World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Pension (for Participants Joining the Plan Before April 15, 1998) The World Bank Staff Retirement Plan ("Plan") defines the circumstances under which all or a portion of a normal retirement benefit, early retirement benefit, reduced early retirement benefit, withdrawal benefit, commuted lump sum payment, and cost-of-living adjustments from the Plan may be directed to a former or legally separated spouse. The normal QUADRO rules under U.S. law do not apply. To effectuate such payments, the Participant, and the spouse must meet the following requirements: (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: (a) (b) (c) 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 each periodic pension payment and/or from a commuted lump sum, or withdrawal payment. 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 calculated when the order is entered. Since the plan s benefits are based on number of days of service, formulas or fractions should, whenever possible, be framed in terms of days of service, rather than months or years of service. Days of service are based on elapsed calendar days. 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 - 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.. 1
(d)survivor Benefits - The Plan provides an automatic lifetime survivor s annuity to the spouse married to the retiree on both the last day of participation and the date of death. If there is no eligible surviving spouse, the Plan provides a lump sum benefit. The order may require that the Participant name the former spouse as recipient of the Plan s lump sum death benefit, if any. (e) The order may also require that the Participant elect an optional survivor annuity for the former spouse. The optional survivor annuity may be elected before retirement, or within 180 days after a final divorce decree is either entered or becomes effective. To pay for the optional survivor annuity, the lifetime pension is reduced by an amount determined under the Plan. An order can specify whether the costs of the optional annuity will be deducted from the portion of the pension payable to the retiree, the portion payable to the spouse, or both. A provision in an order requiring the Participant to elect a survivor annuity or to designate a former spouse as beneficiary is not self-executing, as the participant must submit the necessary forms to the Plan before an election or designation becomes effective. Payment Information and Currency The Order should specify the 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. Payments of the lump sum commuted pension will be made only in United States dollars. Payments from normal, early, or reduced early pensions will be paid in a single currency of the country specified in the court order. Where a court order does not specify the currency in which payments from normal, early, or reduced early pensions will be paid, the payments will be made in the currency of the country where the Participant resides or United States dollars. (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 email with a copy to both spouses (or their representatives to Mr. Kerry Mack at KMack@worldbank.org, or by fax to (202) 522 172, or by mail to Pension Administration Division, MSN MC7-710, The World Bank, 1818 H Street, NW, Washington, DC 20433. (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 the approval of the order. During the 60 days, the World Bank will notify the Participant of the order and 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 (a form acknowledgement is attached), payment to the former spouse or legally separated spouse will commence as soon as practicable. 2
(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 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 a Form 1099R. The nontaxable portion of the pension will be allocated pro rata between the retiree 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 the pension benefits 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. 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 beneficiary designations and any optional survivor annuity election submitted by the Participant in the event of the Participant s death. 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 effect to portions of any order requiring a Plan Participant to elect a commutation, early retirement pension, withdrawal benefit, or optional survivor annuity. If the Participant fails to comply with 3
such provisions in a spousal support order, the former spouse may seek enforcement through the court(s) of competent jurisdiction. In cases where the court order or direction to pay is ambiguous or in dispute, the World Bank will not interpret the questionable provisions. Rather, payments to the former or legally separated spouse will be suspended until the ambiguity or the dispute is resolved by the parties.[generic SPOUSAL SUPORT ORDER]IN THE CIRCUIT COURT FOR Jane/John Doe 4
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Plaintiff vs. John/Jane Doe Defendant Case No. 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. 20433 2. 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 is 6
. 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 123-45-6789. 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 monthly benefit from the Plan at retirement. 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)]. 4. Amount of Payment to Former Spouse. The Participant is hereby ordered to pay to the Former Spouse [$ per month from his/her] or [ % of his/her] 1 monthly benefit from the Plan. [OPTIONAL] (a) Commuted Benefit. In the event at retirement Participant elects a commuted pension amount, Former Spouse shall also receive [$ from his/her] or [ % of his/her] 2 of Participant's commuted benefit when payable under the terms of the Plan. [OPTIONAL] (b) Cost of Living Increases. Cost of Living Increases to the Participant s monthly pension benefit shall be applied pro rata to increase the amount payable to the former spouse. 1 The percentage of the Former Spouse s share may be expressed in terms of a fraction, such as 50% of the years of marriage during Plan service divided by the total number of years of plan service. 2 See Footnote 1. 7
[OPTIONAL] 5. Plan Information: The Participant shall 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: ENSION: SUBJECT: Acknowledgement of Legal Obligation to Pay Spousal Support Pursuant to Section 5.1(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. I acknowledge that the amount specified in the attached order 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] 10
