;
the name and last known address of the employee; and
the name and address of the former spouse.

A pension plan must comply with an order, including a withholding order, if the order states the name, last known address of the payees, and name and address of the former spouse, or if the names and addresses are provided to the pension plan with service of the order.