Since the benefit is computed based on net salary, a tax supplement will be payable to the recipient of the benefit, if it is taxable.

Transcription

1 World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Plan Benefit (For Participants Joining the Plan On or After April 15, 1998) The World Bank Staff Retirement Plan ("Plan") defines the circumstances under which all or a portion of a lump sum benefit or a monthly pension benefit from the Plan may be directed to a former or legally separated spouse ( former spouse ). The normal QUADRO rules under U.S. law do not apply. Summary of Plan Benefits A participant who ceases Plan participation with fewer than 10 years of service is paid his/her entire benefit in a lump sum payment except if the participant (i) has at least five years of plan service, (ii) the participant s age plus years of service equals or exceeds 60, and (iii) such a participant elects to receive a pension rather a lump sum benefit. A participant who ceases Plan participation with 10 years or more of Plan service, or a participant who elects a pension in lieu of a lump sum (see previous paragraph), will be entitled to receive a lifetime pension commencing on or after age 50, as well as a lump sum payment of the Plan s cash balance benefit. The cash balance benefit may be converted into an annuity to supplement the pension, as the Participant may elect upon retirement. If the Participant dies in service or after termination of service but prior to effective date of pension payment, a lump sum benefit will be payable. If the participant is married on the date of death, the death benefit would be payable to the spouse, unless such spouse consented to the designation of another beneficiary. If the deceased participant is single, the lump sum death benefit would be payable to the designated beneficiary. If a participant retires and then dies after commencing a pension, either a lump sum death benefit or a survivor annuity will be payable. If the retiree was married when his or her pension commenced the survivor benefit will be payable as an annuity to such spouse, unless such spouse consented to the designation of an alternate beneficiary and/or form of benefit. If the retiree is single when the pension commences, the retiree may designate a beneficiary to receive either a lump sum or a survivor annuity. Since the benefit is computed based on net salary, a tax supplement will be payable to the recipient of the benefit, if it is taxable. Orders for Spousal Support To effectuate payments to a former spouse, the following requirements must be satisfied. : (1) The Participant, or the spouse, or both, must obtain a final order or a decree from a court of competent jurisdiction directing the Participant to pay support to the legally separated or the former spouse. The order or decree must contain:

2 (a) (b) (c) (d) (e) (f) Order of Spousal Support - a statement that the Participant is ordered to provide support arising from a marital relationship to a former or a legally separated spouse. Only orders of spousal support or alimony are recognized by the Plan Administrator. Amount of Support - a statement of the amount to be paid from the Participant's pension benefits to a former or legally separated spouse. The amount can be expressed as a sum certain, a percentage, or a fraction to be paid from a lump sum or periodic pension payment, as the case may be. The amount also may be designated with a formula or an equation, but the Plan Administrator must be provided with sufficient information to permit all of the necessary calculations. If the amount of spousal support is expressed as a fraction, the order should express the numerator, the denominator, or both, as a number if the number can be determined when the order is entered. Since the plan s benefits are based on number of days of service, formulas or fractions should be framed in terms of days of service, rather than months or years, whenever possible. Days of service are determined based on elapsed calendar days during a period of service. For example, someone who commences service on January 1, 2005 and ceases service on December 31, 2005 has 365 days of service. Cost of Living Increases In the event that a pension is payable, the order may provide that the amount of the directed payment shall be constant or alternatively, that any cost of living increase shall be divided pro rata between the retiree and the former or separated spouse.. Survivor Benefits - If an Order contains a provision requiring a Participant to designate the former spouse or another individual as beneficiary of the survivor benefit, the Plan will not enforce the provision. Instead, the Plan will look only to the latest effective beneficiary designation and/or election submitted by the Participant, subject to applicable spousal consent requirements (see description of death benefits above). The spouse may bring an action against the Participant in a court of competent jurisdiction for failure to take the action required under the Order, but shall have no claim against the Plan. Payment Information - name, address, and social security number (if applicable) of the former or legally separated spouse, and the currency in which the payment is to be made. Currency of Payment - Payments to a former spouse or legally separated spouse may be paid in U.S. dollars or another currency under the terms of the Plan. Lump sum payments may be paid in U.S. dollars, or another currency elected in advance by the former or separated spouse converted at the applicable spot exchange rate at the time of payment. Portions of pensions or annuities payable to a former spouse or legally separated spouse will be paid in the same currency as the retiree s pension or converted to another currency at the spot rate, as elected in advance by the former spouse or legally separated spouse.

