Life brings many changes. To name a few: changes in sleeping patterns; changes in eating patterns; and changes in finances. One change that some of us may face, is divorce or state-registered domestic partnership dissolution. When that happens, your ACERA benefits may be impacted.
Your Ex-Spouse/Partner May Seek Division of Your Retirement Benefit
If your marriage or state-registered domestic partnership overlapped with your ACERA service, there is certainly a chance that your spouse/partner (soon to be ex-spouse/partner) will seek a division of your ACERA benefit monthly retirement allowance, so as to distribute his/her community property from that payment. The division and distribution of community property from your ACERA benefit is something ACERA has experience with.
ACERA Only Shares Your Information With Your Authorization
The first thing to remember is, ACERA will not share your member information with anyone you have not authorized us to share it with. This means that even if you hire an attorney, actuary, or work with a mediator or facilitator, ACERA will not communicate with those persons or otherwise share information with those persons about your retirement benefits. In simple terms, your member records are confidential by Government Code section 31532 and ACERA will not release information unless you provide written (signed) authorization for that communication. You can use the Authorization to Release Information Form to provide that authorization. Fill this out, sign it and return it to us. This is the only way we will communicate with a third party about your ACERA benefits.
Getting a Written Property Estimate
The next thing to remember is that ACERA can provide you with a written community property estimate. This is an analysis and calculation of the amount your ex-spouse is eligible to receive as his or her distribution of community property, from your ACERA monthly retirement allowance. You can request this by completing and returning ACERA’s .
A Few Steps You Should Consider
If you file for divorce, you may want to consider taking the following steps:
The Court May Make a Decision Regarding Your Retirement Benefits
In the event of your divorce or dissolution of state-registered domestic partnership, a court order may be made concerning your retirement benefits. For example, the court may issue a judgment in which community property interests in your retirement benefits are awarded to your ex-spouse, when the parties do not agree in writing in the final court judgment that your ACERA benefits are your sole and separate property.
If it is determined by the court or through an agreement between you and your ex-spouse/partner that ACERA benefits will be divided, two methods of payment are available:
- Separate Accounts - (This option is only available if you divorce or dissolve your state-registered domestic partnership before retirement.) This method divides the community property, including accumulated contributions, interest, and service credit, into two separate accounts, one for you and one for your spouse/partner. This option is not available after ACERA has begun retirement benefit payments to a member.
- Shared Account - Under this method, the account itself is not divided, however, the benefit payments are divided between you and your spouse/partner after you retire.
ACERA Needs Copies of Your Documents
The last thing we want to tell you is that you will need to share legal documents with ACERA, as well as complete certain legal documents that will become court orders when executed by the judge/court and filed in the divorce proceeding. A thorough description and explanation of those documents can be found in the . But these documents include:
- The judgment of divorce
- All attachments such as marital settlement agreements and property orders
If you get divorced or dissolve your state-registered domestic partnership prior to retirement, ACERA will need to have copies of the above documents on file BEFORE we can process your retirement.
Continuing Retiree Healthcare Coverage While Legally Separated
If an ACERA member and their spouse or state-registered domestic partner are legally separated, the legally separated spouse/partner is entitled to continue their Medical, Dental, and Vision coverage through ACERA as long as the ACERA member has chosen to keep them covered or as directed by the Domestic Relations Order (DRO).
We’re Here For You
Retirement brings many changes. After years and years of work, your ability to adapt to change has already been tested. You can handle the marital status change with some help, support, and encouragement. If you’ve read the and have additional questions, ACERA has staff who can explain any of the documents and forms on our website relating to divorce and its impact on your ACERA benefits. Call us and ask to speak to the Legal Department regarding divorce.
How the Ex-Spouse/Partner’s Eligibility for Retirement Works With Their Separate Account
In the event of a divorce or state-registered domestic partnership dissolution where ACERA divides the member’s account into a separate account for the member and a separate account for the ex-spouse/partner, ACERA will use the following criteria to determine that the requirements for retirement eligibility have been met:
- For the member:
- Combined years of service credit from both accounts
- The member’s years of membership (where 10 years of membership is needed for eligibility)
- The member’s age
- For the ex-spouse or ex-state-registered domestic partner:
- Combined years of service credit from both accounts
- The member’s years of membership (where 10 years of membership is needed for eligibility)
- Either the member’s age or the ex-spouse/partner’s age, whichever is greater*
* If the member is older and dies before retirement, the surviving ex-spouse/partner’s eligibility will still be based on what the member’s age would have been while living.
