Opinion ID: 483376
Heading Depth: 2
Heading Rank: 1

Heading: Scope of Federal and State Law

Text: 11 In 1948 Congress created a survivor annuity for widows of federal employees. Civil Service Retirement Act (CSRA) Amendments of 1948, Pub.L. No. 80-426, Sec. 11, 62 Stat. 48, 54-55 (codified as amended at 5 U.S.C. Sec. 8341(d)): 12 If an employee or Member dies after completing at least 18 months of civilian service, his widow or widower is entitled to an annuity ... The annuity of the widow or widower commences on the day after the employee or Member dies. 13 Widow is defined in 5 U.S.C. Sec. 8341(a)(1), as amended: 14 [W]idow means the surviving wife of an employee or Member who-- 15 (A) was married to him for at least 9 months immediately before his death; or 16 (B) is the mother of issue by that marriage. 17 The regulation in effect at the time of Hubert's death provided that civil service survivor annuity benefits were payable to only one natural person.  5 C.F.R. Sec. 831.601(b) (1983). Because the CSRA does not define wife or marriage, OPM has since 1979 used a uniform definition of marriage to decide between competing claimants. 50 Fed.Reg. 20,064 (1985); see Jacobs v. Office of Personnel Management, 11 MSPB 306, 307 & n. 2, 13 M.S.P.R. 23, 25-26 & n. 2 (1982), aff'd mem., 707 F.2d 513 (5th Cir.1983). In 1985 that definition was codified at 5 C.F.R. Sec. 831.603: 18 Marriage means a marriage recognized in law or equity under the whole law of the jurisdiction with the most significant interest in the marital status of the employee, Member, or retiree unless the law of that jurisdiction is contrary to the public policy of the United States. If a jurisdiction would recognize more than one marriage in law or equity, the Office of Personnel Management (OPM) will recognize only one marriage, but will defer to the local courts to determine which marriage should be recognized. 19 The parties do not dispute that OPM's 1985 regulation applies to this case. See United States v. Morton, 467 U.S. 822, 835 n. 21, 104 S.Ct. 2769, 2777 n. 21, 81 L.Ed.2d 680 (1984) (where substantive law had not changed, regulation was given controlling weight although promulgated after suit brought). 20 The parties further do not dispute that California is the jurisdiction with the most significant interest in Hubert's marital status. Gloria argues, however, that OPM and the board deferred to the wrong California law in determining who was entitled to the survivor annuity. Gloria argues that, under 5 C.F.R. Sec. 831.603, the whole law of the jurisdiction of California includes its community property laws. Gloria says she is entitled to the survivor annuity because the California courts would view it as a property asset of Gloria's marriage. In Gloria's view, federal law merely creates the property asset, while state law determines how it is distributed. 21 The board assigned federal law a bigger role. In its analysis, federal law creates the property asset and determines how it is distributed. State law merely defines the relevant familial relationships. The board said Betty was entitled to the survivor annuity because the California courts would view hers as the valid marriage. OPM and Betty argue that the board was correct. We agree. 22 The CSRA specifies that a federal employee's widow is entitled to a civil service survivor annuity. 5 U.S.C. Sec. 8341(d). Congress directed that the widow receiving the annuity be the surviving wife who was married to the employee when he died. 5 U.S.C. Sec. 8341(a)(1). Under that statutory scheme, the only remaining question is who was married to him. 23 One of our predecessor courts addressed that question: In enacting [5 U.S.C. Sec. 8341], Congress undoubtedly left the determination of whether an employee was married or not up to the laws of the individual states. Yarbrough v. United States, 341 F.2d 621, 623, 169 Ct.Cl. 589 (1965). In Yarbrough, a second wife and the children of a first wife filed competing claims to a civil service survivor annuity. The Court of Claims applied Alabama law to find that the second wife was the lawful 'widow' of the decedent within the meaning and intent of [5 U.S.C. Sec. 8341(a)(1) ] and [was] entitled to receive the annuity provided for in [5 U.S.C. Sec. 8341(d) ]. 341 F.2d at 626. The Court of Claims consulted Alabama laws defining familial relationships, but did not consult its laws governing property rights. 24 Congress authorized OPM to administer the CSRA and to promulgate implementing regulations. 5 U.S.C. Sec. 8347(a). The longstanding interpretation placed on a statute by the agency charged with its administration should be followed unless there are compelling indications that it is wrong. E.g., Chevron U.S.A. Inc. v. Natural Resources Defense Council, 467 U.S. 837, 843-44, 104 S.Ct. 2778, 2781-82, 81 L.Ed.2d 694 (1984); Red Lion Broadcasting Co. v. FCC, 395 U.S. 367, 381, 89 S.Ct. 1794, 1801-02, 23 L.Ed.2d 371 (1969); American Lamb Co. v. United States, 785 F.2d 994, 1001 (Fed.Cir.1986). OPM's implementing regulation is consistent with the Court of Claims' interpretation of the CSRA. OPM defer[s] to the local courts to determine which marriage should be recognized. 5 C.F.R. Sec. 831.603 (emphasis added). Since at least 1966, OPM and its predecessor, the U.S. Civil Service Commission, have used state law only to identify which surviving spouse was married to a decedent at the time of his death, not to determine property entitlements. Jacobs, 11 MSPB at 307 & n. 2, 13 M.S.P.R. at 25-26 & n. 2; see Nivert v. Office of Personnel Management, 10 MSPB 65, 66, 11 M.S.P.R. 77, 79 (1982). 25 The CSRA contains internal evidence supporting the Court of Claims' and OPM's interpretation. Retirees are given the right to choose either a full retirement annuity without survivor benefits, or a reduced annuity with survivor benefits, under the CSRA. 5 U.S.C. Sec. 8339(j). This court held in Roebling v. Office of Personnel Management, 788 F.2d 1544, 1547 (Fed.Cir.1986), that California community property laws cannot defeat that right. The CSRA contains an anti-assignment provision. 5 U.S.C. Sec. 8346(a). The Supreme Court found that such a provision in the Railroad Retirement Act was evidence that Congress intended annuities under that Act to be beyond the reach of California community property laws. Hisquierdo v. Hisquierdo, 439 U.S. 572, 99 S.Ct. 802, 59 L.Ed.2d 1 (1979). The CSRA allows retirees to designate a survivor annuity recipient. 5 U.S.C. Sec. 8339(k). The Supreme Court found that a beneficiary designation provision in the National Service Life Insurance Act was evidence that Congress intended benefits under that Act to be beyond the reach of California community property laws. Wissner v. Wissner, 338 U.S. 655, 70 S.Ct. 398, 94 L.Ed. 424 (1950). Moreover, Congress recently amended the CSRA specifically to allow OPM to recognize certain state court orders defining property rights in survivor benefits. Civil Service Retirement Spouse Equity Act of 1984, Sec. (2)(4)(G), 5 U.S.C. Sec. 8341(h). 26 The language of the CSRA, at least 20 years of administrative interpretation, and judicial construction of the CSRA and similar statutory schemes support the board's finding that federal law determines to whom the civil service survivor annuity here at issue is to be paid. To the extent that California community property laws conflict with the federal statutory scheme, they must yield to it under the Supremacy Clause of the U.S. Constitution, art. VI, cl. 2. The board did not err, therefore, in ruling that Gloria's status under California community property laws was not relevant. It correctly deferred to California laws defining familial relationships to determine who was married to Hubert at the time of his death.