3 (2) A certified copy of the final court order must be submitted to the Plan Administrator, preferably with a signed acknowledgement of the Plan Participant confirming the validity and finality of the order. (An acknowledgement form can be obtained from the Pension Administration Unit). If you would like the Plan to review a draft order, you can send the draft by with copies to both spouses (or their representatives) to Ms. Sharada Sundar at SSundar@WorldBank.org, or by fax to (202) , or by mail to Pension Administration Division, MSN C7-702, The World Bank, 1818 H Street, NW, Washington, DC (3) Where the World Bank receives a court order from a party other than the Plan Participant, or without an acknowledgement signed by the Participant, payments will not be made to the former spouse or a legally separated spouse within 60 days after receipt of the order by the Benefits Administrator. During the 60 days, the World Bank will notify the Participant of the order that payments to the former spouse or legally separated spouse will commence on a specific date, unless the Participant submits objections before that date. If the Participant submits the order or signs an acknowledgement, payment to the former spouse or legally separated spouse will commence as soon as practicable. (4) Payments may be directed to a former or separated spouse only when benefits are payable to the participant upon retirement under the Plan. Once the payments pursuant to a court order commence, they will not be stopped or reduced unless the Participant demonstrates to the Bank's satisfaction that the underlying obligation to pay the spousal support has terminated or has been reduced. However, payments of a portion of a Participant s pension will cease upon the death of either the Participant or the former or separated spouse to whom payment is directed. (5) The taxable amount of payments made to former spouses or legally separated spouses who are citizens or permanent residents of the U.S. will be reported to the U.S. Internal Revenue Service on an appropriate tax form. The nontaxable portion of the pension benefits will be allocated pro rata between the participant and the spouse. (6) An order may require the participant to provide the former or separated spouse access to information concerning the amount and payment status of a participant s benefit and the identity of designated beneficiary. The Bank will provide such information directly where the participant fails to abide by the terms of such an order requiring provision of information or where the participant consents. Spousal Support Orders That Will Not Be Accepted and/or Given Effect The order or decree should be designated as spousal support and not the division of property, even though some jurisdictions treat pension benefits as property. The Plan will not accept court orders that purport to divide lump sum or monthly pension benefit as part of marital or community property, or convey an interest in the Plan or a benefit payable under the Plan to a former spouse or a legally separated spouse. The order cannot change the form or time of payment. Again, payments may be directed only when otherwise payable to the Plan Participant, and will cease upon the death of the Plan Participant or the former or separated spouse.

4 The Plan will not accept court orders that purport to permit a former spouse or legally separated spouse to make benefit selections under the Plan. Court orders which direct the World Bank or the Plan (instead of the Participant) to make payments will also be rejected. Payments will be made by the Plan only to the former or legally separated spouse, and may not be assigned or pledged. The Plan will not make payments to assignees, mortgagees, pledgees or heirs. The Plan Administrator will not recognize orders that require loan, mortgage, settlement, child support, or other payments to a former or legally separated spouse from the Participant's pension benefits. The Plan and the World Bank will follow the Participant s election as to form of the death benefits and designation of beneficiary. However, the Plan will not follow and/or give effect to portions of any order that directs the Plan Participant to designate his former spouse as a beneficiary of disability benefits, of the lump sum death benefit, or of life insurance benefits. Likewise, the Plan will not follow and/or give automatic effect to portions of any order requiring a Plan Participant to elect to convert a cash balance benefit into an annuity, commence an early retirement pension, designate a particular beneficiary, or elect the form of the survivor benefit. If the Participant fails to comply with such provisions in a spousal support order, the former spouse may seek enforcement through the court(s) of competent jurisdiction.

5 Jane/John Doe Plaintiff vs. John/Jane Doe Defendant Case No. SAMPLE ORDER FOR SPOUSAL SUPPORT Staff Retirement Plan WHEREAS, John/Jane Doe, Defendant in the above-captioned proceeding, has a right to receive retirement benefits earned by him/her during the parties' marriage; and WHEREAS, the Defendant is under a legal obligation arising out of the marital relationship to provide support for the Plaintiff; [and WHEREAS, the parties hereto have agreed to certain provisions for that support in a Voluntary Separation and Property Settlement Agreement dated, which is Incorporated into the decree of divorce dated.] NOW THEREFORE, it is this day of 199_; ORDERED, that Plaintiff Jane/John Doe shall receive support payments from the Defendant's pension benefits as follows: 1. Plan Identification. John/Jane Doe is a participant (hereinafter "The Participant") in the following retirement plan (hereinafter "The Plan"): Staff Retirement Plan of the International Bank for Reconstruction and Development 1818 H Street NW Washington, D.C Identification of Participant and Former/Separated Spouse. The Participant,, currently resides at [address]. Participant is a citizen of, was born on, and his/her Social Security Number

