Pension Benefits Post Divorce

New Jersey Attorney Richard Scott Diamond provided an interesting analysis of pension benefits after a divorce. Mr. Diamond reviews a New Jersey Appellate Division ruling from 2014 as it relates to owing pensions to a divorced spouse. Mr. Diamond provides an intellectual understanding how the pension calculation can be revisited if the pensioner improves his/her salary from a better paying position. Mr. Diamond provides a brief explanation of the calculation

” For equitable distribution purposes in New Jersey, to divide a pension plan for equitable distribution purposes, most court orders / agreements use the “Marx Coverture formula analysis” to determine what amount of the monthly benefit in retirement is subject to equitable distribution and payable to the other spouse for his / her share of the benefit. Sounds complicated but its not.
The formula simply takes the years of the marriage (numerator) over the total years of the employees’ participation in the plan (denominator). So, if an employee was married for 14 years (while a participant in the plan) and employed by that plan (as of the time of retirement) for 25 years, the equation would be 14 years of marriage / 25 years of total employment in the plan or at the time of retirement, approximately 56% of the monthly benefit would be subject to equitable distribution and presumably the other spouse would be entitled to 50% of that 56% share of the monthly payment. “

To read the entire article, please visit: https://blogs.lawyers.com/attorney/divorce/division-of-pension-plan-benefits-when-employment-changes-post-divorce-61579/

If you have any additional questions as this may apply to your New Jersey Division of Pension Benefits pension, please email: info@sullivans.group.

CoronaVirus 403b Distributions

The Groom Law Group and Cammack Retirement Group provide useful information regarding distributions from your 403b as the result of Corona Virus. Their partners answer an important question if distributions can be taken during this special time. Please read their response:

Stacey Bradford, Kimberly Boberg, David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer:
COVID-19-related distributions will indeed be permitted for 403(b) and governmental 457(b) plans under the CARES Act legislation signed by President Donald Trump on March 27. The legislation allows retirement plans to permit distributions of up to $100,000 per individual per year (note, this is a total limit per individual, and NOT a per-plan limit) who can certify that they meet one of the following conditions:
Diagnosed with COVID-19
Spouse or dependent diagnosed with COVID-19
Experience adverse financial consequences as a result of being quarantined, furloughed, laid-off, reduced work hours, inability to work due to lack of child care because of COVID-19, the closing or reducing hours of a business owned or operated by the individual due to COVID-19, or other factors, as determined by the Treasury Secretary (which, as the Experts understand, will be quite flexible). “

457b plans may have a different distribution process and they explain the differences.

You can read the full article by clicking https://www.plansponsor.com/coronavirus-related-distributions-403b-governmental-457b-plans/