Herald v. Steadman

The parties were married for 21 years. At the time of trial, husband was 51 and wife was 53. Husband was a practicing attorney with the Army Corps of Engineers. Wife worked at the Bonneville Power Administration. Both parties were beneficiaries of federal retirement benefits. Because wife was eligible for Civil Service Retirement System (CSRS) benefits, she was not eligible for Social Security benefits based on her own employment. Husband's civilian federal employment was under the Federal Employees Retirement System (FERS) and subject to Social Security taxes. The question presented in this case was whether federal law forbid a division of property by which the value of retirement benefits belonging to the nonparticipating spouse is reduced by the present value of hypothetical Social Security benefits to which that spouse would have been entitled if she had been a Social Security participant. Because the Supreme Court concluded that the trial court did not violate federal law by "considering" Social Security benefits in that way, it affirmed that court's decision. View "Herald v. Steadman" on Justia Law