Eldridge Bay Retirement System

Domestic Relations Orders

Domestic Relations Orders

When a Massachusetts public employee or retiree divorces or legally separates, the family court may divide the value of the pension between the spouses as part of the property settlement. The mechanism is a Domestic Relations Order (DRO) under MGL Chapter 32 § 19.

A Massachusetts public-pension DRO is similar in concept to a federal QDRO (Qualified Domestic Relations Order) but follows MGL Chapter 32 procedures, not ERISA — Massachusetts public retirement systems are not ERISA plans.

What a DRO can and cannot do

A DRO can:

  • Award a former spouse a portion of your retirement allowance when you retire — payable directly to them by the board.
  • Determine the formula for dividing the benefit (e.g., a percentage of marital-period accruals, a fixed dollar amount, a coverture-fraction approach).
  • Designate a former spouse as a survivor beneficiary in some circumstances.

A DRO cannot:

  • Force the member to retire earlier or later than they otherwise would.
  • Award more than the member's actual benefit.
  • Award benefits the system doesn't provide (e.g., a lump-sum cash-out when no such option exists).
  • Bind the system in ways inconsistent with MGL Chapter 32.

Acceptable order language

The board cannot honor a DRO until the order is reviewed and accepted as conforming to Chapter 32. Some courts and family-law attorneys are familiar with the specific language Massachusetts retirement boards require; others are not. Common issues that cause an order to be rejected:

  • Demanding immediate payment of a portion of contributions before the member retires (Massachusetts plans generally don't allow that — the alternate payee waits until the member retires).
  • Demanding survivor benefits the member's chosen retirement option doesn't provide.
  • Ambiguous allocation formulas that can't be operationalized at retirement.

We strongly recommend that the attorney drafting the DRO contact the board in advance, before the order is presented to the court, to confirm the language will be accepted. A 30-minute phone call up front saves months of back-and-forth later.

What to provide the board

To process a DRO, the board needs:

  1. A certified copy of the final judgment of divorce or separation.
  2. A certified copy of the DRO itself (not a draft).
  3. Contact information for the alternate payee (the former spouse) — including address, phone, and tax-reporting information.
  4. Tax forms for the alternate payee (the board issues a separate 1099-R to them once payments begin).

When DRO payments begin

DRO payments to the alternate payee generally begin when the member retires and starts receiving their own benefit — not before. (A few specific exceptions exist; the order must be drafted to take advantage of them.)

If the member dies before retirement, the DRO's effect on a surviving spouse / death benefits depends entirely on what the order says. This is the area where ambiguous DROs cause the most pain. Get this right at drafting time.

Member's retirement option after a DRO

A DRO may require the member to elect a specific retirement option (often Option C with the former spouse named as beneficiary, in whole or in part). The DRO controls; the member's election at retirement must conform to it. If your DRO is silent on the option election, you can choose freely — but be aware that some option choices may inadvertently zero out the alternate payee's share.

The process at a glance

  1. Divorcing parties (and their attorneys) negotiate the pension division.
  2. Counsel drafts a DRO that conforms to MGL Chapter 32 — ideally with the board's pre-review.
  3. The court issues the final order.
  4. A certified copy is delivered to the board.
  5. The board reviews and accepts (or rejects with reasons).
  6. Once accepted, the order is honored at the member's retirement.

Resources

  • MGL Chapter 32 § 19
  • PERAC's guidance on domestic relations orders (request from PERAC if needed)
  • Family-law attorneys experienced with Massachusetts public retirement (the board cannot recommend specific attorneys but can confirm whether a particular drafter is familiar with our procedures)