quires an annuity to be terminated contrary to 5 U.S.C. 8445(c)(2).

(3) A court order will not be honored to the extent it is inconsistent with any joint designation or waiver previously executed under section 8416(a) of title 5, United States Code, respect to the former spouse involved.

§ 841.906 Processing court orders dividing employee retirement benefits.

(a) Upon receipt of a court order dividing employee retirement benefits without an item of documentation required under § 841.904, the Associate Director will notify the person submitting the order of which item(s) is necessary to document the claim and that the claim cannot be processed without the missing item(s).

(b) Upon receipt of a court order dividing employee retirement benefits with all the documentation required under § 841.904, the Associate Director will review the court order to determine whether it is a qualifying court order under § 841.903 and whether the employee or Member affected by the order is receiving or entitled to receive employee retirement benefits.

(c) If the Associate Director determines that the order is not a qualifying court order, the Associate Director will send a notice to the employee and a final decision to the former spouse or separated spouse.

(1) The notice to the employee will state that OPM has received a court order from the former spouse or separated spouse but OPM has determined that the court order is not a qualifying court order.

(2) The final decision to the former spouse or separated spouse will

(i) Acknowledge receipt of the court order;

(ii) State that the court order is not a qualifying court order and identify the paragraph(s) of § 841.903 under which the court order failed to qualify; and

(iii) State the right to appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(d) If the Associate Director determines that the court order is a qualifying court order and the employee is immediately eligible to receive employee retirement benefits, the Associate

Director will send a final decision to both the employee and the former spouse or separated spouse.

(1) The final decision to the employee will state

(i) That OPM has received a court order affecting employee retirement benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) The effect that compliance with the court order will have on employee retirement benefits;

(v) How the former spouse's or separated spouse's share of retirement benefits was computed;

(vi) In cases affecting annuity payments, that the retiree's annuity will be reduced effective with benefits accruing on the first day of the second month after OPM's receipt of the required documentation;

(vii) That the order must be honored unless entitlement terminates under § 841.908; and

(viii) That the employee may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(2) The final decision to the former spouse or separated spouse will state

(i) That OPM has received the court order affecting employee retirement benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) How the former spouse's or separated spouse's share of retirement benefits was computed;

(v) That, if the former spouse or separated spouse disagrees with the computation, he or she may appeal the decision to MSPB and the procedure and time limit for submitting an appeal;

(vi) In cases affecting annuity payments, that the former spouse's or separated spouse's share of the retiree's

annuity will begin to accrue effective on the first day of the second month after OPM's receipt of the required documentation and will be paid on the first day of the month after accrual; and

(vii) The order will continue to be honored unless entitlement terminates under § 841.908.

(e) If the Associate Director determines that the court order is a qualifying court order and the employee is not immediately eligible to receive employee retirement benefits, the Associate Director will send a final decision to both the employee and the former spouse or separated spouse.

(1) The final decision to the employee will state

(i) That OPM has received a court order affecting employee retirement benefits and the date when OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) The effect that compliance with the court order will have, under current law and regulations, on future employee retirement benefits, when payable;

(v) How the former spouse's or separated spouse's share of retirement benefits would be computed under current law and regulations;

(vi) That the order must be honored unless entitlement terminates under § 841.908; and

(vii) That the employee may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(2) The final decision to the former spouse or separated spouse will state

(i) That OPM has received the court order affecting employee retirement benefits and the date when OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) How the former spouse's or separated spouse's share of retirement benefits would be computed under current law and regulations;

(v) That, if the former spouse or separated spouse disagrees with the computation, he or she may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(vi) That, in accordance with § 841.905, nothing is payable before employee retirement benefits are pay

able to the employee; and

(vii) That the order will be honored when employee retirement benefits become payable unless entitlement terminates under § 841.908.

§ 841.907 Processing court orders affecting survivor annuity benefits.

(a) Upon receipt of a court order affecting survivor annuity benefits without an item of documentation required under § 841.904, the Associate Director will notify the person submitting the order of which item(s) is necessary to document the claim and that the claim cannot be processed without the missing item(s).

