Question 1

What is a (Q)DRO?

Accepted Answer

"QDRO" is a broad term used by many to mean any type of court order to specifically divide a retirement account or pension benefit. "QDRO" stands for Qualified Domestic Relations Order.  
 
Technically, a "QDRO" is the name of a Domestic Relations Order that divideds a "qualifed" retiremed plan as defined by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code.
 
A "Domestic Relations Order" is any judgment, decree, or order (including approval of a property settlement agreement) that (1) relates to the provision of child support, alimony payment, or marital property rights to a spouse, former spouse, child or other dependent of a participant, and (2) is made pursuant to a state domestic relations law (including community property law).
 
The QDRO Company will know what type of Domestic Relations Order is needed.

Question 2

What should I expect... from start to finish?

Accepted Answer

Please review the QDRO Process.

Question 3

What is a defined contribution plan?

Accepted Answer

A plan qualified under ERISA and the IRC that provides for contributions directly to individual accounts established and maintained for each plan participant. The contributions may consist of either employee or employer contributions or both. The participant is generally entitled to receive the account balance (together with any interest accrued thereon as well as investment gains and/or losses) when the employee retires or otherwise terminates employment with the company. There are several types of defined contribution plans, including profit sharing plans, thrift plans, 401(k) plans, retirement savings plan, stock bonus plans, and employee stock ownership plans (ESOPs).

Question 4

What is a defined benefit pension plan?

Accepted Answer

Pension plan qualified under ERISA and the IRC that provides a specific pre-determinable amount of benefits to a participant at the individual’s projected date of retirement. Normally, the benefits are based on a formula that incorporates the participant’s projected years of service and final average compensations. Defined benefit plan is required to be funded on an ongoing basis in accordance with actuarial principles enumerated in ERISA and the IRC. A participant’s benefits under a defined benefit pension plan are referred to as accrued benefits.

Question 5

How long will this take?

Accepted Answer

Once we have all the information we need to draft a QDRO, the drafting of the (Q)DRO itself will take approximately 10-14 business days.

You should except the entire process to take 45-60 days, at minimum.
 
For more information, please visit the QDRO Process page under Learning Resources.

Question 6

Who is the Participant?

Accepted Answer

The Participant is the person in whose name the retirement plan is titled.

Question 7

How do we get started identifying the retirement benefits in the case?

Accepted Answer

At minimum, request statements for each retirement plan in which a party has an interest.  You may also want to request the plan participant to provide the Summary Plan Description ("SPD") for each retirement plan being divided.  The SPD is a detailed guide to the benefits the program provides and how the plan works.

Question 8

What is a (Q)DRO?

Accepted Answer

"QDRO" is a broad term used by many to mean any type of court order to specifically divide a retirement account or pension benefit. "QDRO" stands for Qualified Domestic Relations Order.  
 
Technically, a "QDRO" is the name of a Domestic Relations Order that divideds a "qualifed" retiremed plan as defined by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code.
 
A "Domestic Relations Order" is any judgment, decree, or order (including approval of a property settlement agreement) that (1) relates to the provision of child support, alimony payment, or marital property rights to a spouse, former spouse, child or other dependent of a participant, and (2) is made pursuant to a state domestic relations law (including community property law).
 
The QDRO Company will know what type of Domestic Relations Order is needed.

Question 9

Who is the Alternate Payee?

Accepted Answer

The alternate payee is any spouse, former spouse, child, or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant.

Question 10

Who is the Plan Administrator?

Accepted Answer

The Plan Administrator is the individual or entity designated in the retirement plan documents (i.e., the Summary Plan Description) as the administrator of the plan.  The Plan Administrator is responsible for determining whether a domestic relations order is a QDRO.
The Plan Administrator will follow certain established procedures in order to approve or reject a proposed (Q)DRO and will administer distributions to both the plan participant and alternate payee pursuant to the terms of an approved QDRO. 
The Plan Administrator can reject the (Q)DRO and not honor the benefits awarded to the Alternate Payee until the Plan Administrator receives a (Q)DRO deemed to be acceptable in form and content. 
All (Q)DROs are subject to the provisions of the retirement plan to which the Order will apply.

Question 11

What is a defined contribution plan?

Accepted Answer

A plan qualified under ERISA and the IRC that provides for contributions directly to individual accounts established and maintained for each plan participant. The contributions may consist of either employee or employer contributions or both. The participant is generally entitled to receive the account balance (together with any interest accrued thereon as well as investment gains and/or losses) when the employee retires or otherwise terminates employment with the company. There are several types of defined contribution plans, including profit sharing plans, thrift plans, 401(k) plans, retirement savings plan, stock bonus plans, and employee stock ownership plans (ESOPs).

