Article 19, Incentive and Purchased Service
Additional service credit, whether given because of an incentive or purchased, may affect the calculation of the ex-spouse’s share.
In the case of service credit provided by Article 19 or service credit awarded pursuant to an incentive, the Retirement System will not apportion the additional service where the numerator (marital period) is represented as an exact number of months or years. Where the numerator is an open date period (i.e., service accrued between the date of marriage and the date of the commencement of the divorce action), the Article 19 and/or incentive service will be apportioned by prorating this service in the numerator and including the total service credit in the denominator. As a general rule, Domestic Relations Orders (DROs) that lock in a flat dollar distribution (rather than percentage) or those that calculate the ex-spouse’s share using a hypothetical date, will not be affected by service or salary enhancements.
If military service is purchased, the Participant’s total service credit and monthly benefit at retirement is increased to reflect the additional service.
A Participant has 30 years service, 15 of which were earned while married. Using the Majauskas formula, the ex-spouse’s share would be 25 percent (50 percent of 15/30).
If the Participant purchases three years of military service, his ex-spouse’s share decreases to 22 percent (50 percent of 15/33).
A Participant’s obligations regarding any Article 19 incentive or military service should be addressed specifically in the DRO.