If you divide a share of the monthly benefit and the participant chooses a refund of his contributions, the non participant receives nothing because the order divides an annuity and not a refund of contributions. The Order must be specific. The participant controls the commencement of benefits and the terms and conditions of benefit payment. It is possible in the Order to prohibit the participant from choosing a refund of contributions. This is a very important negotiable point.
Survivor options are another confusing, but extremely important, negotiating issue.
This issue should be considered at the time a present value calculation is being considered. The negotiating implications are that the attorney can secure an excellent concession for other options or benefits. During the pre-retirement period, it becomes even more confusing. In fact, if survivor benefits are in pay-status and the former spouse remarries, they will automatically cease. If for some reason the payments continue, the non-participant spouse will have an indebtedness to the Office of Personnel Management that can be legally enforced to repay the amounts received in error.