Question 12

What documents should I be gathering during discovery?

Accepted Answer

An account statement for each defined contribution plan.
A benefit statement dated within the last year for each defined benefit plan.
 
You need the full legal name of the plan being divided in order to reference it properly in the parties' divorce decree or settlement agreement.  A screen shot is likely not going to provide all of the information you need to appropriately identify the retirement plan.

Question 13

Who is the Participant?

Accepted Answer

The Participant is the person in whose name the retirement plan is titled.

Question 14

What is a defined contribution plan?

Accepted Answer

A plan qualified under ERISA and the IRC that provides for contributions directly to individual accounts established and maintained for each plan participant. The contributions may consist of either employee or employer contributions or both. The participant is generally entitled to receive the account balance (together with any interest accrued thereon as well as investment gains and/or losses) when the employee retires or otherwise terminates employment with the company. There are several types of defined contribution plans, including profit sharing plans, thrift plans, 401(k) plans, retirement savings plan, stock bonus plans, and employee stock ownership plans (ESOPs).

Question 15

Who is the Alternate Payee?

Accepted Answer

The alternate payee is any spouse, former spouse, child, or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant.

Question 16

What is a defined contribution plan?

Accepted Answer

A plan qualified under ERISA and the IRC that provides for contributions directly to individual accounts established and maintained for each plan participant. The contributions may consist of either employee or employer contributions or both. The participant is generally entitled to receive the account balance (together with any interest accrued thereon as well as investment gains and/or losses) when the employee retires or otherwise terminates employment with the company. There are several types of defined contribution plans, including profit sharing plans, thrift plans, 401(k) plans, retirement savings plan, stock bonus plans, and employee stock ownership plans (ESOPs).

Question 17

How long will this take?

Accepted Answer

If we have all the information we need to draft a QDRO, the drafting of the (Q)DRO itself will take approximately 10-14 business days. If we are not provided with all the information we need, the process can be much longer – sometimes as much as 6-8 weeks.
 
However, after our part is complete, the QDRO then has to be signed, entered with the Court for the Judge to sign and then sent to the Plan for approval.  The timing of this is out of our control.  
 
Anticipate the entire process from drafting to approval to take 45-60 days, at minimum.

Question 18

Can a QDRO be prepared before a divorce is finalized?

Accepted Answer

In many cases, we are engaged to prepare a QDRO after the divorce has been finalized. However, this can result in costly delays (both emotional and financial), and in extreme cases loss of benefits. We encourage attorneys to prepare or have the QDRO(s) prepared once a settlement has been reached, so that the document(s) can be signed and entered with the Divorce Decree or Settlement Agreement. It is generally much easier to get the participant’s signature on the QDRO and the Divorce Decree at the same time. After the Divorce Decree or Settlement Agreement has been finalized, many participants can be difficult to locate.
If the Divorce Decree is finalized without the completion of a QDRO, and the participant dies before a QDRO can be entered and accepted, an alternate payee’s awarded benefit may be forfeited or at the very least require further action to determine whether the alternate payee may receive his/her benefit.

Question 19

Who files the (Q)DRO with the Court?

Accepted Answer

If you are represented by the attorney, you or your attorney will be responsible for filing the Order with the appropriate court and submitting the court-executed QDRO to the plan administrator for final approval and administration. We will provide the appropriate contact information to assist you.
If you are not represented by an attorney and both parties will willing sign the (Q)DRO document, for an additional fee we can assist you with filing the (Q)DRO with the court and forwarding the court-entered (Q)DRO to the plan.

Question 20

Who is the Plan Administrator?

Accepted Answer

The Plan Administrator is the individual or entity designated in the retirement plan documents (i.e., the Summary Plan Description) as the administrator of the plan.  The Plan Administrator is responsible for determining whether a domestic relations order is a QDRO.
The Plan Administrator will follow certain established procedures in order to approve or reject a proposed (Q)DRO and will administer distributions to both the plan participant and alternate payee pursuant to the terms of an approved QDRO. 
The Plan Administrator can reject the (Q)DRO and not honor the benefits awarded to the Alternate Payee until the Plan Administrator receives a (Q)DRO deemed to be acceptable in form and content. 
All (Q)DROs are subject to the provisions of the retirement plan to which the Order will apply.

