Retirement Equity Act

The Retirement Equity Act, passed in 1984, enhances the rights of spouses in retirement benefits and pensions. It ensures that when couples divorce, the non-working spouse can receive a fair share of the working spouse's retirement savings. Key provisions include the requirement that pension plans honor Qualified Domestic Relations Orders (QDROs), which allocate retirement benefits in divorce settlements. The Act aims to protect the financial security of individuals, particularly women, who may have lower lifetime earnings and need access to retirement funds post-divorce. Overall, it promotes equity in retirement benefits distribution during marital separations.