Divorce can bring a lot of financial questions, including questions about your retirement benefit. As a LAGERS member, it is important to understand what LAGERS can and cannot do when a benefit is involved in divorce proceedings.
Because every case is different, family court plays an important role in determining whether a LAGERS benefit may be treated as a marital asset. This can apply whether you are already retired and receiving a monthly benefit, or you are still actively working and have not yet retired. Here are answers to some common questions.
Is a LAGERS monthly benefit divisible as a marital asset?
Currently, there is no Missouri statute addressing whether a LAGERS monthly payment is divisible as a marital asset. That determination is made by the family court in each case.
Can an ex-spouse receive a monthly payment directly from LAGERS?
Under applicable law, including Missouri state statute RSMo 70.695, a LAGERS accrued benefit is not subject to garnishment, attachment, execution or bankruptcy proceedings. This means LAGERS is also not subject to Qualified Domestic Relations Orders (QDROs).
If you get divorced and a family court determines that your benefit is divisible as a marital asset, it will be your responsibility to forward the portion determined by the family court to your former spouse. LAGERS will only make benefit payments directly to you, not to your former spouse. The only exception would be if your monthly benefit payment is subject to child support deductions as ordered by a court.
Your former spouse cannot begin receiving their portion until you begin drawing your monthly benefit.
How is the value of a LAGERS benefit determined?
LAGERS benefits are not based on an account balance. Instead, they are based you’re your earned wages and the time you have worked for a LAGERS-covered employer.
The amount your ex-spouse is eligible to receive is determined by a family court and could be a dollar amount, percentage, or some other figure.
Although LAGERS cannot provide a present value calculation, we can provide a benefit estimate or Member Annual Statement* showing your estimated monthly benefit amount. This information may help you or the court determine the value of your benefit.
*A benefit estimate or Member Annual Statement is only available for LAGERS members or through a court order. Your ex-spouse cannot request your benefit estimate or Member Annual Statement.
What happens if I retire and elect a spousal retirement payment option, and then I get a divorce?
When you select a payment option for retirement, the selected payment option is permanent cannot be changed.
If you retire, your spouse under Option A or B will always remain the beneficiary, even if you get a divorce. If you retire and choose Option A or B, but then divorce and remarry, your ex-spouse will still be the beneficiary under Option A or B.
Unlike Option A or B, Option C allows you to change the beneficiary throughout retirement.
Do I need to submit any forms to LAGERS after the divorce is final?
LAGERS does not require that you submit any forms.
Do I need to update my beneficiaries after the divorce is final?
It is not a requirement to update your beneficiaries, but it is strongly recommended that you do.
You can change your beneficiaries at any time by downloading the Change of Beneficiary form from the LAGERS website and sending it to the LAGERS office by fax at 573-636-9671, by mail to 701 W. Main St., Jefferson City, MO 65101, or by using the myLAGERS web portal.
