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1030.5 Actual Computation

This section provides a detailed explanation of the steps involved in computing a 

divorced spouse annuity.

The divorced spouse annuity consists only of a tier I. Tier I is an amount computed 

under the social security benefit formula, using the employee's combined railroad and 

social security earnings. The tier I is reduced for entitlement to other benefits.

NOTE: If the divorced spouse is entitled to a retirement insurance benefit (RIB) or 

disability insurance benefit (DIB) on the divorced spouse's own earnings record, based 

on a Primary Insurance Amount (PIA) which is equal to or greater than one-half of the 

employee's tier 1 PIA, the divorced spouse is not eligible for an annuity.

1030.5.1 Gross Tier I

The divorced spouse's gross tier I is one-half (1/2) of the employee's gross tier I PIA 

(before any delayed retirement credits and any age reduction).

Exception: If, in a conversion case, the employee is not vested for an RIB/DIB VDB, his 

gross tier I cannot exceed his 12-1974 annuity rate (before any age reduction) plus any 

COLs. In such case, the divorced spouse's gross tier I benefit is one-half of the 

employee's 12-1974 annuity rate plus any COLs.

1030.5.2 Worker's Compensation/Public Disability Pension Reduction

A reduction for workman's Compensation (WC) or public disability benefits may be 

applied to the tier I of a divorced spouse annuity if the employee is receiving a disability 

annuity and is entitled to worker's compensation or a public disability benefit. The 

reduction is first applied to the spouse and/or divorced spouse tier I (in equal amounts if 

both are entitled), then to the employee annuity tier I. The WC reduction does not apply 

if the employee is receiving an age and service annuity, even if the employee has a 

disability freeze (DF).

See FOM-I-1015.5E for an explanation of when the offset applies and the formula for 

determining the amount of the offset.

1030.5.3 Reduction for Public Service Pension

The divorced spouse's tier I is subject to reduction for entitlement to a public service 

pension (PSP) based on the divorced spouse's own earnings payable to the divorced

spouse. The reduction does not apply, however, if social security (FICA) taxes were 

deducted from her government earnings on the last day of her government employment.

A. Beginning: The reduction applies to:
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12-1-77 Divorced spouses married to the employee less than 20 

years.

The offset does not apply beginning 12-1-82 if dependency 

is established.

12-1-82 Divorced wives married to the employee 20 years or more 

first eligible for a PSP 12-1-82 or later.

If the divorced wife is dependent on the employee and first 

eligible for the PSP before 7-1-83, no offset will be applied.

7-1-83 All divorced spouses first eligible for a PSP 7-1-83 or later.

NOTES: 1. When the individual filed before December 1977 but the 

annuity beginning date is 12-1-77 or later, the application is 

deemed to be filed in December 1977. This covers 

applications filed in September through November for 

entitlement in December 1977. Since those applications are 

considered to be filed in December 1977, the PSP reduction 

may apply. If an application was filed in December 1977 or 

later for annuities that are retroactive before December, the 

PSP reduction applies to annuities payable for December 

1977 on.

2. A divorced spouse who would have been eligible for a PSP in 

November 1982 or June 1983 except for a requirement which 

delayed payment of the PSP until December 1982 or July 

1983 is exempt from the reduction beginning in December 

1984.

For example, a Federal employee last worked on June 10, 

1983. Although she was over 55 and had more than 30 years 

of service, her civil service annuity could not begin before 

July because she worked past the third of June. Her tier I is 

exempt from the PSP reduction beginning in December 

1984.

B. The amount of the reduction is equal to:

• 100% of the PSP for months before December 1984 if the divorced spouse is 

first eligible for the PSP before 7-1-83; 66 2/3% of the PSP beginning in 

December 1984.

• 66 2/3% of the PSP if the divorced spouse is first eligible for the PSP 7-1-83 

or later.
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1030.5.4 Age Reduction

A divorced spouse's gross tier I is reduced for age if she is under FRA on her ABD. An 

age reduction applies to the divorced spouse even when the employee qualified for an 

unreduced 60/30 annuity.

A. Initial award or adjustment from ABD

1. Divorced spouses first awarded before August 12, 1983. The age 

reduction is equal to 1/144 of the gross tier I for each month the divorced 

spouse is under age 65 on her divorced spouse's ABD. If the divorced 

spouse previously received a spouse annuity, receipt of that benefit is not 

considered in determining the divorced spouse's age reduction.

2. Divorced spouses first awarded August 12, 1983, or later. The age 

reduction is equal to 1/144 of the gross tier I for each month up to 36 

months plus 1/240 for each additional month beyond 36 that the divorced 

spouse is under FRA on her divorced spouse's ABD if:

a. The divorced spouse was not previously entitled to a spouse 

annuity; or

b. The divorced spouse was previously entitled to a spouse annuity 

that was not reduced for age. (This includes full or reduced 60/30 

annuities.)

The annuity of a divorced spouse who was previously entitled to a 

reduced age spouse annuity is reduced using the same reduction 

factor that applied to the spouse annuity, even if there is a break in 

entitlement.

B. Rate increase after the ABD - Any increase in the gross tier I amount is reduced 

by the same factor which was used in the initial award. 

1030.5.5 Reduction for Other Benefits

The divorced spouse's tier I is reduced by the following other benefits:

A. Any SS benefit to which the divorced spouse is entitled. If the SS benefit is 

reduced because of entitlement to a public service pension, the reduction in tier I 

would be based on the amount of the SS benefit after offset for the public service 

pension.

B. The full amount of the net tier I, tier II and vested dual benefit of any RR Act 

employee annuity payable to the divorced spouse.
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1030.5.6 Net Tier I/Annuity Rate

The net tier I, or the annuity rate, is the last computed rate. The divorced spouse's 

entitlement is not considered in determining the SSA family maximum or the RRA 

maximum.

Note:

• No annuity is payable for the month of a divorced spouse's 62nd birthday unless 

she was born on the first or second day of the month. Also, if the divorced 

spouse is applying for a reduced age annuity, no annuity is payable for months 

prior to the month the application is filed.

• Under the 1988 SS Act amendments, a divorced spouse tier I benefit is not 

payable for any month in which the employee is deported on or after 11-10-88, 

due to associations with the Nazi government of Germany during World War II, 

and the divorced spouse is an alien who is not living in the U.S.