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World Bank Staff Retirement Plan Payment of …

1 World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Pension (for Participants Joining the Plan Before April 15, 1998 )

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1 World Bank Staff Retirement Plan Payment of Spousal Support from Participant's Pension (for Participants Joining the Plan Before April 15, 1998) The World Bank Staff Retirement Plan ("Plan") defines the circumstances under which all or a portion of a normal retirement benefit, early retirement benefit, reduced early retirement benefit, withdrawal benefit, commuted lump sum payment, and cost-of-living adjustments from the Plan may be directed to a former or legally separated spouse. The normal QUADRO rules under law do not apply. To effectuate such payments, the Participant, and the spouse must meet the following requirements: (1) The Participant, or the spouse, or both, must obtain a final order or a decree from a court of competent jurisdiction directing the Participant to pay support to the legally separated or the former spouse. The order or decree must contain: (a) Order of Spousal Support - a statement that the Participant is ordered to provide support arising from a marital relationship to a former or a legally separated spouse. Only orders of spousal support or alimony are recognized by the Plan Administrator. (b) Amount of Support - a statement of the amount to be paid from the Participant's pension benefits to a former or legally separated spouse. The amount can be expressed as a sum certain, a percentage, or a fraction to be paid from each periodic pension payment and/or from a commuted lump sum, or withdrawal payment. The amount also may be designated with a formula or an equation, but the Plan Administrator must be provided with sufficient information to permit all of the necessary calculations. If the amount of spousal support is expressed as a fraction, the Order should express the numerator, the denominator, or both, as a number if the number can be calculated when the order is entered. Since the plan s benefits are based on number of days of service, formulas or fractions should, whenever possible, be framed in terms of days of service, rather than months or years of service. Days of service are based on elapsed calendar days. For example, someone who commences service on January 1, 2005 and ceases service on December 31, 2005. has 365 days of service. (c) Cost of Living Increases - The order may provide that the amount of the directed payment shall be constant or alternatively, that any cost of living increase shall be divided pro rata between the retiree and the former or separated spouse. . (d)Survivor Benefits - The Plan provides an automatic lifetime survivor s annuity to the spouse married to the retiree on both the last day of participation and the date of death. If there is no eligible surviving spouse, the Plan provides a lump sum 2benefit. The order may require that the Participant name the former spouse as recipient of the Plan s lump sum death benefit, if any. The order may also require that the Participant elect an optional survivor annuity for the former spouse. The optional survivor annuity may be elected before retirement, or within 180 days after a final divorce decree is either entered or becomes effective. To pay for the optional survivor annuity, the lifetime pension is reduced by an amount determined under the Plan. An order can specify whether the costs of the optional annuity will be deducted from the portion of the pension payable to the retiree, the portion payable to the spouse, or both. A provision in an order requiring the Participant to elect a survivor annuity or to designate a former spouse as beneficiary is not self-executing, as the participant must submit the necessary forms to the Plan before an election or designation becomes effective. (e) Payment Information and Currency The Order should specify the name, address, and social security number (if applicable) of the former or legally separated spouse, and the currency in which the payment is to be made. Payments of the lump sum commuted pension will be made only in United States dollars. Payments from normal, early, or reduced early pensions will be paid in a single currency of the country specified in the court order. Where a court order does not specify the currency in which payments from normal, early, or reduced early pensions will be paid, the payments will be made in the currency of the country where the Participant resides or United States dollars. (2) A certified copy of the final court order must be submitted to the Plan Administrator, preferably with a signed acknowledgement of the Plan Participant confirming the validity and finality of the order. (An acknowledgement form can be obtained from the Pension Administration Unit). If you would like the Plan to review a draft order, you can send the draft by email with a copy to both spouses (or their representatives to Ms. Sharada Sundar at or by fax to (202) 522 1723, or by mail to Pension Administration Division, MSN C7-702, The World Bank, 1818 H Street, NW, Washington, DC 20433. (3) Where the World Bank receives a court order from a party other than the Plan Participant, or without an acknowledgement signed by the Participant, payments will not be made to the former spouse or a legally separated spouse within 60 days after the approval of the order. During the 60 days, the World Bank will notify the Participant of the order and that payment to the former spouse or legally separated spouse will commence on a specific date, unless the Participant submits objections before that date. If the Participant submits the order or signs an acknowledgement (a form acknowledgement is attached), payment to the former spouse or legally separated spouse will commence as soon as practicable. (4) Payments