Federal Disability & Retirement Law

We represent and advise federal employees and their family law attorneys regarding the OPM Court-Ordered Benefits process. These come into play when a federal employee and their spouse goes through the divorce process. When federal employees and their spouses become divorced or separated their retirement and insurance benefits can be affected by a court order in accordance with the U.S. Code and Code of Federal Regulations (CFR).  The Office of Personnel Management (OPM) must generally comply with qualifying court orders, decrees, or court-approved property settlements in connection with divorces, annulments of marriages, or legal separation of federal employees or retirees that award former spouses retirement and insurance benefits. When these issues arise, it is important to obtain the advice of federal retirement attorney.

Ramifications of Court-Ordered Benefits

For federal employees or spouses, a court order related to a divorce or separation may have a number of significant effects. This may include the following:

• Dividing a Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) annuity.
• Dividing a refund of CSRS or FERS employee retirement contributions.
• Providing a survivor annuity payable upon the death of a federal employee or retiree.
• Permitting a former spouse to continue coverage under the Federal Employees Health Benefits program (FEHB).
• Requiring a federal employee to cover his or her children under FEHB.
• Requiring a federal employee or retiree to assign his or her Federal Employees’ Group Life Insurance (FEGLI) coverage to a former spouse or children.
• Requiring a federal employee to name his or her former spouse or children as beneficiaries under FEGLI.

Benefits Not Affected by Court Order

In general, a court order related to a divorce or separation cannot:

1. Make a former spouse of the federal employee eligible for Federal Employees Dental and Vision Insurance Program Benefits (FEDVIP).
2. Require an agency or OPM to enroll an employee or annuitant in a FEDVIP plan to cover his or her children.
3. Provide eligibility to a former spouse for enrollment in a Federal Long Term Insurance Program.

OPM’s Response to Court Orders

OPM does not always follow court orders from different jurisdictions. There could be several reasons why OPM does not adhere to court orders, decrees, or court-approved property settlements in connection with divorces, annulments of marriages, or legal separation of federal employees or retirees that affect retirement or insurance benefits.   The most common reason is that numerous court orders are drafted under the assumption that the Employee Retirement Income Security Act (ERISA) applies to CSRS or FERS benefits.  ERISA court orders are often described as a Qualified Domestic Relations Order (QDRO), which is not acceptable to affect CSRS or FERS benefits. Unless the QDRO expressly states that it is written in conformity with OPM’s regulations, OPM will generally not accept the court order for processing.

A Court Order Acceptable for Processing (COAP) generally requires three separate provisions – employee annuities, refund of employee contributions, and survivor annuities – one addressing each type of benefit that the court can affect.  There are a number of variables that can come into play with respect to OPM’s handling of a court order involving retirement.

Working with Family Law Attorneys

Our federal retirement attorneys frequently work with local family law attorneys regarding OPM Court-Ordered benefits issues. Many family law attorneys are quite familiar with state law and retain us to assist them to draft OPM provisions which increase the chances that they will be acceptable to OPM. This is important as the OPM process is distinct from any state laws governing divorces.

We Can Help

Our law firm advises and represents individuals before OPM in such matters.  Please contact Berry & Berry, PLLC to schedule a consultation with an attorney to discuss your individual matter as each type of case before OPM is different and may require different legal strategies.