Question 21

When can I expect to get my money?

Accepted Answer

It depends on the plan.
In general, 401(k)-type plans pay out as soon as administratively feasible after the court-entered (Q)DRO is approved by the Plan.  Once the Plan has a copy of the court-entered (Q)DRO, it can take an average of 30-60 days for the Plan to approve the (Q)DRO.
Pension plans are different.  If the Participant is not "in pay" status, the pension payments won't start until the Participant reaches a particular retirement age.  If the Participant is already collecting his/her pension, payments to the Alternate Payee will typically begin the month after they Plan has approved the court-entered (Q)DRO.
After service of the court-entered (Q)DRO to the Plan, the Alternate Payee should contact the Plan directly for further information regarding implementation of the (Q)DRO.   Please allow a few weeks for the Plan to process the request for implementation.   If you do NOT hear from the Plan within 90 days from the date the court-entered (Q)DRO is sent to the Plan, you should contact the Plan directly.  If our firm does not hear from either party within 90 days, we will assume that the (Q)DRO has received final approval from the Plan and has been implemented.

Question 22

Who files the (Q)DRO with the Court?

Accepted Answer

If you are represented by the attorney, you or your attorney will be responsible for filing the Order with the appropriate court and submitting the court-executed QDRO to the plan administrator for final approval and administration. We will provide the appropriate contact information to assist you.
If you are not represented by an attorney and both parties will willing sign the (Q)DRO document, for an additional fee we can assist you with filing the (Q)DRO with the court and forwarding the court-entered (Q)DRO to the plan.

Question 23

What is a defined benefit pension plan?

Accepted Answer

Pension plan qualified under ERISA and the IRC that provides a specific pre-determinable amount of benefits to a participant at the individual’s projected date of retirement. Normally, the benefits are based on a formula that incorporates the participant’s projected years of service and final average compensations. Defined benefit plan is required to be funded on an ongoing basis in accordance with actuarial principles enumerated in ERISA and the IRC. A participant’s benefits under a defined benefit pension plan are referred to as accrued benefits.

Question 24

I signed the (Q)DRO, but the other party hasn’t.  What happens?"

Accepted Answer

If the other party is non-responsive to requests for signature, you will have to seek legal assistance.  We have several names of highly qualified and skilled attorneys we can provide you.

Question 25

What is a defined benefit pension plan?

Accepted Answer

Pension plan qualified under ERISA and the IRC that provides a specific pre-determinable amount of benefits to a participant at the individual’s projected date of retirement. Normally, the benefits are based on a formula that incorporates the participant’s projected years of service and final average compensations. Defined benefit plan is required to be funded on an ongoing basis in accordance with actuarial principles enumerated in ERISA and the IRC. A participant’s benefits under a defined benefit pension plan are referred to as accrued benefits.

Question 26

When can I expect to get my money?

Accepted Answer

It depends on the plan.
In general, 401(k)-type plans pay out as soon as administratively feasible after the court-entered (Q)DRO is approved by the Plan.  Once the Plan has a copy of the court-entered (Q)DRO, it can take an average of 30-60 days for the Plan to approve the (Q)DRO.
Pension plans are different.  If the Participant is not "in pay" status, the pension payments won't start until the Participant reaches a particular retirement age.  If the Participant is already collecting his/her pension, payments to the Alternate Payee will typically begin the month after they Plan has approved the court-entered (Q)DRO.
After service of the court-entered (Q)DRO to the Plan, the Alternate Payee should contact the Plan directly for further information regarding implementation of the (Q)DRO.   Please allow a few weeks for the Plan to process the request for implementation.   If you do NOT hear from the Plan within 90 days from the date the court-entered (Q)DRO is sent to the Plan, you should contact the Plan directly.  If our firm does not hear from either party within 90 days, we will assume that the (Q)DRO has received final approval from the Plan and has been implemented.

Question 27

What is a defined benefit pension plan?

Accepted Answer

Pension plan qualified under ERISA and the IRC that provides a specific pre-determinable amount of benefits to a participant at the individual’s projected date of retirement. Normally, the benefits are based on a formula that incorporates the participant’s projected years of service and final average compensations. Defined benefit plan is required to be funded on an ongoing basis in accordance with actuarial principles enumerated in ERISA and the IRC. A participant’s benefits under a defined benefit pension plan are referred to as accrued benefits.

Question 28

I signed the (Q)DRO, but the other party hasn’t.  What happens?"

