Division of A Non-Vested Pension
Under 750 ILCS 5/503 (b) all pension benefits whether vested or non-vested are considered marital property. Specifically, the statute states:
“(2) For purposes of distribution of property pursuant to this Section, all pension benefits (including pension benefits under the Illinois Pension Code [40 ILCS 5/1-101 et seq.], defined benefit plans, defined contribution plans and accounts, individual retirement accounts, and non-qualified plans) acquired by or participated in by either spouse after the marriage and before a judgment of dissolution of marriage or legal separation or declaration of invalidity of the marriage are presumed to be marital property. A spouse may overcome the presumption that these pension benefits are marital property by showing through clear and convincing evidence that the pension benefits were acquired by a method listed in subsection (a) of this Section. The right to a division of pension benefits in just proportions under this Section is enforceable under Section 1-119 of the Illinois Pension Code [40 ILCS 5/1-119].
The value of pension benefits in a retirement system subject to the Illinois Pension Code shall be determined in accordance with the valuation procedures established by the retirement system.
The recognition of pension benefits as marital property and the division of those benefits pursuant to a Qualified Illinois Domestic Relations Order shall not be deemed to be a diminishment, alienation, or impairment of those benefits. The division of pension benefits is an allocation of property in which each spouse has a species of common ownership.” 1
Further, under section 1-119(n) of the Illinois Pension Code, the so-called Hunt formula has been codified. The Hunt formula outlined in In Re Marriage of Hunt states that the marital property of a pension is calculated as the present value of the interest multiplied by a fraction where the numerator is the number of months of marriage over the denominator which is the 1 See 750 ILCS 5/503 (b)(2).
Total number of months during which benefits are accumulated prior to payment. 2 The statute outlines the following:
“(1) The amount of the alternate payee's benefit shall be the result of (A/B) x C x D where: "A" equals the number of months of .... regular/.... regular plus permissive/ .... other [check only one] service that the member accumulated in the Retirement System from the date of marriage ....................... [enter date MM/DD/YYYY] to the date of divorce .................... [enter date MM/DD/YYYY]. This number of months of service shall be calculated as whole months after receipt of information required from the Retirement System pursuant to Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119). "B" equals the number of months of .... regular/.... regular plus permissive/ .... other [check only one] service that the member accumulated in the Retirement System from the time of initial membership in the Retirement System through the member's effective date of retirement. The number of months of service shall be calculated as whole months after receipt of information required from the Retirement System pursuant to Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
"C" equals the gross amount of: (i) the member's monthly retirement benefit (Section III(A)) calculated as of the member's effective date of retirement, .... including/ .... not including/ .... other [check only one] permissive service, upgrades purchased, and other benefit formula enhancements; (ii) the member's refund payable upon termination or lump sum retirement benefit that becomes payable, including any payable interest (Section V(A)) calculated as of the time said refund becomes payable to the member; (iii) the member's partial refund, including any payable interest (Section VI(A)) calculated as of the time said partial refund becomes payable to the member; or (iv) the death benefit payable to the member's death benefit beneficiaries or estate, including any payable interest (Section VII(A)) calculated as of the time said benefit becomes payable to the member's beneficiary; whichever are applicable pursuant to Section III, V, VI, or VII of this Order. These gross amounts shall be provided by the 2 See In Re Marriage of Hunt, 397 N.E.2d 511, 519 (Ill. App. 1979).
Retirement System pursuant to Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119).
"D" equals the percentage noted in Section III(A)(2), V(A)(2), VI(A)(2), or VII(A)(2), whichever are applicable.
(2) The alternate payee's benefit under this Section IX shall be paid in accordance with all Sections of this Order that apply.” 3 3 See ILCS 5/1-119 (n)(IX)