may be directed to a former or separated spouse only when benefits are payable to the participant upon retirement under the Plan. Once the payments pursuant to a court order commence, they will not be stopped or reduced unless the Participant demonstrates to the Bank's satisfaction that the underlying obligation to pay the spousal support has terminated or 3has been reduced. However, payments will cease upon the death of either the Participant or the former or separated spouse to whom payment is directed. (5) The taxable amount of payments made to former spouses or legally separated spouses who are citizens or permanent residents of the will be reported to the Internal Revenue Service on a Form 1099R. The nontaxable portion of the pension will be allocated pro rata between the retiree and the spouse. (6) An order may require the participant to provide the former or separated spouse access to information concerning the amount and payment status of a participant s benefit and the identity of designated beneficiary. The Bank will provide such information directly where the participant fails to abide by the terms of such an order requiring provision of information or where the participant consents. Spousal Support Orders That Will Not Be Accepted And/Or Given Effect The order or decree should be designated as spousal support and not the division of property, even though some jurisdictions treat pension benefits as property. The Plan will not accept court orders that purport to divide the pension benefits as part of marital or community property, or convey an interest in the Plan or a benefit payable under the Plan to a former spouse or a legally separated spouse. The order cannot change the form or time of payment. Again, payments may be directed only when otherwise payable to the Plan Participant, and will cease upon the death of the Plan Participant or the former or separated spouse. The Plan will not accept court orders that purport to permit a former spouse or legally separated spouse to make benefit selections under the Plan. Court orders which direct the World Bank or the Plan (instead of the Participant) to make payments will also be rejected. Payments will be made by the Plan only to the former or legally separated spouse, and may not be assigned or pledged. The Plan will not make payments to assignees, mortgagees, pledges or heirs. The Plan Administrator will not recognize orders that require loan, mortgage, settlement, child support, or other payments to a former or legally separated spouse from the Participant's pension benefits. The Plan and the World Bank will follow the beneficiary designations and any optional survivor annuity election submitted by the Participant in the event of the Participant s death. However, the Plan will not follow and/or give effect to portions of any order that directs the Plan Participant to designate his former spouse as a beneficiary of disability benefits, of the lump sum death benefit, or of life insurance benefits. Likewise, the Plan will not follow and/or give effect to portions of any order requiring a Plan Participant to elect a commutation, early retirement pension, withdrawal benefit, or optional survivor annuity. If the Participant fails to comply with such provisions in a spousal support order, the former spouse may seek enforcement through the court(s) of competent jurisdiction. In cases where the court order or direction to pay is ambiguous or in dispute, the World Bank will not interpret the questionable provisions. Rather, payments to the former or legally separated spouse will be suspended until the ambiguity or the dispute is resolved by the parties. 4 [GENERIC SPOUSAL SUPORT ORDER] IN THE CIRCUIT COURT FOR Jane/John Doe Plaintiff vs. Case No. __________ John/Jane Doe Defendant ORDER FOR SPOUSAL SUPPORT Staff Retirement Plan WHEREAS, John/Jane Doe, Defendant in the above-captioned proceeding, has a right to receive retirement benefits earned by him/her during the parties' marriage; and WHEREAS, the Defendant is under a legal obligation arising out of the marital relationship to provide support for the Plaintiff; [and WHEREAS, the parties hereto have agreed to certain provisions for that support in a Voluntary Separation and Property Settlement Agreement dated ______________, which is Incorporated into the decree of divorce dated _______________________.] NOW THEREFORE, it is this _________ day of ____________ 199_; ORDERED, that Plaintiff Jane/John Doe shall receive support payments from the Defendant's pension benefits as follows: 1. Plan Identification. John/Jane Doe is a participant (hereinafter "The Participant") in the following retirement plan (hereinafter "The Plan"): 5Staff Retirement Plan of the International Bank for Reconstruction and Development 1818 H Street NW Washington, 20433 2. Identification of Participant and Former/Separated Spouse. The Participant, _____________, currently resides at [address]. Participant is a citizen of ______________, was born on _________________, and his/her Social Security Number is ________________________. His/her plan entry date, for purposes of calculating plan benefits, is [date]. The Former Spouse is _______________ , and she currently resides at [address] . The Former Spouse is a citizen of ________________ was born on ________, and his/her Social Security Number is 123-45-6789. The Former Spouse and the Participant were married on __________________, and were divorced by an order of the Circuit Court for _______________________ on _____________________. 3. Payment to Former Spouse. The Participant is hereby ordered to pay to the Former Spouse the amount specified in paragraph 4 below, as spousal support, from Participant's monthly benefit from the Plan at retirement. Such payments shall commence effective the later of [Date] or the date on which payment of Participant s monthly benefit from the Plan commences. Payments shall continue until the death of either the Participant or the former Spouse [or, if earlier, until (a Date certain)]. 