Hayward v. Office of Personnel Management

578 F.3d 1337, 2009 U.S. App. LEXIS 18897, 2009 WL 2581359
Court of Appeals for the Federal Circuit·Decided August 24, 2009·No. 2008-3308·Published·Cited by 7 cases

Opinion

SCHALL, Circuit Judge.

Linda L. Hayward (“Ms. Hayward”) petitions for review of the final decision of the Merit Systems Protection Board (“Board”), which affirmed the reconsideration decision of the Office of Personnel Management (“OPM”) finding the Qualified Domestic Relations Order (“QDRO”) submitted by Ms. Hayward’s attorney unacceptable for processing and denying Ms. Hayward a former spouse survivor annuity under the Civil Service Retirement System (“CSRS”). Hayward v. Office of Pers. Mgmt., 109 M.S.P.R. 13 (2008) (“Final Decision”). Because we conclude that the QDRO, which Ms. Hayward’s attorney submitted to OPM, meets the requirements set forth in 5 U.S.C. § 8341(h)(1) and 5 C.F.R. § 838.803, we conclude that Ms. Hayward is entitled to have OPM process the QDRO with respect to her claimed former spouse survivor annuity. We therefore reverse the decision of the Board.

BACKGROUND

I.

Ms. Hayward is the former spouse of Jack N. Hayward (“Mr. Hayward”). The Haywards were married in 1963, were separated in 1984, and divorced in 1986. Mr. Hayward served on active duty, with both the U.S. Army and U.S. Navy, and was later a member of the Army Reserves. Hayward v. Office of Pers. Mgmt., No. PH-0831-07-0512-1-1, slip op. at 2 (M.S.P.B. Nov.6, 2007) (“Initial Decision ”). In addition, in 1966, Mr. Hayward began working in the first of several Civil Service positions with the Army. He retired from his final Civil Service position, Equipment Specialist for the U.S. Army Corps of Engineers, in 1996. Final Decision, 109 M.S.P.R. at 15.

On January 11, 1989, the Haywards signed a consent order in the Court of Common Pleas — Family Division, in Allegheny County, Pennsylvania (“Court of Common Pleas”), dividing their marital property. Pursuant to that order, on March 26, 1990, the Court of Common *1340 Pleas signed two QDROs, one addressing Mr. Hayward’s military pension (the “1990 Military QDRO”), and one addressing his civil service pension (the “1990 Civil Service QDRO”). While largely identical, the two orders differ in certain respects. The 1990 Civil Service QDRO recites that Mr. Hayward “was employed by the Department U.S. Army [sic] and is a participant in the Civilian [sic] Service Retirement Plan,” whereas the 1990 Military QDRO recites that Mr. Hayward “was employed by the U.S. Army Reserves and is a participant in the Military Retired Pay Plan.” Both orders indicate the retirement plans covered. The 1990 Civil Service QDRO states “[t]he Plan to which this Order applies is the Civil Service Retirement System Pension Plan in which Jack Hayward is a participant,” while the 1990 Military QDRO specifies “[t]he Plan to which this Order applies is the Military Retired Pay Plan pension plan in which Jack Hayward is a participant.” The 1990 Civil Service QDRO requires that the parties notify the “Civilian [sic] Service Retirement Plan Administrator” of address changes; the 1990 Military QDRO requires that the parties notify the “Military Retired Pay Plan Pension Fund Administrator” of such changes. Both QDROs provide that Ms. Hayward be paid a share of Mr. Hayward’s retirement benefits. The QDROs also provide that the parties should submit the orders to the administrators of the respective retirement plans.

As far as survivor annuities are concerned, both orders state that “[i]n the event that the Participant is eligible for the Survivor Benefit Plan provided pursuant to Title 10 U.S.C. Section 1447, and 1448 et seq., the Participant shall select the survivor benefit form which pays the largest monthly benefit to the survivor.” Notably, 10 U.S.C. § 1447 governs surviv- or benefit plans for armed forces members. At the same time, although Mr. Hayward’s CSRS benefits are governed by Title 5, neither of the QDROs makes any mention of provisions in that title. Both orders do provide, however, that “[t]he survivor benefit chosen shall be at least 50% of the benefit provided to the Participant during the Participant’s life.”

II.

Shortly after the entry of the orders, the 1990 Military QDRO was submitted to the Defense Finance and Accounting Service (“DFAS”) for processing. Hayward v. Hayward, 919 A.2d 980, 2007 WL 1040485 (Pa.Super.Ct. Jan. 18, 2007) (Table, nonprecedential) (“Pa. Court Opinion ”). Ms. Hayward also contends that, around that same time, her attorney submitted the 1990 Civil Service QDRO to OPM for processing. However, the record before us only shows that, on March 28, 1990, Ms. Hayward’s attorney submitted the 1990 Civil Service QDRO to the Civilian Personnel Office of the Army. DFAS found the 1990 Military QDRO unacceptable for processing. As a result, Ms. Hayward’s attorney prepared another military QDRO, which was entered by the Court of Common Pleas on May 31, 1995 (the “1995 Military QDRO”). This QDRO was subsequently accepted by DFAS. Id. at 3.

In 2001, Mr. Hayward filed a motion for special relief, requesting a modification of the 1995 Military QDRO. Pa. Court Opinion, slip op. at 3. During the resulting proceedings, a hearing officer for the Court of Common Pleas discovered that Mr. Hayward had retired from his Civil Service position in 1996, and had “surreptitiously placed his civil service pension into pay status” at the time of retirement. 1 Id. *1341 Accordingly, the court ordered Mr. Hayward to begin paying Ms. Hayward 30% of each monthly CSRS benefit, “plus an additional $500 per month” in arrears payments for the period between his 1996 retirement and when it was discovered he had been receiving an annuity. Id. at 4.

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Hayward v. Office of Personnel Management, 578 F.3d 1337, 2009 U.S. App. LEXIS 18897, 2009 WL 2581359 (Fed. Cir. 2009).

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