FAQs - Community Property Rights for Registered Domestic Partners

Can a court award my former registered domestic partner a portion of my CalPERS (Defined Benefit Plan) retirement benefits upon termination of the partnership?
Yes. Upon the dissolution of a registered domestic partnership, your CalPERS Defined Benefit Plan can be divided in accordance with the law governing the division of a pension under the California Family Code. The division of your CalPERS Defined Benefit Plan is subject to the same procedures for filing and implementing a Domestic Relations Order that apply in the dissolution of marriage (see Family Code Section 299 (d)).

The federal government does not recognize domestic partners as "spouses" for federal tax purposes. If your domestic partner does not constitute a dependent under the federal income tax code, amounts awarded to your domestic partner may not actually be paid until you experience a distributable event, as defined for federal income tax purposes (i.e., retire or pass away). In addition, any distribution made to your domestic partner pursuant to a domestic relations order will be taxable to you for federal income tax purposes. Also, a 10 percent excise tax may apply to your domestic partner if they do not meet the federal income tax definition of a "dependent" and the distribution is otherwise considered an "early distribution" under the federal income tax code.

Does CalPERS have any information on community property or sample language that can be used for a Domestic Relations Order?
The CalPERS Community Property Model Order Package provides information about community property and CalPERS. The CalPERS Community Property Model Order Package is being revised to address the rights of a registered domestic partner in the division of retirement benefits. This package will contain sample suggested language which can be used in the preparation of your Domestic Relations Order to divide the CalPERS Defined Benefit Plan. The CalPERS Community Property Unit can also answer your questions and can be reached at (916)-795-3551.

Additional Resources
Registered Domestic Partner Information
Death Benefits & Registered Domestic Partners
Health Coverage & Registered Domestic Partners 

Dated: 03-24-2009