Key points when legally Dividing Railroad Retirement benefits

Understanding the intricacies of dividing Railroad Retirement benefits during legal proceedings is vital for individuals navigating divorce or separation. Legal partition involves allocating specific components of a railroad retirement annuity to a former spouse, typically excluding certain benefits like survivor benefits.

But what exactly does legally dividing Railroad Retirement entail, and what are the responsibilities of the Railroad Retirement Board (RRB) in this process?

What does legally dividing Railroad Retirement mean?

Legal partition involves dividing select railroad retirement annuity components in divorce proceedings, paying a portion to a former spouse. Garnishment enforces child support or alimony payments, deducting from annuities. Spouse, divorced spouse, and survivor benefits aren’t divided.

What is the RRB (Railroad Retirement Board) required to do?

The Railroad Retirement Board (RRB) is legally obligated to adhere to valid legal partition orders concerning the non-tier I components of a railroad retirement employee annuity. This obligation stems from the Railroad Retirement Act (RRA), which mandates compliance with such orders.

Railroad retirement employee annuities consist of two tiers, with the possibility of a supplemental annuity for annuitants meeting specific eligibility criteria, including having at least one month of compensated railroad service before October 1981. The tier II and supplemental annuity portions of a railroad retirement annuitant’s benefits may be subject to legal partition as outlined in the relevant provisions of the RRA.

What happens when the RRB received a legal partition request?

For a partition request to be considered a valid legal partition order by the RRB, it must meet specific criteria. This includes being a recently certified copy of a court order, identifying the employee and former spouse clearly, specifying the amount or formula for payment, and obligating the RRB to make payments directly to the former spouse.

You have be granted partitioned legal payments, what do you need to do to receive them?

To receive partition payments from the RRB, a former spouse or spouse must submit a certified copy of the court order(s) to the RRB’s Office of General Counsel (OGC). They can email, fax, or mail the documents along with necessary details such as the employee’s name and social security number.

The OGC will review the information and, if compliant, send an Agreement of Spouse or Former Spouse form. The recipient must enroll for direct deposit and update their address with the local RRB field office. Payments will only be issued upon completion of all requirements.

Mailed to [email protected],

Faxed to (312) 751-7102,

Or mailed to the following address:

Office of General Counsel

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, IL 60611-1275

I heard about a 10 year rule does that affect the legal partition?

The duration of the former spouse’s or spouse’s marriage to the railroad employee doesn’t impact entitlement to partition payments. This differs from the criteria for a railroad retirement divorced spouse annuity, which typically necessitates a minimum marriage duration of at least 10 years for eligibility.

In the case of partition payments, however, the length of the marriage is not a determining factor in whether the railroad employee’s annuity components are subject to partition. Therefore, regardless of how long the former spouse or spouse was married to the railroad employee, they may still be entitled to receive partition payments if a valid legal partition order is in place.

Is tier 1, or Tier 2 components partitioned, or both?

In the context of railroad retirement employee annuities, only specific components are eligible for partition. Tier I components, which constitute a basic portion of the annuity, are not subject to partition under the Railroad Retirement Act (RRA).

Consequently, any court order directing the partition of a tier I component would be disregarded by the Railroad Retirement Board (RRB). However, tier II components, representing additional benefits, and supplemental annuities may be subject to partition.

The partitioning of these components entails a portion of the benefits being allocated to the former spouse or spouse as stipulated by the court order. It’s important to note that while

and supplemental annuities are eligible for partition, the court order may restrict partition to only one of these components.

Additionally, railroad retirement disability annuities may be exempt from partition unless expressly prohibited by the court order. In cases where disability annuitants reach full retirement age, their annuities convert to age and service annuities, at which point partition may be applied.

How much of my Railroad Retirement can be paid to my spouse or former spouse?

The amount of a railroad retirement employee annuitant’s tier II component and/or supplemental annuity paid to a former spouse or spouse is determined by the court order. This amount can be a fixed dollar amount or calculated as a ratio, percentage, or fraction of the annuity components selected for partition.

