Model Separation Agreement Language For Dividing Defined Benefit Plans Using A Marital Portion Approach (Page 2 of 3) in pdf

convert Plaintiff's benefits to one based on her lifetime should be applied to her share of the

benefits. In the event that the Plan does not permit the Plaintiff to receive his or her benefits in

the form of an actuarially equivalent life annuity based on his or her life expectancy, the form

of benefits payable to Plaintiff shall be based on the life expectancy of Defendant.

Additionally, the Defendant shall be required to elect his or her benefits in the form of a Joint

and Survivor Annuity in order to provide the Plaintiff with postretirement survivorship

protection.

Further, should any early commencement reduction be necessary in the event that the Plaintiff

commences his or her benefits prior to the Defendant's Normal Retirement Date under the

Plan, such reduction shall be applied to the Plaintiff's benefits in accordance with applicable

Plan provisions.

4. Early Retirement Subsidy: The Plaintiff shall be entitled to a pro rata share of any

employer‐provided early retirement subsidy provided to the Defendant on the date of his or

her retirement, and, in the event that the Plaintiff has already commenced his or her share of

the benefits on the date of the Defendant's retirement, the amounts payable to the Plaintiff

shall be increased in accordance with the Plan Administrator's practices and the Plan's

actuarial principles in order to provide the Plaintiff with the pro rata share of such early

retirement subsidy. Such pro rata share shall be calculated in the same manner as the

Plaintiff's share of defendant's retirement benefits is calculated pursuant to this Item 4.

5. Early Retirement Supplements: The Plaintiff shall be entitled to a pro rata share of any

early retirement supplements, interim supplements, or temporary benefits payable to the

Defendant. The Plaintiff's share of said benefit shall be calculated in the same manner as the

Plaintiff's share of the Defendant's retirement benefits is calculated pursuant to this Item 5.

6. Preretirement Survivorship Protection for Plaintiff: In order to secure the Plaintiff's

ownership right in the assigned portion of the Defendant's retirement benefits under the Plan

in the event that Defendant predeceases the Plaintiff and neither the Plaintiff nor the

Defendant has commenced her or his benefits under the Plan, such Plaintiff shall be

designated as the surviving spouse of the Defendant for purposes of establishing the Plaintiff's

entitlement to receipt of this monthly preretirement surviving spouse annuity, but only to the

extent of the lesser of (a) the amount that would have been payable to the Alternate Payee

under Section 7 had the Participant not died or (b) 100% of the pre‐retirement survivor annuity

that becomes payable under the Plan. In the event that the costs associated with providing this

preretirement death benefits coverage are not fully subsidized by Defendant's employer, the

Defendant must make an affirmative election for such preretirement surviving spouse

coverage in a timely manner and in accordance with his or employer's election procedures.

7. Tax Treatment of Distributions Made to Plaintiff under the Qualified Domestic Relations

Order: For purposes of Sections 401(a)(1) and 72 of the Internal Revenue Code, the Plaintiff

shall be treated as the distributee of any distribution or payments made to him or her under

the terms of the Qualified Domestic Relations Order (QDRO) and, as such, will be required to

pay the appropriate federal, state, and local income taxes on such distribution.

8. Inadvertent Payment(s) to Plan Participant: In the event that the Plan Trustee

Model Separation Agreement Language For Dividing Defined Benefit Plans Using A Marital Portion Approach Page 2