A MRPDO divides military members benefits. If the military member also has a Thrift Savings Plan account, a separate court order is required.
In December 2016, Congress amended the definition of Disposable Retired Pay to limit a MRPDO assignment to a variation of the frozen coverture method – even when the vast majority of states utilize the traditional coverture method (a.k.a. the time rule) to determine the marital portion of a participant’s pension benefit. Because of this and the restrictive rules regarding survivorship, and we highly recommend that you use our suggested separation agreement language to address these issues.