QDRO Corner: Federal Pension Plans

There are 34 federal pension plans (according to a 1996 report by the General Accounting Office). Of these pension plans, approximately 97% of the federal workforce participate in either the Federal Employees’ Retirement System, Civil Service Retirement System, or the military pension system.

Each plan has its own set of rules for vesting, contributions, and division upon divorce. The plans also are maintained by different agencies. For example, the Office of Personnel Management manages FERS and CSRS, whereas the Defense Finance Accounting Service manages the military pension system, and the Department of State manages the Foreign Service Pension Systems. If you represent a person who has worked at any time for the federal government (as a civilian or military member) or their spouse, it is very important that you have them look into the benefits available to them. 

While approximately 97% of the federal workforce participate in one of the three plans listed above, the federal workforce is very large, so it is quite possible you may represent someone in the remaining 3%. Other common plans in the DC Metropolitan area include the Foreign Service Pension System and the Federal Reserve Plans.

Many of these plans will also allow the interest to be transferred from one plan to another, should the employee work for an agency and accrue interest in one plan, and then transfer agencies and begin to accrue interest in another plan. In a settlement agreement, it is important to address the possibility of the employee consolidating their interest into one plan, and if representing the employee, to address whether any of the interest is pre-marital.

If you think you have a client or an opposing party with a federal pension plan and need assistance determining the possible benefits or what can be divided by a court order, we can help .