Ex-Spouse or Current Spouse: Who is Entitled to Survivor Pension Benefits?

Retirement funds can be distributed between spouses as part of property distribution during divorce, and this includes naming one ex-spouse the beneficiary of the other’s survivor pension benefits. In some cases, this process is fairly straightforward; the beneficiary receives the survivor benefits upon the death of the pension plan participant. If the participant remarries, the divorce decree or separation agreement is likely not enough to override statutory guidelines for distributing survivor’s benefits.

A settlement agreement or court order cannot require something to be done if it goes against state law. If there are contradictory or competing provisions in an agreement or order compared to statutory requirements, the statute must be followed.

Wilson v. The City of Providence

In this case, Marilyn Wilson sought survivor benefits from the City of Providence based on a property settlement agreement naming her irrevocable beneficiary of her ex-husband’s pension benefits.

Marilyn and her ex-husband, Milton, divorced in 1998. They entered into a property settlement agreement, which named Marilyn as the irrevocable beneficiary of Milton’s survivor pension benefits through his employment with the Providence Police Department. Milton married Diane Wilson in 2007. When Milton died in 2020, his survivor benefits were paid to Diane.

Marilyn filed a claim against the City and Diane, then Diane filed a crossclaim against the City. They both sought a judgment declaring them entitled to Milton’s surviving spouse pension benefits. Marilyn believed she was entitled because she considered herself a surviving spouse and because she had been named beneficiary of the survivor benefits. Diane believed she should be considered the surviving spouse because she was married to Milton at the time of his death.

Trial Court’s Ruling

The trial court stated that the statute’s plain language must be used to determine the meaning of surviving spouse, and that the law refers to the retiree’s husband or wife by lawful marriage who is surviving or dependent on them upon their death. The court further stated that the term spouse refers to someone who is lawfully married, not previously lawfully married. Diane, not Marilyn, was determined to be Milton’s surviving spouse.

The Appeal

The case was appealed to the Rhode Island Supreme Court, which affirmed the lower court’s ruling. The Court stated that state law defined the terms surviving spouse and dependent spouse as the person lawfully married to the retired plan participant at the time of death. Despite the fact that Marilyn was named the beneficiary in the settlement agreement, Diane was entitled to the benefits based on Rhode Island statute, as the agreement could not supersede state law.

The disposition of pension benefits can be a complex matter, and an experienced family law attorney is a powerful resource to work through such matters. Contact Woodruff Family Law Group for more information and assistance.