City of Los Angeles
Deferred compensation (457) division guide
How alternate-payee orders typically work for the City's supplemental deferred compensation program—not the same as your LACERS pension benefit.
What this plan is
The City of Los Angeles Deferred Compensation Plan is a supplemental retirement savings program for eligible City employees, commonly structured as a governmental section 457(b) arrangement. It is not the same thing as your LACERS pension allowance—pension and deferred comp are separate benefits with separate administrators and plan documents.
Governance, disclosures, and member resources for the deferred compensation program are published by the City (e.g. 457.lacity.gov). Always use the current plan document, SPD, and plan forms when drafting or reviewing an order.
Why the distinction matters
Orders must match the correct plan. A judgment that only mentions “LACERS” may not be enough to divide deferred compensation accounts if the DCP is a separate legal plan. Your domestic relations order should name the plan and follow the administrator's instructions.
Divorce and domestic relations orders
Governmental plans are not governed by ERISA the same way as a typical private-sector 401(k). That said, federal tax rules still govern tax-deferred accounts, rollovers, and when benefits may be paid to an alternate payee. Your order should be written so the plan can administer it without violating tax qualification or plan terms.
Division is usually expressed as a percentage or fraction of the account, or sometimes a specified dollar amount, subject to vesting, loans, investment gains/losses, and the plan's valuation date rules.
Practical checklist
- Identify the exact plan name and obtain the plan's model order or checklist, if offered.
- Confirm vesting and whether any portion of the account is not assignable under the plan.
- Address outstanding loans if they affect the account balance the plan will split.
- Ask whether pre-approval of a draft order is required before final court filing.
- Joinder: many defined contribution plans (including many 457(b) programs) do not require a joinder; confirm with this plan and your court's local rules—see our joinders guide.
Disclaimer
This page is general educational information, not legal or tax advice. Plans, forms, and procedures change. Confirm all requirements with the plan administrator, your attorney, and the court.
Ready to start your intake?
QDROdl walks you through plan selection and generates plan-aware draft language for supported systems. In intake, choose the option that matches your employer's deferred compensation program (City vs County differs—confirm with counsel).