Your TRA pension and your marriage dissolution
Your TRA pension is a marital asset and may be subject to division. Because TRA is a public pension plan governed by Minnesota law, it is exempt from federal Qualified Domestic Relations Order (QDRO) requirements. Specific language is required for an order to be enforceable.
For members already receiving monthly payments, specific rules apply regarding the division of existing payments and plan changes.
To avoid the time and expense of correcting a rejected order, we strongly recommend submitting a draft version of your proposed language to TRA before it is signed by a judge.
Court orders and documentation
To process a division of benefits, TRA requires official documentation.
Divorce decree:
You must submit a certified copy of your divorce decree. Because you are already in payment status, the decree must clearly state how the current monthly benefit is to be divided. This is typically done as a fixed percentage of the monthly benefit.
Domestic relations order (DRO):
TRA does not require a separate DRO if the specific division language is included in your main decree. However, if your decree requires a separate DRO, you must submit certified copies of both.
Out-of-state orders:
TRA can only accept a decree from another state after it has been “domesticated” (filed) in a Minnesota district court.
Service of order:
TRA cannot divide your benefit and begin making payments to a former spouse until a certified copy of the court order has been officially delivered to TRA.
Important impacts on retirement plan selection
Unlike preretirement beneficiary or survivor options, the retirement plan you chose at the time of your retirement cannot be changed after divorce.
- Non-survivorship plans: If you selected the No Refund, Guaranteed Refund, or 15 Years Guaranteed plan at the time of your retirement, you may not change the plan type, but you may update your beneficiary designation for any benefits payable in the event of your death.
- Survivorship plans: If you selected the 50%, 75%, or 100% survivorship plan and named your spouse as the optional joint annuitant (OJA), that person remains your named survivor unless the court order specifically addresses the “revocation” of that status and the “reversion” of your benefit to a single-life amount (i.e. No Refund plan).
Revocation of an optional annuity
If you selected a survivorship plan and named your former spouse as your sole OJA, a marriage dissolution decree may be used to revoke your designation. By revoking an OJA, you would receive a higher single life annuity payment going forward. However, you would not be able to designate a new OJA to receive benefits in the event of your death.
To revoke your OJA designation
- You must provide a certified copy of the decree that specifies that your designation of an optional annuity must be revoked.
- You and your former spouse must complete a TRA form requesting revocation and for the annuity to “bounce back” to a single life annuity.
Legal guidance for counsel
The information below is designed to help you and your legal counsel draft an order that complies with Minnesota Statutes, sections 518.58, 518.581, and 518.582, as well as the TRA retirement laws found in chapters 354 and 356.
Disclaimer
TRA staff members provide administrative assistance but do not provide legal advice regarding marriage dissolution. It is the member’s responsibility to seek private legal counsel. TRA’s primary responsibility is to ensure the pension plan remains in compliance with Minnesota Statutes, chapters 354 and 356, and does not exceed the total benefit amount permitted by law. Only a court with proper jurisdiction may provide a final interpretation of a dissolution decree.
Contact us
For detailed information regarding your specific circumstances, contact TRA.
