Understanding State Pension Division in Divorce: What is the Annuity Savings Account?

Dividing a state pension in divorce can be tricky. Not many divorce professionals fully understand what should be considered when dividing a state pension and major mistakes can be made that will affect both parties. In MA, state employees have an annuity savings account which is the account where the employee’s mandatory contributions go. This account is used to help fund their future pension benefit in retirement and cannot be accessed or divided while the employee is still employed by the state. Unfortunately, many mistakes are made with regards to this account when accounting for and dividing retirement assets in divorce. These mistakes can have devastating financial implications for the owner of the pension.