(b) Upon receipt of a court order affecting survivor annuity benefits with all the documentation required under § 841.904, the Associate Director will review the court order to determine whether it is a qualifying order under § 841.903, and whether the employee or Member affected by the order is receiving or entitled to receive employee retirement benefits or has died.

(c) If the Associate Director determines that the order is not a qualifying court order, the Associate Director will send a notice to the employee or survivor and a final decision to the former spouse.

(1) The notice to the employee or survivor will state that OPM has received a court order from the former spouse but OPM has determined that the court order is not a qualifying court order.

(2) The final decision to the former spouse will—

(i) Acknowledge receipt of the court order;

(ii) State that the court order is not a qualifying court order and the regu

lations under which the court order failed to qualify; and

(iii) State the right to appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(d) If the Associate Director determines that the court order is a qualifying court order and the employee has died, the Associate Director will send a final decision to the former spouse and any other claimant whose interest is adversely affected by the court order.

(1) The final decision to any other claimant whose interest is adversely affected by the court order will state

(i) That OPM has received a court order awarding survivor annuity benefits and the date that OPM received the documentation required by

§ 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) The effect that compliance with the court order will have on the claimant's entitlement to benefits;

(v) That the order must be honored unless entitlement terminates under § 841.908; and

(vi) That the claimant may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(2) The final decision to the former spouse will state

(i) That OPM has received the court order awarding the survivor annuity benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) How the former spouse's survivor annuity was computed;

(v) That, if the former spouse's disagrees with the computation, he or she may appeal to MSPB and the procedure and time limit for submitting an appeal;

(vi) That the survivor annuity will begin to accrue effective on the first

day of the second month after OPM's receipt of the required documentation; and

(vii) That the order will continue to be honored unless entitlement terminates under § 841.908.

(e) If the Associate Director determines that the court order is a qualifying court order and the employee is alive and receiving a retirement annuity, the Associate Director will send a final decision to both the retiree and the former spouse.

(1) The final decision to the retiree will state

(i) That OPM has received a court order awarding survivor annuity benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) The effect that compliance with the court order will have on annuity benefit and survivor election;

(v) How the amount of reduction to provide the former spouse annuity benefit was computed;

(vi) That the reduction will be effective on the first day of the second month after receipt of the documentation required by § 841.904;

(vii) That the order must be honored unless entitlement terminates under § 841.908; and

(viii) That the employee may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(2) The final decision to the former spouse will state

(i) That OPM has received the court order awarding survivor annuity benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) How the former spouse annuity benefits will be computed;

(v) That, if the former spouse disagrees with the computation, he or she may appeal to MSPB and the procedure and time limit for submitting an appeal;

(vi) That nothing is payable before the death of the retiree; and

(vii) That the order will be honored unless entitlement terminates under § 841.908.

(f) If the Associate Director determines that the court order is a qualifying court order and the employee has not retired, the Associate Director will send a final decision to both the employee and the former spouse.

(1) The final decision to the employee will state

(i) That OPM has received a court order awarding survivor annuity benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) The effect that compliance with the court order will have, under current law and regulations, on future annuity benefits, when payable;

(v) How the reduction in future annuity benefits would be computed under current law and regulations;

(vi) That the order must be honored unless entitlement terminates under § 841.908; and

(vii) That the employee may appeal the decision to MSPB and the procedure and time limit for submitting an appeal.

(2) The final decision to the former spouse will state

(i) That OPM has received the court order awarding survivor benefits and the date that OPM received the documentation required by § 841.904;

(ii) The applicable law and regulations under which OPM is required to comply with the court order;

(iii) That the order is a qualifying court order under applicable law and regulations;

(iv) How the former spouse's survivor annuity benefits would be computed under current law and regulations;

(v) That, if the former spouse disagrees with the computation, he or she may appeal to MSPB and the procedure and time limit for submitting an appeal;

(vi) That nothing is payable before the death of the employee; and

(vii) That the order will be honored when the employee dies unless entitlement terminates under § 841.908.

