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Rosales v. Rosales8/22/2005
FOR PUBLICATION
BURNS, C.J., LIM AND FUJISE, JJ.
Plaintiff-Appellant Suzanne Marie Rosales (Suzanne) appeals from the February 13, 2004 Order Granting Defendant Arnold G. Rosales, Jr.'s Motion for Issuance of Domestic Relations Order Filed on January 6, 2004 (February 13, 2004 Order), entered by Judge Bode Uale. We affirm in part, vacate in part, and remand with instructions.
BACKGROUND
The September 22, 1986 Decree Granting Absolute Divorce and Awarding Child Custody (Divorce Decree) terminating the marriage of Suzanne and Defendant-Appellee Arnold G. Rosales, Jr. (Arnold) states, in relevant part, as follows:
C. PENSION RETIREMENT PAY
[Arnold] has submitted himself to the jurisdiction of the Family Court of the First Circuit of the State of Hawaii to make binding orders dividing the interests the parties have in the retirement benefits which have been accumulated during the marriage of the parties.
Upon [Arnold's] retirement from the State Farm Insurance Company, [Suzanne] shall receive in the form of an allotment made payable directly to [Suzanne] from the Program Administrator a percentage of [Arnold's] gross retirement pay. Said percentage shall be determined according to a formula of 20/N x 0.5 = X where N = the number of years [Arnold] is credited with at retirement for retirement pay purposes.
As an example, if [Arnold] retires and is credited with twenty-four (24) years of service for retirement purposes, [Suzanne] shall be entitled to 41.66% of said retirement pay computed as follows:
20/24 = 0.8333 x 0.5 = 41.66%
As an additional example, if [Arnold] retires and is credited with twenty-six and one-half (26 1/2) years of service for retirement pay purposes, [Suzanne] shall be entitled to 37.74% of said retirement pay computed as follows:
20/26.5 = 0.7547 x 0.5 = 37.74%
The Court reserves jurisdiction to make appropriate allocation if the tax consequences are other than as contemplated.
On January 6, 2004, Arnold filed a motion for the issuance of a domestic relations order. The "Memorandum in Support of Motion" states, in relevant part, as follows:
After approximately 31 years of service at State Farm Insurance Company, [Arnold] was given an opportunity to take a severance package and was offered a State Farm Insurance Companies Early Retirement Severance Compensation Plan which, in addition to his normal retirement pay, included two (2) severance incentives: (1) an Early Retirement Incentive Enhancement and (2) a Social Security Supplement.
The Early Retirement Incentive Enhancement provided [Arnold] with, among other things, retirement enhancement pay, an additional 4 years of credited service and 3 years of age (for purposes of the early retirement reduction.
The Social Security Supplement is a monthly payment equal to the estimated monthly Social Security old age benefits [Arnold] would be receiving at age 62. This benefit would end when [Arnold] reached 62 years of age; the same time [Arnold] would begin to receive Social Security benefits.
With regards to his retirement benefits plan, [Arnold] opted to receive "Life Income with Ten Years Certain." This option allowed [Arnold] to receive retirement benefits for his lifetime; however, if he were to die before ten years had passed since first receiving benefits, [Arnold's] named beneficiary would receive the same amount of money for the remainder of the ten year period.
On July 1, 2003, [Arnold] officially retired at the age of 57.
On or about August 6, 2003, [Arnold] received a lette
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