Unlike most retirement plans which are covered under The Employee Retirement Income Security Act of 1974 (ERISA), federal retirement plans are not. This is because there are different levels of plans in which a federal employee may be participating.
Unlike ERISA plans, federal retirement plan benefits are only accessible to a former spouse upon the retirement of the plan beneficiary. This means there are special requirements which are typically fulfilled using a Court Order Acceptable for Processing (COAP).
Federal retirement plans have unique requirements for documentation, and require an in-depth analysis of the plan, the deposits which are being made to the plan, and the date on which the owner of the account intends to retire. In some cases, it may be necessary to request a life insurance policy be put in place to protect your client’s interests.
The QDRO Company, LLC can help you draft the appropriate language to divide a federal retirement plan to ensure the various components are accurately considered.