Divorce and Your Benefits

Overview

Divorce and Your Benefits

The New York State Court of Appeals has determined that retirement benefits may be considered marital property and can be divided between the Participant (NYSLRS member) and their ex-spouse when the marriage ends. Retirement benefits could be affected in any of the following ways:

  • An ex-spouse may be entitled to a portion of the pension;
  • A member may be required to name their ex-spouse as beneficiary of any pre-retirement death benefit payable;
  • A member may be required to name their ex-spouse as beneficiary of any post-retirement death benefit payable;
  • A member may be required to elect a pension payment option (sometimes called a retirement option) that provides a continuing benefit to their ex-spouse in the event of the member’s death;
  • An ex-spouse may be entitled to a portion of a retiree’s cost-of-living adjustment.

Any division of retirement benefits must be stated in the form of a Domestic Relations Order (DRO) — a legal document issued by the same court that issued the judgment of divorce. A DRO gives NYSLRS specific instructions on how benefits should be divided. It is important for members to understand the impact a DRO might have on their benefits.

The information in this presentation is not intended to be a substitute for New York law or the rules and regulations governing NYSLRS, which may change. NYSLRS staff cannot provide legal advice to any party. Members, ex-spouses and other interested parties should seek the advice of an attorney regarding matrimonial matters.

 


Rev. 2/23