CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
 
  
 
 
Accrued retirement benefits are considered community property in California.
 
Therefore, if you divorce or dissolve a registered domestic partnership, your benefit may be divided between you and your former spouse/partner, depending on the specific community property settlement agreed upon in your dissolution.
By neccessity, CCCERA must be "joined" (become a part of your legal action) to process your account appropriately. This "joinder" allows CCCERA to comply with the details of your settlement agreement as they apply to your retirement account.
This court ordered agreement is called a Domestic Relations Order (DRO).
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The 1937 Act allows an active member's account to be divided into two separate and distinct accounts at time of dissolution. The Court is prohibited from imposing a DRO that pays benefits with a total value that exceeds the amount the member would have received if the order had not been issued. After the account split, the active member and non-member (former spouse/domestic partner) have rights to manage their individual accounts going forward. They also have certain rules of law to follow.
After account split, each person (active member and non-member) has sole control over his or her own account. Unless specifically provided by the Domestic Relations Order, or other 1937 Act mandated notifications, individual account activity is confidential. A required notification, for example, would be if the non-member takes a lump sum payment, which creates an opportunity for the active member to "purchase" forfeited service credit, or if the active member retires before the non-member. It is important to discuss split account details with a CCCERA counselor in order to understand the process and the results. CCCERA also strongly suggests consulting with an attorney.
Vested Members will not lose "vested status" (retirement service credit of 5 or more years of service), even if service credit is awarded to a former spouse/domestic partner. Once vested status is achieved, it cannot be lost, except through payment of a refund to the member.
Below are some examples of how account splitting during divorce or partnership dissolution may affect active members and former spouse/registered domestic partners:
VESTED MEMBER (5 OR MORE YEARS OF RETIREMENT SERVICE CREDIT)
Active Member Non-Member
Account is split according to DRO. May name new beneficiary.
Service Credit and contributions are divided according to DRO. May maintain new separate account.
Member may choose new beneficiary. Interest will be credited to new account.
If spouse/partner takes a refund, member has 5 years to "purchase" service credits forfeited to former spouse/partner. May later receive service retirement benefit, if member is vested at time of dissolution.
Vested status is not lost. May request a refund, closing account permanently.

NON VESTED MEMBER (LESS THAN 5 YEARS OF RETIREMENT SERVICE CREDIT)

Active Member Non-Member
Account is split according to DRO. Must take a refund on contributions and interest.
Service credit and contributions divided according to DRO. After refund, all rights to future benefits waived.
Member may choose new beneficiary. No redeposit allowed.
Member has 5 years after refund date to "purchase" service credits forfeited to former spouse/partner in DRO. Refund may not be canceled.
VESTED MEMBER SERVICE PURCHASES
Active Member Non-Member
If specified by DRO, member may purchase forfeited community property share. If specified by DRO, non-member is eligible to purchase his/her community property share.
If DRO is silent, member is eligible to purchase entire service amount. If DRO is silent, non-member may not purchase any service.
Installment payments allowed. Must pay by lump sum only.
May purchase former spouse/partner's share if non-member receives a refund, or dies. No purchase allowed if former spouse is paid a refund.
VESTED MEMBER REDEPOSITS OF ACCOUNTS WHICH WERE WITHDRAWN BEFORE DRO
Active Member Non-Member
If specified by DRO, member is eligible to purchase community property share. If specified in DRO, non-member is eligible to purchase his/her community property share.
If DRO is silent, member is eligible to purchase entire service amount. If DRO is silent, non-member may not purchase any service.
Installment payments allowed. Must pay by lump sum only.
May purchase former spouse/partner's share if non-member receives a refund or dies. All eligible service must be purchased.
VESTED MEMBER REDEPOSITS OF ACCOUNTS WHICH WERE WITHDRAWN AFTER DRO
Active Member Non-Member
Member has same redeposit rights as before. May not redeposit his/her account once withdrawn.
May redeposit non-member's share within 5 years of spouse/partner's notice of withdrawal. May not redeposit account withdrawn by member.
VESTED MEMBER TERMINATES MEMBERSHIP (LEAVES CCCERA EMPLOYER)
Active Member Non-Member
May elect refund or defer account. Final Average Salary (FAS) is frozen at termination, unless member becomes reciprocal with another public agency.
Same choices as member, including FAS salary frozen at termination.
NON-VESTED MEMBER TERMINATES MEMBERSHIP (LEAVES CCCERA EMPLOYER)
Active Member Non-Member
May elect refund or defer. Same rules as above for reciprocity. Must take a refund.
DRO ACCOUNT SPLITTING AND RETIREMENT
Active Member Non-Member
Service credit requirement is met using combined service before account split plus any service earned after split. Eligible at earlier of 1) member's eligiblity due to age, or 2) non-member's eligiblity due to age.
Benefit is based on service credit, plus any service purchased after account split, FAS and member's age factor. If member retires prior to non-member, non-member may elect to to leave account intact. FAS calculation is frozen at value used for member.
May choose any optional payout available. Non-member may elect to begin receiving retirement benefit using service credits from account split, plus any purchased service credits. FAS based on member's salary at time of non-member's retirement. Age factor is non-member's, at time of retirement.
  If non-member retires before member, FAS computed as of the date non-member retires.
  May select any optional payout available.
  • The 1937 Act requires a member's beneficiary to be their spouse/registered domestic partner, unless a Spousal/Domestic Partner Waiver form is signed and on file with CCCERA. After your account split, each person may name a new beneficiary, other than your spouse/domestic partner. If your dissolution results in your choice of a new beneficiary, be sure to change this information with CCCERA.
  • FOR CLARIFICATION: Divorced/"partnership dissolved" non-members are also called alternate payees.
  • IMPORTANT NOTE: The information on this page only applies to Active Members. If you become divorced, or your partnership is dissolved after retirement, the options are different.