Wednesday, February 6, 2013

Division of Military Retired Pay

Changes in benefits that a servicemember could receive upon qualifying for retirement from the military service, make a revisit of provisions for division of retired pay imperative.  The issue always arises in a dissolution proceedings.

This is a work in process, and not offered as legal advise or opinion.  If this is an issue affecting you, you need to retain legal counsel and relie upon your attorney's advise in this legal matter.

On my proposed draft, I WOULD APPRECIATE COMMENTS, CHANGES QUESTIONS, setting forth what should be put into or removed from this division of military pay.

My proposed draft:



STATE OF MINNESOTA                                                                DISTRICT COURT
COUNTY OF                                                                         JUDICIAL DISTRICT
                                                                                            FAMILY COURT DIVISION
------------------------------------------------------------       Court File No.
In Re the Marriage of:

,

                                    Petitioner,                        ORDER DIVIDING PETITIONER’S
                                                                                             MILITARY RETIRED PAY
And                                                                                         (Active Duty)
,

                                      Respondent.

-----------------------------------------------------------------

            This Order is issued pursuant to paragraph __ of the parties dissolution decree which was signed by the Honorable ____________ on _______________.  The Order is issued to divide the military retired pay of Petitioner,
*
SSN:  On the attached confidential information form.

and direct for the payment of a portion of such retired pay to
Respondent,
*
SSN:  On the attached confidential information form.

as more fully described herein. 
1.         The Petitioner's military retired pay constitutes marital property to the extent that it is based on active duty service performed between ______________ date of marriage at the same time of which Respondent was on active duty with the United States __________ and _________, 200_ (the date Respondent retired from active duty service or date of dissolution if still serving).
            The Respondent shall be entitled to receive as her share a percentage of the Petitioner's retired pay calculated by using the following formula:
                                                            1/2 x a / b x 100 = %
½ x 17/ 20 x 100 = 42.5%
(a representing the number of years of marriage during active duty, and b representing Petitioner’s total years of active duty service).
            In agreeing to this formula, the parties assume that each will be responsible for state and federal income tax on that portion of retired pay he or she receives after the pay is divided.

2.         The respondent’s right to receive her portion of petitioner’s military retired pay shall begin on ______________ by agreement of the parties.  _____________ was the date the parties Dissolution Decree that was signed by the Honorable ________________. (If receiving retired pay benefits at time of the dissolution).  Petitioner is currently receiving payment of his longevity retirement.  .
3.         (This provision benefit the servicing servicmember, as it does not give credit to the spouse for rank earned after the date of the dissolution).  The amount due to the respondent under this order shall be increased each time the Petitioner receives an active duty pay, reserve pay or retired/retainer pay cost of living adjustment (COLA).  The increase shall be the same percentage as the cost of living adjustment the Petitioner receives
4.         It is the Petitioner’s obligation to pay to the respondent the monthly amounts set forth and due her under this provision, and if the finance center, for any reason, does not withhold and pay directly to the respondent the petitioner shall pay to the respondent the difference between the amount she is entitled to receive under this provision and the amount, if any, she receives through direct payment.
6.         ( This paragraph through paragraph 10 are for the benefit of the spouse.  It is intended to prevent the servicemember from taking action post dissolution to reduce benefits to the spouse while increasing a benefit to the servicemember).  It is the intent of the parties that the respondent receives payment equal to ________% of the Petitioner’s gross retired pay each and every month from the date of initiation plus COLA increase as set forth above.
7.         The petitioner shall not take any action which would defeat, reduce, or limit the respondent’s right to receive her share of the petitioner’s military retired or retainer pay benefits, including merging retired pay with other pensions, or waiving any portion of retired or retainer pay in order to receive increased disability pay.  If petitioner does breach this provision, he shall indemnify and pay directly to respondent any sums reduced by such action. 