However, it must be at least $1. If the specified dollar amount exceeds the total eligible annuity components, the lesser amount is paid, with any increase going to the former spouse until the court-ordered amount is met.

Conversely, if the dollar amount is less than the total eligible components, that amount is paid. If the partition amount is determined based on marriage length compared to railroad service length, months (not years) are considered, with any discrepancies addressed accordingly.

Importantly, neither the employee nor the former spouse can appeal the partition amount with the RRB; disputes must be resolved in the issuing state court.

Partition has been granted, but for how long?

Legal partition’s duration is determined by the court order submitted to the OGC. The RRB may start withholding partition payments upon the earliest of specified conditions, including the annuity beginning date or a date indicated in the court order.

Payments cannot commence before the OGC receives a valid court order, and disbursement to the former spouse depends on submitting required documentation. Partition payments cease upon the former spouse’s death or if the court order is rescinded or terminated by specified events.

I or my former spouse has remarried what happens to my court ordered payments?

Partition payments to a former spouse or spouse may be subject to certain restrictions. Firstly, if the railroad employee’s annuity is suspended due to work, earnings, or to recover an overpayment, partition payments for that period are not made.

However, partition payments can persist after the employee’s death unless specified otherwise in the court order. Regarding remarriage, unless the court order explicitly states otherwise, the former spouse’s remarriage does not terminate partition payments.

In summary, while there are limitations on partition payments related to the employee’s annuity status, remarriage alone does not automatically stop these payments unless specified by the court order.

What happens if the railroad employee or the spouse/former spouse dies?

Upon the death of the railroad employee or former spouse or spouse, certain provisions govern the partitioned annuity. The Railroad Retirement Act (RRA) allows for continued payment of partition awards after the employee’s death, even if the employee is not entitled to a railroad retirement annuity at the time.

However, partition payments cannot commence until specific criteria are met, such as the employee completing 10 years of railroad service and the former spouse reaching age 62. Payment ceases upon the death of the former spouse or spouse, unless the court order specifies an earlier termination.

If the former spouse or spouse passes away before the employee, the partition amount reverts to the employee, not to the former spouse’s or spouse’s estate.

So, what’s the difference between divorced spouse annuity and a partition award?

There are differences between a railroad retirement divorced spouse annuity and a partition award. The eligibility for a divorced spouse annuity is determined solely by the Railroad Retirement Act (RRA), not by a court. It’s limited to the tier I component and may be payable even if the employee’s annuity is suspended due to work.

Additionally, it doesn’t affect the employee’s retirement annuity amount.

On the other hand, a partition award is determined by a state court and applies to non-tier I components like the tier II or supplemental annuity. It’s not payable if the employee’s annuity is suspended, and it does reduce the employee’s annuity amount.

Where can I find more information?

For more information about how legal partition affects railroad retirement employee annuities, individuals can contact an RRB field office toll-free at 1-877-772-5772 or visit in person.

Field office addresses and hours are available through the Field Office Locator or by calling the toll-free number. Additionally, those needing specific guidance or assistance can contact the Office of General Counsel (OGC). T

he RRB publication, “Attorney’s Guide to the Partition of Railroad Retirement Annuities,” is also accessible online under the “Resources” tab. of the RRB.gov

Conclusion

In conclusion, legal partition under the Railroad Retirement Act (RRA) allows for the division of non-tier I components of a railroad retirement annuity, such as tier II and supplemental annuities, in divorce proceedings.

The RRB is mandated to comply with valid court orders regarding partition payments, ensuring former spouses receive their entitled benefits. By understanding the process, requirements, and implications of legal partition, individuals can navigate this aspect of Railroad Retirement with clarity and confidence.

For further information or assistance, contacting an RRB field office or referring to resources like the “Attorney’s Guide to the Partition of Railroad Retirement Annuities” can provide invaluable guidance.