The Foreign Service Journal, September 2005

8 AFSA NEWS • SEPTEMBER 2005 Retiree Issues BY BONNIE BROWN, RETIREE COORDINATOR Q: Are former spouses of Foreign Service employees and retirees entitled to pension and survivor benefits? A: A former spouse, whowasmarried to a Foreign Service employee during at least 10 years of his or her cred- itable federal service (five while amember of the Foreign Service), is automatically entitled to both pension and survivor benefits, unless those benefits are waived. A former spouse is entitled to these benefits if he/she was divorced after Feb. 15, 1981, and there is no court order or notarized spousal agreement that provides otherwise. A former spouse annuity ends if he/she remarries before becoming 55 years of age. The pension benefit is a pro-rata share of up to 50 percent of the Foreign Service pension, and the survivor benefit is a pro- rata share of the regular survivor annuity. This amounts to 55 percent of the annuity under the old retirement system (FSRDS) and 50 percent under the new (FSPS). Q: How is a pro-rata share calculated? A: A pro-rata share reflects the percentage of time the for- mer spouse was married to the employee during his or her years of creditable service. For example, if married during the entire period, the former spouse is entitled to50percent of the pen- sion. Ifmarried for half of the years of creditable service, the spouse is entitled to 25 percent of the pension. Q: Can a court order or separation agreement alter these entitlements? A: The departmentmust complywith the provisions relat- ing to retirement benefits in a valid state court order or court-approvedproperty settlement. Theproperty settlement agree- ment does not have to be a subject of the court order; it can qual- ify as a spousal agreement if notarized. Court orders and proper- ty settlements candivide an annuity or a refund of retirement con- tributions, provide a survivor annuity payable upon the death of an employee or retiree, permit a former spouse to continue cover- age under the FEHBPprogramand require an employee or retiree to assignhis or her FEGLI coverage to a former spouse or children. Q: What is the effect of court-ordered benefits for a former spouse on the survivor benefits of a current spouse? A: Themaximumpossible combined total of all current and former spouse survivor annuities is 55 percent of an FSRDS annuity and 50 percent of an FSPS annuity. As a result, a court order awarding a survivor annuity to a former spouse may reduce the amount that can be paid to the spouse married to the annuitant at the time of death. Q: What is the effect of the death of a spouse or former spouse entitled to a survivor annuity? A: If there isno surviving spouse, thedepartmentwill restore the retiree’s annuity to its full amount. In the event there is a surviving spouse eligible for a survivor annuity, there is noadjust- ment. Q: Are former spouses entitled to health coverage? A: A former spouse’s federal health benefits as a family member end on the day of divorce. A former spouse may apply for spouse-equity FEHB health-plan enrollment with- in 60 days, if he or she was covered as a family member prior to the divorce, has a current or future entitlement to an FSRDS or FSPS pension or survivor benefit, has not remarried prior to turning 55 and was divorced on or after May 7, 1985. A for- mer spouse who is not eligible for this enrollment may still be eligible for temporary continuation of health benefits coverage for 36 months. Q: What information should a former spouse submit to the State Department Retirement Office in support of an appli- cation for former spouse benefits? A: A former spouse should submit a certified copy of the court order; a statement that the court order has not been modified, supersededor set aside; and thename, date of birth, Social Securitynumber, address andchange inmarital status of the employ- ee or retiree and former spouse. Since there are specific time lim- itations for qualifying for certain benefits, it is important to submit thedivorcenotificationpromptly. Similarly, a former spouse should be aware that there are time restrictionswith respect to filing spousal agreements that affect FSRDS pension and survivor benefits. More detailed information on this subject can be found at www.state.gov/documents/organization/16038.pdf. r Q & A AFSA NEWS BRIEFS Briefs • Continued from page 7 Visit the BOOKFAIR The 45th annual BOOKFAIR, sponsored by the Associates of the American Foreign Service Worldwide, opens on Friday, Oct. 14, at 2 p.m. BOOKFAIR is held in the Exhibit Hall of Main State. Employees, their escorted guests, retirees and their spouses are cordially invited. During the week, from Oct. 17 through Oct. 21, BOOKFAIR is open from 11 a.m. to 3 p.m. BOOKFAIR is open to the general public on two weekends: Oct. 15-16 and Oct. 22-23, from 10 a.m. to 4 p.m. On the final day, some items will be half-price. VISA, MasterCard and checks will be accepted. Please call (202) 223-5796 with questions. Your attendance at BOOKFAIR helps support AAFSW pro- grams to benefit the Foreign Service community, so please come on over and shop!