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DROPS


Guest gt2310
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I retired after 26 years in a Public Safety Retirement System and entered a Defered Retirement Option Plan, where an amount of money based on the same method of calculating my retirement is placed into an account while I remain on the job. The money earns 8.50% interest. I stay on the job and agree not to acrue any additional bennifits for 5 years. I married for the first time after 2 years in DROPS and after 1 year I am getting divorced. Is my wife entitled to any of the money in the DROPS account. My plan does not address this and I can't find any case law on this. I live in Arizona. I have another 14 months before I have to leave the job.

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Division of property in a marriage (what amount someone gets) is a matter of state law, which can take into account certain agreements between the individuals. Accessability to retirement benefits depends on procedures applicable to the retirement plan. Depending on the accessibility to the retirement plan to obtain what the spouse is supposed to get under the division of property, you may need, or you both may want, to adjust the division of property to skin the cat another way. You might check with the administrator of the DROPS account to see how divorce awards are handled. The procedures may be more or less formal and more or less detailed.

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