While QDROs target private sector ERISA plans, a Court Order Acceptable for Processing (COAP) targets Federal Employees Retirement System (FERS) plans, Civil Service Retirement System (CSRS) plans and Thrift Savings Plans (TSP). These plans have their own unique requirements and do not have a pre-approval process, nor will the Office of Personnel Management (OPM) recognize a QDRO or QDRO language to divide their plans. Effectively drafting a COAP that is in compliance with the OPM and accounts for the various benefits offered by the plan is critical.

A poorly drafted Court Order that targets federal plans can nullify benefits, fail to allow for proper distribution options and fail to account for future contingencies that may occur such as; early retirement, Cost of Living Adjustments (COLAs), subsidized benefits, remarriage and premature death or disability. For instance, if a former nonmember spouse remarries prior to age 55, they will lose all survivor benefits from a federal plan unless an Insurable Interest Annuity was accounted for in the Court Order.

Toxby & Associates, Inc. charges a flat fee of $500 for each Federal Division Order. Our COAP drafting services include:

• Drafting the COAP within a few business days and providing copies to all parties.

• Availability to discuss the COAP process and answer any questions at any point with the divorcing parties and/or their counsel.

• Any additional amended COAPs, if required by the Office of Personnel Management.

• Along with the final COAP to be signed and filed with the court, we will include a letter of instruction for submission of the certified court copy to the Office of Personnel Management for action/implementation.

We will also draft orders for other non-ERISA plans such as state retirement systems, railroad plans, Individual Retirement Accounts (IRAs and ROTH IRAs) and 457 Deferred Compensation plans. Please contact us for more information on orders for these types of plans.

Military Plans

Military plans allow for the division of military retirement benefits through the enactment of the Uniformed Services Spouse’s Protection Act (USFSPA) in 1982. Military plans have thresholds which need to be reached before disposable retired pay may be divided for an ex-spouse. Even if these conditions are met, no more than 50% of the retired pay will be considered a marital asset and no more than a total of 65% may be awarded for alimony or any combination thereof.

Toxby & Associates, Inc. charges a flat fee of $500 for each Military plan. This includes:

• Drafting the court order dividing retired pay within a few business days and providing copies to all parties.

• Availability to discuss the process and answer any questions at any point with the divorcing parties and/or their counsel.

• Any additional amended military orders, if required by the Defense Finance and Accounting Service.

• Along with the final court order to be signed and filed with the court, we will include a letter of instruction for submission of the certified court copy to the Defense Finance and Accounting Service for action/implementation as well as DD Form 2293 with a letter of instruction for the nonmember former spouse