How Divorce Can Affect Your WRS Account
If a marriage is legally terminated, the court can award up to 50% of a participant's
WRS account to an "alternate payee" (the former spouse). The court order that
awards a portion of the account to the alternate payee is called a
"Qualified Domestic Relations Order" (QDRO). A WRS
account can be divided if the marriage legally terminated after January 1, 1982.
A QDRO must award a percentage of a participant's annuity or account
to an alternate payee; it cannot award a specific dollar amount.
The percentage applies to all parts of the participant's annuity
or account, including employee and employer contributions, additional
contributions, and creditable service (including military service).
Once the annuity or account is divided the participant has no further
rights to the portion awarded to the alternate payee's, and the
participant's future benefits are reduced by the value of the annuity
or account awarded to the alternate payee.
If the participant is already receiving an annuity when the marriage
is terminated the annuity is divided, and a separate annuity is
then paid to the alternate payee. If the participant is not an annuitant
the account is divided and a separate account is created for the
alternate payee, who can then apply for a benefit at any time. However,
until the participant reaches minimum retirement age and/or is
vested,
the alternate payee is only eligible for a
separation benefit. Once
the participant reaches
minimum retirement age and is vested, the
alternate payee is eligible to apply for a
retirement benefit based
on both employee and employer contributions.
For more detailed information review these Department resources:
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