CDA Retirement & Pension Division 3

Question 1

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

Accepted Answer

Uniformed Services Former Spouses' Protection Act (USFSPA)

Answer

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

Question 2

Under the USFSPA, the 10/10 rule means:

Accepted Answer

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

Answer

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.

Question 3

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

Accepted Answer

Court Order Acceptable for Processing (COAP)

Answer

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

Question 4

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

Accepted Answer

Must explicitly address whether the alternate payee shares in the subsidy

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(CDA) Certified Divorce Advisor Practice Test

(CDA) Certified Divorce Advisor Practice Test

CDA Retirement & Pension Division 3