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HUSBAND WAS IN THE NAVY FOR ABOUT NINE YEARS BEFOR MARRIAGE; DURING THE MARRIAGE HE LEFT THE NAVY AND JOINED THE FOREIGN SERVICE WHICH ALLOWED HIM TO “PURCHASE” CREDITS FOR HIS TIME IN THE NAVY TO AUGMENT HIS FOREIGN SERVICE PENSION; THE PORTION OF HIS PENSION ATTRIBUTABLE TO THE PRE-MARRIAGE SERVICE IN THE NAVY IS MARITAL, NOT SEPARATE, PROPERTY (CT APP).

The Court of Appeals, in a full-fledged opinion by Judge Wilson, reversing the Appellate Division, determined the portion of the husband’s pension which stemmed from his pre-marriage service in the Navy was marital, not separate, property:

In this case, a couple used marital funds to augment the husband’s Foreign Service pension so that it included credit for his pre-marriage military service. The issue is whether the portion of the pension related to the pre-marriage military service is separate or marital property. We hold that the portion of the Foreign Service pension related to credit for that service is entirely marital property because marital funds were used to transform the credits into pension rights. * * *

John Szypula joined the Navy in 1987, when he was 22. He and Meredith Szypula were married nine years later. Two years later, in 1998, Mr. Szypula left the Navy. In general, members of the armed services become entitled to retirement pay only after they complete twenty years of service. When Mr. Szypula left the Navy, he was not entitled to military retirement benefits.

From 1998 to 2012, Mr. Szypula worked in the private sector. In 2012, he joined the Foreign Service and enrolled in the Foreign Service Pension System (FSPS). Veterans who join the Foreign Service—like Mr. Szypula—may add their years of military service to their FSPS pensions by making additional contributions for the years they served in the military. Mr. and Ms. Szypula took advantage of this benefit. From 2012 to 2018, a portion of Mr. Szypula’s earnings was withheld to enhance his Foreign Service pension by “buying back” his eleven years of Navy service, at a total cost of $9,158.00. As a result of those payments and his eleven years of Navy service, Mr. Szypula’s FSPS pension will vest sooner and be worth more. Szypula v Szypula, 2024 NY Slip Op 05177, CtApp 10-22-24

 

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