Divorce is difficult for couples at both an emotional level as well as with future planning. Working with an experienced divorce attorney should provide the information needed for employees paying into the Minnesota PERA plan to understand how divorce impacts retirement benefits.
It is essential to review Minnesota PERA plan prior to filing for retirement. As this can be a complex area to understand, talking to an attorney in the state that is familiar with PERA retirement benefits can help to explain the impact of the divorce. There is also additional information on how to set up survivor options to ensure pre-retirement and retirement benefits are provided in compliance with the laws governing the program.
What to Know
The divorce decree or the court order around the dissolution of the marriage will indicate how the PERA benefits are divided. Depending on the language and how the property and assets were divided, the spouse may or may not be entitled to some portion of the benefits. It is essential not to make any assumptions, and to consider the importance of specific language to make sure any minor children of the marriage or any group of survivors can access benefits if the beneficiary (spouse), dies during the payment period.
Typically the divorce attorney works with the PERA language provided by the plan to include the necessary information. In the case this is not included, working with an attorney familiar with PERA retirement benefits is helpful.
The plan cannot determine the distribution of retirement benefits without a court order. However, if it is not included in the documentation, the ex-spouse may be able to obtain a temporary restraining order that would prevent the plan from distributing any benefits or refunds until the court hears the case.
If you have concerns about your PERA beneficiary or need assistance in determining if an ex-spouse may be eligible for benefits, talk to an experienced attorney familiar with the plan.