§ 841.908 Termination of former spouse or separated spouse benefits.

(a) OPM will terminate a recurring payment of or a future interest in employee retirement benefits to a former spouse or separated spouse whenever(1) The retiree dies;

(2) A contemporaneous or subsequent court order supersedes or sets aside the qualifying court order or directs that OPM stop the payments; or

(3) Termination is required by the terms of the court order awarding benefits to the former spouse or separated spouse.

(b) OPM will terminate a recurring payment of or a future interest in survivor annuity benefits to a former spouse whenever

(1) The former spouse dies;

(2) The former spouse remarries before attaining age 55;

(3) A contemporaneous or subsequent court order determines that the qualifying court order awarding the survivor annuity benefits is invalid; or (4) Termination is required by the terms of the court order awarding benefits to the former spouse.

(c) OPM will honor a qualifying court order that appears valid on its face despite a pending appeal or other attack on the validity of the qualifying court order unless the original or reviewing court has issued a stay of the qualifying court order or has ordered OPM not to honor the qualifying court order pending the appellate or collateral review. Automatic stays under state law will not be honored unless the original or reviewing court issues a document suspending the effect of the qualifying court order pending the review of the qualifying court order.

§ 841.909 Court orders preventing pay. ment of refunds of contributions. (a) Payment of a refund of contributions to a former employee will be subject to the terms of any court order issued with respect to any former spouse or separated spouse, if

(1) The court order expressly relates to any portion of the refund involved; and

(2) Payment of the refund would extinguish entitlement of the former spouse to a survivor annuity under section 8445 of title 5, United States Code, or the former spouse or separated spouse to any portion of an annuity under section 8467 of title 5, United States Code.

(b) For paragraph (a) of this section to have effect, OPM must be in receipt of the court order before authorizing payment of the refund.

(c)(1) In the event that OPM receives two or more court orders

(i) When there are two former spouses, or a former spouse and a separated spouse, the court orders will be honored in the order in which they were issued until the contributions have been exhausted.

(ii) When there are two or more court orders or decrees relating to the same former spouse or separated spouse, the one issued last will be honored first.

(2) In no event will the amount paid out exceed the amount of the refund.

(d) OPM is not liable for any payment made from money due from or payable by OPM to any individual pursuant to a court order that is regular on its face, if such payment is made in accordance with this subpart. 8841.910 Effective dates.

(a) Except as provided in § 841.903(d), provisions of this subpart apply regardless of the date of issuance of the court order or the date when the employee or Member retires.

(b)(1) The Associate Director will not increase the amount apportioned from current retirement benefits to satisfy an arrearage due the former spouse or separated spouse unless the court order states the amount of the arrearage and directs that it be paid from the employee retirement benefits. However, the Associate Director

will honor the terms of a new or revised court order that either increases or decreases the former spouse's or separated spouse's entitlement. These changes will be prospective only.

(2) Benefits payable to a former spouse or separated spouse from a retiree's annuity begin to accrue no earlier than the first day of the second month after OPM's receipt of a qualifying court order and the documentation required by § 841.904, and terminate no later than the last day of the month before the death of the retiree.

(c) The survivor annuity for a former spouse commences and terminates in accordance with the court order. However, a court order will not be honored to the extent it would require an annuity to commence before

(1) The day after the employee, Member, or retiree dies; or

(2) The first day of the second month beginning after OPM receives the court order, together with such additional information required by § 841.904, whichever is later.

Further, a court order will not be honored to the extent it requires an annuity to be terminated contrary to section 8445(c) of title 5, United States Code.

§ 841.911 Payment only to former spouses and separated spouses.

(a) Payments under this subpart may only be made to a former spouse, a separated spouse, or the representative of a former or separated spouse.

(b) No payment under this subpart may be made after the death of the former spouse or separated spouse.

(c) Upon the death of a former spouse or separated spouse receiving a portion of employee retirement benefits under this subpart, the former spouse's or separated spouse's share will revert to the retiree unless it is needed to comply with another qualifying court order awarding benefits to a living former spouse or separated spouse.

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