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Donald W. Parkyn provides services in California and Nevada marriage dissolution cases involving the disposition of retirement benefits. These services include both actuarial valuations, to develop a fair value for the community interest in retirement benefits, and the drafting of domestic relation orders involving the disposition of retirement assets. Mr. Parkyn is not an attorney and any drafting performed by him is for guidance only and is to be used with this understanding. Mr. Parkyn does not offer nor is he qualified to provide legal advice.
California case law suggests that the preferred method for the disposition of retirement benefits is on an exchange basis where the employee spouse keeps the retirement and the non-employee spouse takes other community assets of like value, for example, the family home. An actuary has the professional training necessary for the valuation of retirement benefits, however, this knowledge must be combined with an understanding of the family law, most importantly case decisions involving the disposition of retirement benefits in marriage dissolutions.
The actuary, with knowledge of the legal issues pertaining to pension rights, is uniquely qualified to assist in the development of domestic relations orders pertaining to pension rights.
“Non attorneys may assist attorneys in drafting domestic relations orders pertaining to pension rights, however, the attorney must have the overall responsibility for such matters and must make any requisite court appearances. (New York Law Journal, Volume 215 –No.121, June24, 1996).”
The Seventh Circuit Court of Appeals in 1994 considered the problems of a domestic relations lawyers drafting Qualified Domestic Relations Orders (”QDROS”) and concluded:
“It is asking too much of domestic relations lawyers and judges to expect them to dot every ‘i’ and cross every ‘t’ in formulating divorce decrees that have ERISA implications. Ideally, every domestic relations lawyer should be conversant with ERISA, but it is unrealistic to expect all of them to be. We do not think Congress meant to ask the impossible, but the literally, but the humanly, impossible, or to make a suit for legal malpractice the sole recourse of an ERISA beneficiary harmed by a Lawyer’s failure to navigate the treacherous shoals with which the modern state-federal law of employee benefits abounds.” Metropolitan Life Ins Co v. Wheaton (7th Cir., 1994) 52 F.3d 1080]
In complex situations, the proper disposition of retirement benefits upon dissolution of marriage is a may represent a complex, multi-disciplined problem involving both legal and actuarial considerations. In such cases the involvement of a specialist, such as Barbara A. DiFranza, a California Certified Family Law Specialist who limits her practice to the disposition of retirement benefits in complex marriage dissolutions, should be considered.
An attorney has a duty to obtain the services of a competent specialist if the task goes beyond his/her expertise. Some of the actuarial and legal issues to be taken into consideration are discussed under actuarial and legal considerations.
Mr. Parkyn’s career includes 15 years as a staff actuary for CalPERS. Based on this experience, Mr. Parkyn has special insight into the problems involved in the disposition of public sector retirement plans such as CalPERS, CalSTRS, NevadaPERS, University of California, California County and City Plans, Military, Military Reserve, CSRS and FERS plans. Governmental plans are not, with minor exceptions, covered under ERISA and different rules exist for the drafting of retirement disposition orders. An important issue under governmental plans is discussed under survivor and optional benefits.
Additional information on CalPERS can be found at CalPERS.
Additional information of CSRS/FERS can be found at CSRS/FERS
“Summary of Cases” QDRO Cases
Donald W. Parkyn
5366 Ventana Pkwy
Reno, NV 89511
Cell: 775-636-5600
Fax: 775-201-0031
Email: parkyn@justpensions.com