How Divorce Can Affect Your Retirement Benefits
The nation’s highest divorce rate (43%) is among men and women ages 55 to 64, according to data from the U.S. Census Bureau. To learn how divorce may affect your retirement benefit, visit Divorce and Your VRS Benefits.
Your Benefit Payout Option May Be Affected
The way you receive your monthly retirement benefit is based on the payout option you chose when you applied for retirement. You had the option of choosing from the Basic Benefit, a Basic Benefit with a Partial Lump-Sum Option Payment (PLOP), the Survivor Option, a Survivor Benefit with a PLOP or the Advance Pension Option.
If you chose the Survivor Option and designated your spouse as your survivor, you may name a new survivor or revert to the Basic Benefit if:
- You divorce with fewer than 20 years of marriage.
- You divorce after 20 or more years of marriage and your spouse dies, remarries or consents in writing to a change in benefit.
Your Benefit Amount May Be Affected
An Approved Domestic Relations Order (ADRO) is a court order related to marital property rights because of a divorce. If you divorce, all or a portion of your retirement benefit or defined contribution account(s) may be regarded as marital property in a property settlement.
The Code of Virginia authorizes VRS to make a direct payment to a former spouse if he or she is awarded part of your benefit by a court. The court, not VRS, decides whether to divide your retirement benefit or defined contribution account(s) and how your benefits are to be divided. Provide your attorney with VRS’ required pre-approved ADRO forms for the defined benefit plan and the defined contribution plans.
VRS will not release information about your VRS accounts or benefits to anyone other than yourself without your written authorization unless your information is subpoenaed.