8.         If Petitioner becomes entitled to Concurrent Retirement & Disability Pay (CRDP[1]) by receiving VA disability payments, Respondent shall have the right to the same percentage of Petitioner’s CRDP benefits as she was awarded from Petitioner’s retired pay benefits as set forth in this Order.
9.         Petitioner agrees not to elect CSB/Redux[2]  which would reduce Respondent’s share of the retired pay. Petitidoner agrees that if he exercises this option, he shall immediately pay, upon receipt, to Respondent a sum equal to the application of Respondent’s percentage share of Petiitioner’s retired pay benefits to the CSB/Redux benefit.  Respondent’s percentage share is as set forth in paragraph 1 above. 
10.       The petitioner agrees to promptly provide any information or documentation the respondent may need to complete a request for direct payment of disposable retired or retainer pay form the appropriate military finance center, addressed as follows:
            Garnishment Operations Directorate
            Code L-S54 2615 (last four digits of service member’s SSN)
Defense Finance and Accounting Services
            Cleveland Center
            P.O. Box 998002
            Cleveland, OH 44199-8002

(put in an envelope certified mail and mark on the envelope, direct payment or survivor benefit)

            11.       The petitioner shall designate the respondent as his beneficiary under the Survivor’s Benefit Plan (SBP).  The petitioner shall elect the spouse-only option, and he shall select as the base amount equal to fifty (50%) of his monthly gross retired or retainer pay.  If retired/retainer pay benefits paid to Respondent are not charged for the cost of SBP benefits she receives under this Order, Respondent shall repay to Petitioner on a monthly basis the cost of Petitioner of this SBP election.  If not voluntarily made each month, payment shall be made within five (5) days of demand by Petitioner and proof of the SBP cost being charged to him or paid by him.
12.         For purposes of this agreement, the term “gross retired/retainer pay” means the monthly retirement benefit the petitioner is entitled to receive, except that monthly Survivor Benefit Plan (SBP) costs shall be deducted in calculating “gross retired/retainer pay” if the petitioner has designated the respondent as the SBP beneficiary as required by this agreement.  It includes retired or retainer pay paid or payable due to longevity of active duty and/or reserve service and all payments paid under the provisions of Title 10, Chapter 61, United States Code.  It includes Current Retirement  and Disability pay (CRDP) if received and all amounts of retired or retainer pay” the petitioner in any manner actually or constructively waives or forfeits for any reason or purpose.
13.       The parties hereto certify (i) that they were married to each other ___ years, ( date of marriage – , date of dissolution -  ) during with time the petitioner performed ten (10) years or more of credible service; and, (II)  that at the time of the dissolution the Court had jurisdiction over service member as required by 10 USC § 1408(c)
14.  The parties shall comply with the terms of this order in good faith and shall notify the court and the other party if there are any substantial changes which would impact the retired pay of the Petitioner. Examples of this include the remarriage of Respondent before age 50 (SBP coverage ends) and election by Petitioner of VA disability compensation or Combat-Related Special Compensation, either of which would diminish the available retired pay of Petitioner (thus reducing the share for Respondent).
            15.       That upon issuance of the Court’s judgment and decree incorporating the terms and provisions of this agreement, respondent shall file with the designed agent of the military service an application conforming to the requirements of DD form 2293, (or successor form) Request for Respondent Payments from Retired Pay, or a signed statement giving notice to make direct payments to the respondent from petitioner’s retied/retainer pay, a certified copy of this Order,  a statement that this Order has not been amended, superseded, or set aside, identifying information on petitioner to enable processing of the request, and a statement that the respondent shall agree that any future overpayments are recoverable and subject to involuntary collection from respondent or her estate.
            16.       The petitioner shall cooperate in all acts, supply all documents and information, which will facilitate the designated agent of the uniformed service to approve and process this Order application.
17.       The parties agree that the Court shall retain jurisdiction over the issues raised in this provision indefinitely, so that the terms of this provision can be subject to future modification by the Court upon a showing that the intent of the parties is not being met by future or present events.
            18.       That respondent shall retain all right to garnishment provided for in 32 CFR 63, 5 CFR 581 and 42 USC 659.
            THE RELIEFE HEREIN ORDERED IS EFFECTIVE _____________ THE DATE OF THE PARTIES DISSOLUTION;
SO ORDERED THIS __________ DAY OF ______________, 2006

______________________________________
Judge of District Court


[1] CRDP represents concurrent receipt disability and retirement pay.  When a servicemember receives CRDP he is receiving both retirement and disability compensation.  Prior to 2004, this was forbidden by law.  The law has a ten year phase in period, unless the disability rating is 100%
[2] a bonus of $30,000 paid at or around 15 years of service, the election of which reduces the military pension)



 
Disclaimer: Blogs posted herein are intended neither as legal advice, nor do they create nor attempt to create an attorney-client relationship. The person viewing my blogs is admonished that an attorney-client relationship may only be created with the express consent to the parties to it. This blog is only the opinion of the author and are not expressed authority on any of the subjects discussed

No comments:

Post a Comment