What is the impact on your benefits when you divorce or legally separate from your spouse?

Wisconsin Retirement System	State Group Health Insurance	EPIC Benefits+
Dental Insurance	State Group Life Insurance	UIA Life Insurance
Individual and Family Group Life Insurance	UW Employees Inc. Life Insurance	AD&D Insurance
Employee Reimbursement Account	Tax Sheltered Annuity Program	Wisconsin Deferred Compensation Program
Tax Withholding	Social Security	Vision Insurance

Upon termination of employment, death of the employee, loss of dependent eligibility due to divorce or a child reaching the limiting age, you and your dependents may have the opportunity to continue many of your current benefit plans.

WISCONSIN RETIREMENT SYSTEM (WRS)

You should know. . .

• Division of your WRS account between you and your former spouse upon divorce is permitted but not required.
• Your WRS account can be included in your divorce settlement if the court issues a Qualified Domestic Relations Order (QDRO) directing the Department of Employee Trust Funds to divide your account and your creditable service. Any percent of your account, up to 50%, can be transferred to your former spouse. A new WRS account is created for your ex-spouse, and your service and money balances are reduced accordingly.

What to do. . .

• For more information, see How Divorce Can Affect Your WRS Account (ET-4925) and the form used to divide your account, the Qualified Domestic Relations Order (ET-4926)
• Contact the Department of Employee Trust Funds member services at 608-266-3285 (Madison) or 414-227-4294 (Milwaukee) or toll-free at 877-533-5020.
• Review your beneficiary designation and update it.

 

STATE GROUP HEALTH INSURANCE

You should know. . .

• If you have family health insurance coverage, coverage for your former spouse and stepchildren (other than adopted stepchildren) ends at the end of the month in which the divorce is entered (usually, the month of the hearing).
• You are required to notify your staff benefits office to remove the names of former dependents from your policy. Otherwise, premiums that the University paid for them may become your responsibility.
• Your former spouse and stepchildren may continue the group coverage for 36 months by paying the full premium. Conversion to a private policy is available at the end of 36 months.
• If you have children, you may wish to retain family coverage even if you do not have custody of your children. If you drop family coverage, you may not resume family coverage for these dependents in the future (except by electing family during a future open enrollment period).
• If you were covered under your spouse's health insurance, you have 30 days from the date of the divorce to apply for State Group Health Insurance Program in your own name.

What to do. . .

• Contact your staff benefits office before your hearing to update your coverage.

 

EPIC Benefits+

You should know. . .

What to do. . .

 

DENTAL INSURANCE

Classified employees, faculty and unclassified staff:

You should know. . .

What to do. . .

 

STATE GROUP LIFE INSURANCE

You should know. . .

• If you have Spouse and Dependent coverage, your former spouse's coverage ends on the date the divorce is granted.
• If your ex-spouse has dependent children covered under your insurance, coverage for your step-children ends when your ex-spouse's coverage ends.
• If you have children who remain eligible and covered under Spouse and Dependent coverage, your premium will not change. If you do not, your Spouse and Dependent premiums will end.
• Your former spouse can convert his or her coverage to a private policy.

What to do. . .

• Contact your staff benefits office immediately to update your coverage.
• Review your beneficiary designation and update.
• Contact Minnesota Life Insurance Company, P.O. Box 259708, Madison, WI  53725-9708 for a conversion policy.

 

UNIVERSITY INSURANCE ASSOCIATION (UIA) LIFE INSURANCE

(Unclassified Faculty and Academic Staff only)

Review your beneficiary designation and update.

• Your former spouse will be covered through the end of the month in which the divorce is granted. 

• Contact your staff benefits office immediately to update your coverage.
• Contact Hausmann and Associates, 700 Regent Street, Madison  WI  53715 for conversion options.
• Review your beneficiary designation and update.

• Divorce, annulment, or legal separation is a Change in Status Event. If your own or a dependent's eligibility for medical coverage or your child's day-care provider was affected by the event, you may be eligible to change the amount of your the ERA contribution. See 2012 brochure for more information.

• Complete a Change in Status form within 30 days after the divorce, annulment, or separation is granted.  The form is available from your staff benefits office or from the FBMC office (call 608-829-0435). 

• If your number of dependents has decreased, your federal and state tax withholding should probably increase. You may be subject to tax penalties if you are underwithheld.
• Information on tax aspects of divorce and separation is discussed in IRS Publication 504, Divorced or Separated Individuals, available on the IRS web-site.

What to do. . .

• File a new federal withholding certificate (W-4) with your staff benefits office.
• If you have a Wisconsin withholding agreement on file (form WT-4A), review and up-date.

 

SOCIAL SECURITY

• If your name has changed, notify the Social Security Administration with form SS-5, Application for a Social Security card.

 

VISION INSURANCE

• Your former spouse's coverage will end at the end of the month of the divorce decree or annulment. Your former spouse may continue coverage for up to 18 months by paying the full premium.

• Contact your staff benefits office immediately to update your coverage.

 

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