6 is. His/her plan entry date, for purposes of calculating plan benefits, is [date]. The Former Spouse is, and she currently resides at [address]. The Former Spouse is a citizen of was born on, and his/her Social Security Number is The Former Spouse and the Participant were married on, and were divorced by an order of the Circuit Court for on. 3. Payment to Former Spouse. The Participant is hereby ordered to pay to the Former Spouse the amount specified in paragraph 4 below, as spousal support, from Participant's [lump sum and/or monthly benefit] from the Plan at retirement. 4. Amount and Timing of Payment to Former Spouse. A. Pension Benefits. The Participant is hereby ordered to direct the Plan to pay to the Former Spouse [$ per month from his/her] or [ % of his/her] 1 monthly benefit from the Plan. Such payments shall commence effective [the later of Date or the date on which payment of Participant s monthly benefit from the Plan commences] Payments shall continue until the death of either the Participant or the former Spouse [or, if earlier, until (a Date certain)]. Annual cost of living increases to the Participant s monthly pension benefit [shall be applied pro rata to] OR [shall not] increase the amount payable to the former spouse. B. Lump Sum Benefits. In the event that Participant receives all or a portion of the Plan benefit in a lump sum, Former Spouse shall receive [$ from his/her] OR [ % of his/her] 2 of Participant's lump sum benefit when payable under the terms of the Plan. 1 So long as the order frames the obligation in terms of spousal support rather than a division of marital property, the percentage of the Former Spouse s share may be expressed in terms of a fraction, such as 50% of the days of marriage during Plan service divided by the total number of days of Plan service. (Plan service during a period of participation is measured in terms of the number of calendar days that elapse from commencement of service to cessation of service.) 2 See Footnote 1.

7 [OPTIONAL] 5. Plan Information: The Participant/Retiree shall direct the Plan s Benefit Administrator to provide Former Spouse, upon his/her request, information concerning the amount of his/her Plan Benefit, and when he/she will be eligible to retire under the Plan, and the identity of beneficiaries of the Plan s Death Benefit, and Participant shall consent to the provision of such information by the Plan directly to the Former Spouse. 6. Limitations: (a) Nothing herein may be construed as a waiver of the privileges and Immunities enjoyed by the World Bank and/or its Staff Retirement Plan; (b) Further, this Order does not require the Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan; (c) Nor shall this Order be deemed to create any rights, benefits or obligations not provided for in the Plan; (d) Nothing in this Order shall impose any fiduciary obligation on the Plan to the Former Spouse, nor be construed as a designation of the Former Spouse as a beneficiary of any death benefit of the Plan, nor shall the Plan make any payments to any assigns, mortgagee or pledges of either party; and (e) Nothing in this Order shall be deemed to direct or effect any transfer of assets from the Participant or from the Plan to the Former Spouse, nor shall this Order be deemed to divide any property rights of the parties. 7. Continuing Jurisdiction. [Names of Participant and Former Spouse] having agreed thereto, this Court retains jurisdiction to make such modification as it determines may be necessary to have this Order accepted by the Plan.

8 8. Applicable Law. This Order is issued incident to the Decree of Absolute Divorce and pursuant to the authority of the domestic relations law of the state of [Virginia\Maryland\D.C.]. This is a proper order to be signed, Domestic Relations Master WE CONSENT TO THIS ORDER: Jane/Jon Doe, Plaintiff Attorney for Plaintiff Judge, Circuit Court for John/Jane Doe, Defendant Attorney for Defendant

9 THE WORLD BANK/IFC/M.I.G.A. OFFICE MEMORANDUM DATE: TO: Plan Administrator, Staff Retirement Plan FROM: EXTENSION: SUBJECT: Acknowledgement of Legal Obligation to Pay Spousal Support (Net Plan) Pursuant to Section 5A.2(c) of the Staff Retirement Plan, I hereby acknowledge that I am under a legal obligation to provide Spousal Support to my former spouse or legally separated spouse. This obligation is evidenced and/or imposed by the attached certified order of a court of competent jurisdiction. If, as and when my benefits become payable, I acknowledge that $ [or %] of the benefit payable to me under Articles 3A and 4A of the Staff Retirement Plan shall be paid directly to who is my former spouse or legally separated spouse to whom I have a legal obligation of support arising from the marital relationship. [Signature]