How to calculate former spouse annuity portion?


How does the former spouse portion of annuity get calculated? Is it based on your gross annuity benefit or is it from the amount after taxes and insurance are deducted?

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Posted by (Questions: 1, Answers: 0)
Asked on April 24, 2017 8:43 pm
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I am going to quote you with the same answer I posted March 2 with a very similar question: Without seeing the order that was sent to OPM, I can only guess that your former spouse was awarded what OPM terms a pro-rata share award. Generally speaking, OPM will calculate your annuity at the time of your retirement in the same fashion as if you hadn’t been divorced. They will then develop a fraction that they will use to divide your annuity. The order could divide your self-only annuity or your gross annuity – all depends on the wording in the order. The numerator of the fraction is typically the number of months that you were married and a federal employee. The denominator will be your total creditable service, including military time and unused sick leave (unless the order stated otherwise). Suppose your career length is determined by OPM to be 276 months and your marriage length was 156 months. The fraction is 156/276 = 56.52%. That represents the marital share of the annuity. If he was awarded 50%, then his award is 28.26%. If your annuity is $3,000 per month, he receives $847.80 per month.
We made a number of assumptions here, and there are other items that might have been addressed in the order, such a survivor annuity and its related cost as well as possibly using a high-3 based upon your date of separation. Orders also state a specific treatment of military deposit service.

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Posted by (Questions: 0, Answers: 605)
Answered on April 25, 2017 2:38 am