1. Does the employee have a divisible account balance?
An employee does not have a divisible account balance with respect to any specific time period. The agency cannot establish a separate account for the share awarded to a separated spouse or former spouse.
2. What happens to a partitioned annuity upon the death of the employee or the separated spouse or former spouse?
The RRA allows for the continued payment of a partition award after the employee’s death. The payment will not terminate until the death of the separated/former spouse, unless the decree or order provides for an earlier termination date.
The continued payment will be in the same amount as the month prior to the month of the employee's death, plus any other divisible annuity components included in the partition award (e.g., supplemental annuity, vested dual benefit) except for the overall minimum increase, which is not payable after the employee's death.
Cost-of-living adjustments will be made to the partition award after the employee’s death where the partition is calculated as a percentage of the employee's divisible benefits.
If the separated/former spouse dies first, the amount of the partition award goes back to the employee as his or her property and does not become the property of the spouse’s or former spouse’s estate.
After an employee’s death, the separated/former spouse may qualify for payment of a survivor annuity. The estimated amount of the survivor annuity is equal to the Tier I annuity component minus any social security benefit to which the surviving divorced spouse may be eligible to receive. Questions about the survivor annuity should be directed to an agency Field Office.
The agency will disregard any state court determination as to who is the surviving divorced spouse.
3. When may partition award payments begin?
Assuming the agency has fully processed the partition, the partition awards payments cannot begin before the month in which the following three conditions are met:
- The employee has completed 10 years of railroad service (or 5 years of railroad service after December 31, 1995);
- The employee is 62, or if deceased, would have been 62; and
- The separated/former spouse is age 62.
4. What is the maximum amount that can be awarded in a state court order
partitioning the employee's benefits?
The RRA does not limit the amount that a court may award to a separated/former spouse as their share of the employee's divisible benefits.
Note: A court cannot award an amount greater than 100% of divisible benefits.
5. Can the agency be joined as a party to a divorce action?
No. The agency cannot be joined as a party to any action for divorce, separation, or annulment. As a federal agency, the agency is immune from suit in state domestic relations actions, and the records it maintains are not subject to subpoena by the court.
6. Can the agency report whether an employee has a profit-sharing plan, 401(k) plan, or other similar asset through his or her railroad employer?
No. The agency does not maintain that information. Questions about stock options, deferred savings plans, employee stock ownership plans, life insurance, etc., should be directed to the railroad employer.
The agency can only supply information about the employee's actual or potential right to receive an annuity under the RRA.
The amount of any actual or estimated annuity payments under the RRA may also be reported in connection with a divorce, legal separation, or annulment.
7. Does a former spouse’s remarriage affect payment of the amount of the partition?
Remarriage has no effect unless the court order granting the partition requires termination of payment upon remarriage.
The partitioned amount is an award of property and not a benefit that could be affected by remarriage of either party.
8. Does an employee's marriage have to last at least 10 years before a court can order a partition of his or her annuity?
No. The length of the parties’ marriage is not relevant to whether an employee's annuity is divisible.
9. What is the difference between a Divorced Spouse Annuity and a partition award?
Under the RRA the former spouse of an employee may become independently eligible for a Divorced Spouse Annuity. Federal law provides for a Divorced Spouse Annuity, which does not reduce a railroad employee’s retirement annuity. In addition, a state court cannot
determine whether a person is entitled to a Divorced Spouse Annuity. In order to be eligible for a Divorced Spouse Annuity, the former spouse must meet the statutory requirements. The statutory requirements can be found here: General Conditions Under Which a Person is Entitled to a Railroad Retirement Divorced Spouse Annuity | RRB.Gov.
The Divorced Spouse Annuity is not payable if the former spouse is remarried. The Divorced Spouse Annuity may be payable even though the employee is not yet entitled to an annuity under the RRA, or is entitled but the employee's annuity is not payable due to work or earnings.
In contrast, a partition award is a specified payment of a part of the employee's annuity pursuant to a court order, reducing the annuity paid to the employee. A partition award is not payable for any month in which payment of the employee's annuity is suspended due to work, earnings, or to recover an overpayment.
10. Can a separated/former spouse or surviving divorced spouse receive both a partition award and an annuity?
Yes. The separated spouse, divorced spouse or surviving Divorced Spouse Annuity is payable to qualified individuals based upon the provisions of the RRA, and a court cannot affect entitlement to such annuity. The partition award is payable according to the terms of a valid court decree or order and is not affected by the payment of an annuity under the RRA to the separated spouse or former spouse. A spouse, divorced spouse or surviving Divorced Spouse Annuity is payable to qualified individuals based upon the RRA.
11. Will the Office of General Counsel pre-approve a draft court order dividing an employee's annuity under the RRA?
Yes, the Office of General Counsel will review draft orders.
12. What is the difference between a Surviving Divorced Spouse Annuity and a partition payable after the employee's death?
A Surviving Divorced Spouse Annuity is similar to a Divorced Spouse Annuity. It is a monthly benefit payable to an eligible surviving former spouse based on the provisions of the RRA. See 20 C.F.R. § 216.62.
13. What happens if the employee is not yet entitled to an annuity, but the partition is approved?
If the employee is not yet entitled to an annuity, the agency will file the approved order in its official records under the employee's social security number. (If returned, it will also file the signed separated/former spouse agreement and direct deposit form).
When the employee becomes entitled to an annuity, or the age and service conditions are met, the agency will send notice to the separated/former spouse at the most current address in the agency’s records. If the partition has been fully processed, partition payments will begin as soon as the annuity is in pay status.
If the agency does not have a separated/former spouse agreement and direct deposit sign-up form on file, the agency will send the same notice, but also include a separated/former spouse agreement and direct deposit sign-up form. The agency will withhold the partition award for three months from the notice. If the completed forms are not returned, the partition award will revert to the employee.
14. What happens if the partition is approved (and processed) but the employee dies before becoming entitled to an annuity?
If a separated/former spouse agreement has been returned and the employee dies before becoming entitled to an annuity, payment of the partition award can still occur and will begin in the month the following three conditions are met: 1) the employee completed 5 years of railroad service (or 10 years of railroad service if before December 31, 1995); 2) the separated/former spouse is age 62; and 3) the employee would have been age 62.
15. How are railroad retirement annuities funded?
Under the Railroad Retirement Tax Act (RRTA), railroad employees and railroad employers pay employment taxes that fund payment of railroad retirement annuities. See 26 U.S.C. §§ 3201-3241). The Internal Revenue Service collects RRTA taxes. RRTA taxes are similar to contributions under the Federal Insurance Contributions Act (FICA). Like FICA contributions, properly collected RRTA taxes are not refundable.
16. Does the agency administer any private pensions?
The agency does not administer any private pensions. Any questions regarding stock options, deferred savings plan, employee stock ownership plan, life insurance, etc., should be directed to the railroad employer.