Redeposits After a Domestic Relations Order


If you are required to divide accumulated service credit due to a divorce or domestic partnership dissolution court-ordered settlement, you may be able to purchase the service credit awarded your ex-spouse or registered domestic partner, with a redeposit.

Since separate accounts are created for both individuals, redepositing contributions and interest may be possible for both member and/or non-member (former spouse/domestic partner) in order to restore each account to pre-DRO levels, under very specific circumstances.

For example, non-members may only redeposit contributions and interest previously refunded to the member, and considered community property.

Active members may redeposit contributions and interest forfeited to the non-member, only if the non-member takes a refund. The active member must redeposit the funds within five years of notification that a refund was taken, and no later than 120 days after retirement.

If a non-member takes a refund of “court awarded” contributions and interest, the non-member permanently relinquishes all rights to any retirement benefits, potential redeposits, or service credit purchases.

Each dissolution is different, so be sure to speak with a retirement counselor to verify your options.