Justia Family Law Opinion Summaries

A former federal employee retired before age sixty-two and began receiving an annuity supplement under the Federal Employees’ Retirement System Act (FERS). Years earlier, a Colorado state court had issued a divorce decree awarding his ex-wife a pro rata share of his “gross monthly annuity” and any benefit earned from his special service, but the decree did not specifically mention the annuity supplement. For nearly thirty years, the Office of Personnel Management (OPM) only divided the annuity supplement between former spouses if a court order expressly required it. In 2016, OPM changed its policy, deciding that if a court order divided the basic annuity, the annuity supplement would also be divided in the same way, even if the order was silent on the supplement. OPM applied this new interpretation retroactively, resulting in a demand that the retiree pay his ex-wife nearly $25,000.The retiree challenged OPM’s decision before the Merit Systems Protection Board. The Board’s administrative judge found that OPM could only divide the annuity supplement if a court order expressly provided for such division. The Board affirmed this decision, rejecting OPM’s new interpretation. OPM then sought review from the United States Court of Appeals for the Federal Circuit.The United States Court of Appeals for the Federal Circuit held that, under 5 U.S.C. §§ 8421(c) and 8467(a), OPM may apportion a federal retiree’s annuity supplement to a former spouse only when a court order expressly provides for such division. The court reasoned that the statutory text, structure, and history require the annuity supplement to be treated in the same way as the basic annuity, which is only divided if expressly ordered by a court. The court affirmed the Board’s decision. View "OPM v. MOULTON " on Justia Law

General Jeffrey Bannister enlisted in the Army in 1979 and was married to Patricia Erickson from 1980 to 1996. As part of their divorce proceedings, General Bannister agreed to elect Ms. Erickson as his Survivor Benefit Plan (SBP) annuity beneficiary. In 1998, General Bannister married Trese Bannister. In 2017, he requested voluntary retirement, effective May 31, 2018, and elected Mrs. Bannister as his SBP annuity beneficiary. However, General Bannister died on May 27, 2018, before his retirement. Both Ms. Erickson and Mrs. Bannister submitted claims for the SBP annuity, and the Defense Finance and Accounting Service (DFAS) awarded it to Ms. Erickson based on the 1996 separation agreement.Mrs. Bannister appealed to the Defense Office of Hearings and Appeals (DOHA) and the Army Board for Correction of Military Records (ABCMR), both of which upheld the decision to award the annuity to Ms. Erickson. Mrs. Bannister then appealed to the United States Court of Federal Claims, which denied her motion and granted the government's motion, concluding that 10 U.S.C. § 1448(d)(3) precluded Mrs. Bannister from receiving the annuity.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that 10 U.S.C. § 1448(d) governs the entitlement to General Bannister’s SBP annuity because he died on active duty before retirement. The court determined that Mrs. Bannister is the correct beneficiary under § 1448(d)(1), which defaults to the surviving spouse. The court found that the exception under § 1448(d)(3) for a former spouse did not apply because Ms. Erickson failed to submit a timely written request for a deemed election as required by § 1450(f)(3). Consequently, the court reversed the decision of the Court of Federal Claims and remanded for a determination of the annuity benefits due to Mrs. Bannister. View "BANNISTER v. US " on Justia Law