Kiosk Announcement The Bank Group's Policy on Staff Compliance With Legal Obligations to Provide Salary and Benefits Information and Spousal and Child Support The World Bank Washington, D.C. 20433 U.S.A. SHENGMAN ZHANG Managing Director and Corporate Secretary To All Staff : The Bank Group's Policy on Staff Compliance With Legal Obligations to Provide Salary and Benefits Information and Spousal and Child Support October 23, 1998 For some time, spouses and dependents of staff employed by the Bank Group (IBRD, IDA, IFC, MIGA, and ICSID) and other international organizations have expressed concerns that the organizations immunities place them at a disadvantage when, upon dissolution of marriage, they attempt to obtain financial settlements or court orders imposing support obligations on staff. Two principal obstacles are often cited: the spouses and dependents find it difficult to obtain a meaningful award of support or alimony if the staff member withholds accurate information concerning salary and benefits, and efforts to recover support or alimony payments from the staff member are sometimes impeded by the immunity of the organizations from garnishment orders. The Bank Group has taken the general position that its immunities should not be used to shield staff from their personal legal obligations. This principle becomes paramount with regard to support obligations of staff to their own family members. In recognition of this principle, and in response to the efforts of the World Bank Volunteer Services, which represents many spouses of Bank Group staff, the Bank Group will be adopting procedures designed to ensure provision of pertinent information relating to salary and benefits to spouses, and greater compliance with spousal and child support obligations. With regard to provision of information, the Bank Group will continue to encourage staff to consent to making benefits information available to their spouses (by completing Form 2298, which may be obtained from the HR Service Center). Additionally, in the absence of consent, and where there is a final court order or request from a judicial or civil authority in the context of 11
divorce or child support requiring the staff member to provide salary and/or benefits information, the procedures described in the following paragraph will apply. In cases where such a final court order or request is submitted to the Bank Group, the matter will be brought to the attention of the Office of Professional Ethics, which will remind the staff member of the obligations imposed upon all staff to meet their personal legal obligations and counsel the concerned staff member to provide the requested information directly to the spouse or other family member. If the staff member does not provide the Bank Group with evidence of having responded to the court order or request within 30 calendar days thereafter, the Bank Group may provide the spouse, former spouse or child (or a legal representative of any of them) all or some of the following information, as requested by the Court: (i) the staff member s net salary, gross compensation (if applicable) and accrued separation grant (if applicable); (ii) (iii) the staff member s accrued SRP benefit as of the date of the request; and the identity of the staff member s designated beneficiaries, if any, for purposes of SRP death benefits and life insurance benefits. The Bank Group would provide this information voluntarily, without waiving the organizations privileges and immunities. Regarding compliance with spousal and child support orders, the Bank Group is adopting a similar policy. In cases where a final court order requiring a staff member to make payments of spousal or child support (or one evidencing the failure to make such payments) is brought to the attention of the Bank Group, the matter will be brought to the attention of the Office of Professional Ethics, which will advise the staff member of the need to comply with personal legal obligations. If, within 30 calendar days thereafter, the staff member has not furnished the Office of Professional Ethics with evidence establishing that the required payments were made in whole or in part, and if the documentation evidences the clear legal obligation of the staff member to make monthly payments of a readily ascertainable amount or percentage of salary, the Bank Group will accordingly commence deductions from a staff member s salary of such percentage or amount. The amounts deducted will then be directed to the spouse, former spouse or child, in accordance with the order. This policy will be consistently applied wherever the legal requirements are fulfilled, without waiving the organizations immunities. The new procedures described above will be effective immediately. The Bank Group strongly encourages staff to comply with their legal obligations -- especially those involving financial support to family members. 12
The World Bank 1818 H Street N.W. Tel: (202) 458-2977 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Pension Administration, MSN MC 7-710 Fax:: (202) 522-1723 INTERNATIONAL DEVELOPMENT ASSOCIATION Washington, D.C. 20433 U.S.A. Cable Address: INDEVAS Mr. Kerry H. Mack Staff Retirement Plan Benefits Administrator February 2, 1999 Dear Retiree: We are pleased to inform you about the recently approved amendments to the Staff Retirement Plan that will become applicable to all retired participants. 1) The basis for Cost-of-living Adjustment on pensions paid in U.S. dollars has been changed. The regional Washington DC index will be replaced by the broader based U.S. national index. United States consumer price index means the consumer price index for all urban consumers, United States city average, all items, as published by the United States of America Department of labor, Bureau of labor Statistics. It should be noted that the Washington consumer price index was replaced by Baltimore-Washington regional index. The use of the national index was considered appropriate as it was consistent with the use of national indices for adjusting pensions paid in currencies other than U.S. dollars. Furthermore, the broader based national index can be expected to be less volatile than the regional index. 2) Optional Survivor Annuity for divorced spouses has been added. A retired participant receiving a pension may elect to provide a pension for life in a specified amount to a spouse who was not married to him on the last day of participation, to a former spouse, or to both. The election shall be made by September 30, 1999, or within 180 days after a final divorce decree is either entered or becomes effective. The election shall become effective as of a date specified in the election that is no earlier than 60 days following the date on which the election is submitted to the Benefits Administrator. The pension shall become effective on the day after the death of the retired participant, and shall be payable to the person for whom such pension was elected and who survives the retired participant. When the election becomes effective, the pension payable to the retired participant shall be reduced. Such election may not be revoked after it becomes effective. If you have any questions regarding the above amendments, please do not hesitate to contact Pension Administration at 202-458-2977. 13
Kerry H. Mack Staff Retirement Plan Benefits Administrator 14