Divisible Components
The agency will apply a valid partition award to the sum of all of the divisible components which make up the employee's monthly annuity, unless the court order specifies otherwise.
If the parties wish to restrict the award to only one divisible component, the parties must specifically state which divisible component the parties wish to divide.
Disability Annuity
Unless the decree order expressly excludes a disability annuity from partition, the agency will apply a partition award to both a retirement and a disability annuity.
The parties may exclude partition of a disability annuity through language such as: "The parties expressly agree that this paragraph shall not apply to any disability annuity paid by the Railroad Retirement Board."
If the exclusionary language is present in the document, the agency will not partition the employee's disability annuity. The partition will begin when the disability annuity is converted to an age and service annuity when the rail employee reaches full retirement age.
Cost-of-living Adjustments
Calculations will vary depending on how the awarded is stated in the decree or order.
Fixed Dollar Amount Award
Under a Fixed Dollar Amount Award, cost-of-living increases do not accrue to the separated/former spouse where the award is in a fixed dollar amount.
Formula Award
Under a Formula Award, a proportional share of any cost-of-living increase in the employee's divisible benefits would also accrue to the separated/former spouse through the month prior to the month of the employee's death.
Percentage Award
Under a Percentage Award, a proportional share of any cost-of-living increase in the employee's divisible benefits would also accrue to the separated/former spouse through the month prior to the employee's death, because the amount awarded is not awarded as of a particular point in time.