PENSION BENEFITS REPORT
PETER ANDREYEV
Divorce and your pension : Not so perfect together
One of the many questions I get is in regard to our pension and divorce . I have been getting so many questions about this topic , I decided to let you know some quick facts regarding divorce and your pension .
The good news is that our pensions are usually exempt from any liens , but the bad news is that the Division of Pensions will honor court orders for child support , alimony or equitable distribution because of court decisions and opinions given by the New Jersey Attorney General . That means the retirement systems have allowed the implementation of matrimonial / civil union dissolution court orders granting alimony , support or equitable distribution against a member ’ s monthly retirement allowance . Just so you know , it is your responsibility to provide the Division of Pensions with copies of all court orders as well , so as to comply with the provisions of the court orders . Now I know what you ’ re thinking : If I don ’ t send it , how will they know ? I am sure your ex-spouse ’ s lawyer will gladly send the Division of Pensions the court order when they know that their client is entitled to a sum of money .
When you are filing for divorce or a dissolution proceeding , that would be a good time for you to re-assess your beneficiary designation . It may be a good idea to think about who you want to be listed as your beneficiary before , during and after the completion of the
divorce proceedings because there is a statute in New Jersey that basically says that even if you designate or the beneficiary information indicates your former spouse or relatives of your ex-spouse as beneficiaries , they cannot receive the benefit ( N . J . S . A 3B : 3.14 ). The pension and / or life insurance proceeds become payable to your remaining primary beneficiaries , contingent beneficiaries or your estate . As always , there a few exceptions . One of which is if there is a court order that specifically designates your ex-spouse to receive a pension and / or the life insurance benefit , or you sign and file a designation of beneficiary for after the final date of judgement that names your ex-spouse or former relatives of your ex-spouse as pension and or life insurance beneficiary .
When you have reached retirement , matrimonial orders regarding your retirement will take effect once you begin receiving your monthly retirement allowance . The court order can designate a specific dollar amount , percentage or a percentage based on the number of years of pensionable service you have accrued during your marriage to be withheld from your retirement allowance . The amount of money will be sent directly from the Division of Pensions to your former spouse . Any court-ordered payment to your former spouse will stop when you die or when your former spouse dies . So let ’ s hope for your sake that you outlive your former spouse in retirement .
If you have a question regarding this topic or any pension-related topic , you can reach me at the NJSPBA office by phone or email . d
14 NEW JERSEY COPS ■ MAY 2018