Federal and state law impact the division of retirement benefits in Connecticut divorce matters. While the allocation of divorcing parties’ assets is usually reserved for state law, dividing retirement benefits is unique. Connecticut Superior Court judges must defer to the federal Employee Retirement Income Security Act of 1974 (ERISA), where contrary state laws would otherwise govern.
ERISA was primarily designed to protect the interests of pensioners, partly by prohibiting private pension plans that allow for the transfer, gift, or sale of pensioners’ benefits. The exception to this rule is a Qualified Domestic Relations Order (QDRO), for which ERISA specifies strict conditions.
However, ERISA is inapplicable to governmental plans, such as Connecticut’s Municipal Employees System (CMERS). Because of this, state law is relevant in certain divorce matters where retirement benefits are at stake.
ERISA and CMERS involve complex legal procedures that a seasoned family attorney can advise on. Call our law office today to schedule an initial consultation.
ERISA is a federal law establishing minimum standards for most voluntarily created retirement and health plans in private industry, ensuring protection for individuals participating in these plans. One way ERISA operates to achieve that goal is through asserting that benefits provided under private plans may not be assigned or alienated. In other words, the pensioner’s benefits cannot be sold, gifted, or transferred to another person or party.
The exception to this rule is a Qualified Domestic Relations Order. The former spouse of a pensioner has grounds for receiving some or all of the pensioner’s benefits if they can present a QDRO that conforms to the sprawling requirements of ERISA’s 29 U.S. Code § 1056(d)(3).
A Connecticut lawyer well-versed in ERISA’s intricacies can counsel their client on these federal rules and how they affect the division of benefits in a divorce.
CMERS is a retirement plan governed by the State of Connecticut and, therefore, outside the reach of ERISA. Under the State Employees Retirement Act, a Superior Court can divide retirement benefits following “a valid plan approved domestic relations order” (PADRO). This is essentially a judicial order that satisfies all requirements in the General Statutes of Connecticut and the provisions set forth by CMERS.
Connecticut lawyers familiar with ERISA and CMERS can help you decide on a course of action for your needs during a divorce. Whether protecting your interests as a pensioner or collecting on a pensioner’s retirement benefits as a former spouse, a knowledgeable attorney is your greatest asset. Call our professional law firm today to learn more about how to divide retirement benefits in a divorce.
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