When diving into the complexities of divorce involving employee benefits in California, attorneys need to carefully assess the type and nature of pension and retirement plans for both the plan participant (employee spouse) and the nonparticipant (nonemployee spouse). It's crucial to evaluate whether joinder of an employee benefit plan is necessary early in the process, as this decision can influence how effectively the plan will adhere to court orders.

ERISA-Governed Plans

Federal law mandates that ERISA-governed plans must honor a Qualified Domestic Relations Order ("QDRO") that meets specific requirements, regardless of whether the plan is joined to the divorce proceedings (29 U.S.C. § 1056(d)(3)). However, if a domestic relations order doesn’t qualify as a QDRO, the plan isn't obligated to comply, even if joined. Joinder can provide the court with the authority to issue direct orders against a plan, such as restraining changes to benefits or awarding attorney fees in some cases. Additionally, joinder can help uncover critical issues related to unique benefits and the conditions for receiving them.

California Government Plans

For California government plans, such as CalPERS and CalSTRS, joinder is generally required to enforce orders against the plan (Fam. Code, § 2060(b)). These plans typically cooperate with such requests. Similarly, city and municipal plans in California usually require joinder and will work with attorneys to address benefits division.

Federal Government Plans

Federal plans, including FERS, CSRS, and various military retirement plans, are not subject to joinder in state domestic relations proceedings due to federal jurisdiction. These plans typically reject joinder attempts and follow their own federal procedures. Attorneys must therefore provide notice of adverse interest and comply with federal statutes and regulations for these plans (Fam. Code, § 755).

Need Assistance?

Navigating the intricacies of employee benefit divisions in a divorce can be challenging. At M.C. Law, we are here to guide you through the process and ensure that your rights and interests are fully protected. If you have questions or need expert advice on handling employee benefits in your divorce, don’t hesitate to contact us!