Dividing Federal Retirement (FERS, CSRS and TSP) in a Divorce

Reviewed by Carrie Warner, Attorney at Law, SC Bar No. 72836 · Last reviewed November 2, 2026

Federal civilian retirement benefits can be divided in a South Carolina divorce, but not with an ordinary QDRO. A FERS or CSRS annuity is divided by a court order that the Office of Personnel Management (OPM) accepts for processing, and a Thrift Savings Plan (TSP) account is divided by a separate retirement benefits court order sent to the TSP. Each has its own wording rules, and small drafting mistakes can delay or defeat payment.

Three Federal Benefits, Three Sets of Rules

Federal employees often have more than one retirement benefit:

• FERS annuity. The Federal Employees Retirement System pension, paid monthly by OPM after retirement.
• CSRS annuity. The older Civil Service Retirement System pension, which covers some longer-serving employees.
• TSP account. The Thrift Savings Plan, a defined contribution account similar to a 401(k).

None of these is an ERISA plan, so the private-plan QDRO rules do not apply. Military retired pay is different again and is covered in our page on military divorce. For private 401(k)s and pensions, see QDROs in South Carolina divorce.

Is the Federal Benefit Marital Property?

South Carolina uses equitable apportionment. The part of a federal annuity or TSP balance earned during the marriage is generally marital property, and the court considers vested retirement benefits as one of the factors in S.C. Code § 20-3-620. There is no automatic 50/50 rule. The family court decides the share, and OPM or the TSP then carries out the order as written.

Dividing a FERS or CSRS Annuity: The OPM Court Order

OPM’s rules for court orders are in 5 C.F.R. Part 838. OPM will act only on a “court order acceptable for processing.” In general, the order must:

• Expressly direct OPM to pay a portion of the employee’s or retiree’s annuity to the former spouse. Language that only tells the employee to pay is not enough for OPM to pay directly.
• Clearly identify the retirement system and state the former spouse’s share as a fixed amount, a percentage or a formula OPM can compute from its own records and the order’s language.
• Be certified by the court.

OPM’s regulations include defined terms and model language. Using OPM’s terminology helps avoid an order OPM cannot compute. A certified copy goes to OPM’s Court-Order Benefits Branch, and if the employee is still working, a copy should also go to the agency’s human resources office.

A former spouse’s share of a monthly annuity generally starts only when the annuity is paid. OPM’s guidance says apportionment payments are taxable income to the former spouse who receives them. A court order can also address a refund of retirement contributions if the employee leaves federal service and asks for one.

The Former Spouse Survivor Annuity

This is the part most often missed. The share of a monthly annuity usually ends when the retiree dies. A former spouse who wants continuing income after that death needs a former spouse survivor annuity.

Under OPM’s rules, an order is acceptable for a survivor annuity only if it expressly awards a former spouse survivor annuity or expressly directs the employee or retiree to elect one. Key points from OPM’s guidance:

• The cost is generally paid by a reduction in the retiree’s annuity, and OPM will not accept other ways of paying for it.
• The former spouse generally must have been married to the employee for at least nine months.
• Survivor benefits generally end if the former spouse remarries before age 55, unless the marriage to the employee lasted at least 30 years.
• Orders issued after retirement or after the employee’s death face strict limits on what OPM will honor.

Because of those limits, the survivor annuity should be addressed in the settlement and the first order, not left for later. If a survivor annuity is not part of the deal, ask whether life insurance should take its place. See life insurance requirements in a South Carolina divorce.

Dividing a TSP Account: The Retirement Benefits Court Order

The TSP calls its order a retirement benefits court order. Its rules are in 5 C.F.R. Part 1653. In general, the order must:

• Expressly refer to the Thrift Savings Plan. Phrases such as “all retirement benefits” or “government benefits” are not enough.
• State the amount or percentage awarded and the date the award is calculated as of.
• Include identifying information for the participant and the payee required by the TSP.
• Be signed by a judge and certified, with all pages and attachments.

The TSP will also freeze an account when it receives an order that names the TSP and says the participant may not take a loan or withdrawal. That can be useful early in a case.

Once the TSP approves the order, it generally pays the former spouse no sooner than 30 days after its decision letter. A spouse or former spouse payee is taxed on the taxable portion of the payment unless it is rolled over to an IRA or eligible plan. Check the TSP’s current publication on court orders for its forms and deadlines.

Health Insurance: FEHB Is Not Divided

Federal Employees Health Benefits (FEHB) coverage is not property a court divides. A former spouse generally loses coverage as a family member when the divorce is final. Under federal spouse equity rules, a former spouse may be able to enroll on their own if they are entitled to a share of the annuity or a survivor annuity and meet other conditions, such as not remarrying before age 55. Confirm eligibility and deadlines with the employing agency or OPM. Our guide on health insurance after a South Carolina divorce covers other options.

Checklist Before You Sign

1. Get the employee’s latest annuity estimate, service history and TSP statement.
2. Confirm whether the employee is in FERS or CSRS, and note any military service credit purchased into the civilian annuity.
3. Decide the division method for the annuity and the valuation date for the TSP.
4. Decide whether a former spouse survivor annuity will be awarded and who bears its cost.
5. Consider asking for a TSP freeze while the case is pending.
6. Draft separate orders for OPM and the TSP, using each agency’s terminology.
7. Send certified copies to OPM and the TSP and keep proof of delivery.

These orders are usually prepared with the marital settlement agreement. For the full picture of the divorce process, visit the South Carolina Divorce Guide.

Frequently Asked Questions

Is a federal pension divided with a QDRO?

No. Federal civilian plans are not ERISA plans. A FERS or CSRS annuity is divided by a court order acceptable for processing by OPM, and a TSP account by a retirement benefits court order.

Does a share of the annuity continue after the retiree dies?

Generally no. Continuing income after death requires a former spouse survivor annuity that is expressly awarded in a court order OPM accepts.

Can the TSP account be frozen during the divorce?

Yes. The TSP will freeze an account when it receives a qualifying order that names the TSP and says the participant may not take a loan or withdrawal.

Will I keep FEHB health coverage after divorce?

Not as a family member. A former spouse may qualify to enroll separately under spouse equity rules if certain conditions are met. Check with OPM or the agency.

Are military retirement benefits handled the same way?

No. Military retired pay is divided under the Uniformed Services Former Spouses’ Protection Act, and direct payment through DFAS follows different rules.

Sources

• 5 C.F.R. Part 838: Court Orders Affecting Retirement Benefits
• OPM: Court-ordered retirement benefits FAQ
• OPM: Survivor benefits FAQ
• TSP: Court Orders and Powers of Attorney (booklet)
• 5 C.F.R. § 1653.2: Qualifying retirement benefits court orders
• S.C. Code Title 20, Chapter 3