4. Amount of Payment to Former Spouse. The Participant is hereby ordered to pay to the Former Spouse [$ _____ per month from his/her] or [____% of his/her]1 monthly benefit from the Plan. [OPTIONAL] (a) Commuted Benefit. In the event at retirement Participant elects a commuted pension amount, Former Spouse shall also receive [$ _____ from his/her] or [____% of his/her]2 of Participant's commuted benefit when payable under the terms of the Plan. 1 The percentage of the Former Spouse s share may be expressed in terms of a fraction, such as 50% of the years of marriage during Plan service divided by the total number of years of plan service. 2 See Footnote 1. 6[OPTIONAL] (b) Cost of Living Increases. Cost of Living Increases to the Participant s monthly pension benefit shall be applied pro rata to increase the amount payable to the former spouse. [OPTIONAL] 5. Plan Information: The Participant shall provide Former Spouse, upon his/her request, information concerning the amount of his/her Plan Benefit, and when he/she will be eligible to retire under the Plan, and the identity of beneficiaries of the Plan s Death Benefit, and Participant shall consent to the provision of such information by the Plan directly to the Former Spouse. 6. Limitations: (a) Nothing herein may be construed as a waiver of the privileges and Immunities enjoyed by the World Bank and/or its Staff Retirement Plan; (b) Further, this Order does not require the Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan; (c) Nor shall this Order be deemed to create any rights, benefits or obligations not provided for in the Plan; (d) Nothing in this Order shall impose any fiduciary obligation on the Plan to the Former Spouse, nor be construed as a designation of the Former Spouse as a beneficiary of any death benefit of the Plan, nor shall the Plan make any payments to any assigns, mortgagee or pledges of either party; and (e) Nothing in this Order shall be deemed to direct or effect any transfer of assets from the Participant or from the Plan to the Former Spouse, nor shall this Order be deemed to divide any property rights of the parties. 77. Continuing Jurisdiction. [Names of Participant and Former Spouse] having agreed thereto, this Court retains jurisdiction to make such modification as it determines may be necessary to have this Order accepted by the Plan. 8. Applicable Law. This Order is issued incident to the Decree of Absolute Divorce and pursuant to the authority of the domestic relations law of the state of [Virginia\Maryland\ ]. _____________________ Judge, Circuit Court for This is a proper order to be signed, ______________________ Domestic Relations Master WE CONSENT TO THIS ORDER: _______________________ Jane/Jon Doe, Plaintiff ___________________ Attorney for Plaintiff __________________ John/Jane Doe, Defendant ___________________ Attorney for Defendant 8THE WORLD BANK/ OFFICE MEMORANDUM DATE: TO: Plan Administrator, Staff Retirement Plan FROM: EXTENSION: SUBJECT: Acknowledgement of Legal Obligation to Pay Spousal Support Pursuant to Section (c) of the Staff Retirement Plan, I hereby acknowledge that I am under a legal obligation to provide Spousal Support to my former spouse or legally separated spouse. This obligation is evidenced and/or imposed by the attached certified order of a court of competent jurisdiction. I acknowledge that the amount specified in the attached order shall be paid directly to _______________ who is my former spouse or legally separated spouse to whom I have a legal obligation of support arising from the marital relationship. ___________________________ [Signature] 9Sharada Sundar Pension Benefits Administrator Dear Retiree: We would like to inform you about the approved amendments made in 1999 to the Staff Retirement Plan that applies to all retired participants. 1) The basis for Cost-of-living Adjustment on pensions paid in dollars has been changed. The regional Washington DC index will be replaced by the broader based national index. United States consumer price index means the consumer price index for all urban consumers, United States city average, all items, as published by the United States of America Department of labor, Bureau of labor Statistics. It should be noted that the Washington consumer price index was replaced by Baltimore-Washington regional index. The use of the national index was considered appropriate as it was consistent with the use of national indices for adjusting pensions paid in currencies other than dollars. Furthermore, the broader based national index can be expected to be less volatile than the regional index. 2) Optional Survivor Annuity for divorced spouses has been added. A retired participant receiving a pension may elect to provide a pension for life in a specified amount to a spouse who was not married to him on the last day of participation, to a former spouse, or to both. The election must be made within 180 days after a final divorce decree is either entered or becomes effective. The election shall become effective as of a date specified in the election that is no earlier than 60 days following the date on which the election is submitted to the Benefits Administrator. The pension shall become effective on the day after the death of the retired participant, and shall be payable to the person for whom such pension was elected and who survives the retired participant. When the election becomes effective, the pension payable to the retired participant shall be reduced. Such election may not be revoked after it becomes effective. If you have any questions regarding the above amendments, please do not hesitate to contact Pension Administration at 202-458-2977. Sharada Sundar Pension Benefits Administrator

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