Time Rule (pensions)

Also known as the Van Loan Formula or the Van Loan Fraction, this is a calculation for determining how much of a pension is community property. The formula is the months the employee-spouse worked toward the pension during the marriage divided by total months the member worked toward building the pension. That number is then divided by half, and the non-employee spouse is awarded that percentage of the pension. For example, say Zane worked as a police officer throughout his 15 years married to Jamie. He worked 20 years total building that pension. The community portion of his pension would be 75%. Dividing that in half, Jamie is entitled to 37.5% of Zane’s pension.