Should the Former Spouse receive a prorata share of any Cost-of-Living Adjustment?
Cost-of-living adjustments are small incremental increases which keep a retiree in line with inflation. They are typically given every year and dictated by the government. These are increases in retirement benefits after retirement, and should not be confused with cost-of-living increases in salary received while still working. In some states case law has established that if a spouse is awarded a portion of the employee’s pension, and that pension is subject to cost-of-living increases, then the spouse is also awarded a portion of such cost-of-living increases. However, in many cases this issue is not dictated by case law and should be decided by the parties during their settlement. Section 11 After benefits commence, if the Former Spouse predeceases the Employee the Former Spouse’s share shall: Option #1 – Be immediately and fully restored to the Employee – This means that if the Former Spouse dies before receiving benefits from CSRS or FERS, the benefits the Former Spouse would have