A form of settlement that requires a Domestic Relations Order. The Alternate Payee must generally wait until the actual retirement of the employee to collect his or her pension benefit. It is possible for an Alternate Payee to begin collecting a benefit at the employee’s Earliest Retirement Age. Alternate Payee’s are strongly cautioned against beginning to collect prior to the earlier of the employee’s normal retirement age or actual retirement. Reason: Under the federal pension a substantial actuarial reduction will be imposed on the Alternate Payee’s pension benefit.