Practice Test Geeks(CDA) Certified Divorce Advisor Practice Test
← All CDA Flashcard Decks

Retirement & Pension Division Flashcards

7 cards from real CDA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Retirement & Pension Division flashcards as text

  1. Military retirement benefits divided in divorce are governed by which federal law?

    Answer: Uniformed Services Former Spouses' Protection Act (USFSPA)

    The USFSPA authorizes state courts to treat military retired pay as property subject to division and allows direct pay to former spouses through DFAS.

  2. Under the USFSPA, the 10/10 rule means:

    Answer: At least 10 years of marriage must overlap with 10 years of military service for direct DFAS payment

    The 10/10 rule requires at least 10 years of marriage overlapping with 10 years of creditable military service for the former spouse to receive direct payment from DFAS.

  3. Federal civilian employee retirement benefits under FERS or CSRS are divided using which document instead of a QDRO?

    Answer: Court Order Acceptable for Processing (COAP)

    Federal civilian retirement plans (FERS/CSRS) use a Court Order Acceptable for Processing (COAP), not a QDRO, which is reserved for ERISA plans.

  4. When a spouse has a pension with an early retirement subsidy, the CDA should advise that the QDRO:

    Answer: Must explicitly address whether the alternate payee shares in the subsidy

    Early retirement subsidies are not automatically shared; the QDRO must specifically address whether the alternate payee participates in any enhanced early retirement benefit.

  5. A spouse who is the alternate payee under a QDRO can avoid the 10% early withdrawal penalty if they:

    Answer: Take a direct distribution from the qualified plan without rolling it over

    Under IRC §72(t)(2)(C), the 10% early withdrawal penalty does not apply to distributions from a qualified plan made to an alternate payee under a QDRO.

  6. In the context of divorce, 'pension present value' refers to:

    Answer: The lump sum today that is actuarially equivalent to the future stream of pension payments

    Present value of a pension is the discounted current lump sum equivalent of all future expected pension payments, calculated using actuarial assumptions.

  7. Which interest rate assumption most significantly affects the present value calculation of a defined benefit pension?

    Answer: Discount (interest) rate

    The discount rate is the most sensitive variable; a lower discount rate produces a higher present value, and a higher rate produces a lower present value.