An ex-spouse cannot collect benefits until the member retires and their pension payments have begun.

• If the member is in active State service, there is no minimum retirement age.
• If the member is NOT in active State service, federal rules for required minimum distributions apply at a certain age. (See the Internal Revenue Service website for the current required minimum distribution age.) At that age, they must retire.

If NYSLRS receives all required documents before the member’s retirement, payments to the ex-spouse will begin as of the member’s retirement date, unless otherwise specified in the DRO. It’s important to submit the required documents well before the member’s retirement date to avoid delays in payment to the ex-spouse.

If the member is already receiving a pension benefit at the time the final DRO is submitted, the ex-spouse’s payments will begin after we calculate their distribution.

For an ex-spouse to be entitled to a retroactive payment distribution, the DRO must:

• Clearly state that intent;
• Note the specific retroactive date; and
• Provide a repayment schedule for additional deductions to be taken from the member’s pension until the retroactive payment is complete.

Note: If a repayment schedule is not included, the DRO will be implemented without the retroactive payments unless the parties obtain an Amended Order with a repayment schedule.

Ex-spouses cannot obtain a cash payout of their portion of the pension benefit, and they are not permitted to roll over their monthly benefit into a tax-deferred retirement account (such as an IRA, 401K, 403b, etc.).

According to the Internal Revenue Code, equitable distribution payments to the ex-spouse are taxable. NYSLRS will issue a 1099-R form to the ex-spouse for taxable payments made during the prior calendar year.

Rev. 9/26