Accepted Answer

If the other party is non-responsive to requests for signature, you will have to seek legal assistance.  We have several names of highly qualified and skilled attorneys we can provide you.

Question 29

Why are you sending the (Q)DRO to the Plan for conditional pre-approval? And how long will it take?

Accepted Answer

We recommend obtaining preapprovals whenever possible in case the Plan Administrator requires any edits to the proposed (Q)DRO before filing it with the court.  Not all plans will provide a pre-approval; we will let you know if it's not an option.  Any proposed (Q)DRO we forward you will be ready for court entry in the event you do not want to wait for the plan to pre-approve the draft. 
We find that most Plan Administrators are able to respond to our request for a pre-approval within 30 to 60 days. However there are some Plans that will require additional time.

Question 30

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 31

The (Q)DRO was signed by everyone, now what?"

Accepted Answer

The proposed (Q)DRP needs to be entered with the applicable court for the judge to sign.  If you are not seeking assistance from your attorney or us to facilitate this, we recommend you contact the court for instructions, including how many copies you need to provide them in order to receive a signed copy.
 
It can take the court an average of 14-30 days to return a certified copy to you.

Question 32

Why are you sending the (Q)DRO to the Plan for conditional pre-approval? And how long will it take?

Accepted Answer

We recommend obtaining preapprovals whenever possible in case the Plan Administrator requires any edits to the proposed (Q)DRO before filing it with the court.  Not all plans will provide a pre-approval; we will let you know if it's not an option.  Any proposed (Q)DRO we forward you will be ready for court entry in the event you do not want to wait for the plan to pre-approve the draft. 
We find that most Plan Administrators are able to respond to our request for a pre-approval within 30 to 60 days. However there are some Plans that will require additional time.

Question 33

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 34

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 35

The (Q)DRO was signed by everyone, now what?"

Accepted Answer

The proposed (Q)DRP needs to be entered with the applicable court for the judge to sign.  If you are not seeking assistance from your attorney or us to facilitate this, we recommend you contact the court for instructions, including how many copies you need to provide them in order to receive a signed copy.
 
It can take the court an average of 14-30 days to return a certified copy to you.

Question 36

What happens after the (Q)DRO has been entered by the Court?

Accepted Answer

Once the filed (Q)DRO is returned to you, your attorney or to us (if we are assisting you with this step of the process), a certified copy of the (Q)DRO must then be forwarded to the Plan Administrator.  Instructions for where to forward a court-entered (Q)DRO will be included in the instructions provided to you in the (Q)DRO Packet we put together.

Question 37

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 38

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 39

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 40

Does The QDRO Company pay me my money?

Accepted Answer

No. Any payments to an Alternate Payee are paid by the Plan Administrator.

Question 41

What happens after the (Q)DRO has been entered by the Court?

Accepted Answer

Once the filed (Q)DRO is returned to you, your attorney or to us (if we are assisting you with this step of the process), a certified copy of the (Q)DRO must then be forwarded to the Plan Administrator.  Instructions for where to forward a court-entered (Q)DRO will be included in the instructions provided to you in the (Q)DRO Packet we put together.

Question 42

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 43

What is the Participant’s accrued benefit under a defined benefit plan?

Accepted Answer

This refers to the amount of benefits that a participant has earned under a defined benefits pension plan as of any particular date and is usually stated in terms of a monthly pension annuity. It is generally based on the employee’s years of service with the company and his/her final average compensation as of the calculation date.

Question 44

What is a vested accrued benefit?

Accepted Answer

The accrued benefit in which the plan participant is vested based on the individual’s years of vesting service with the company. Normally, a plan participant becomes fully vested in pension benefits after five years of service. However, some pension plans use a graded vesting schedule in which a participant’s vesting percentage increases each year until it reaches 100 percent. Under current law, a plan participant must be fully vested in the accrued benefit after no later than seven years of vesting service. The participant’s vested accrued benefit refers to the portion of benefits the participant has a non-forfeitable right to receive under the plan.

Question 45

Does The QDRO Company pay me my money?

Accepted Answer

No. Any payments to an Alternate Payee are paid by the Plan Administrator.

Question 46

Why should I get a QDRO now? Why can't I wait until my former spouse retires or until I need the money?

Accepted Answer

If you delay in obtaining a (Q)DRO, you may lose valuable rights and run the risk of forfeiting all of the benefits awarded to you in your divorce. Your rights may be lost if your former spouse does any of the following before your QDRO is submitted to the pension plan and accepted by the plan:
Retires
Remarries
Dies
Quits or is fired
Withdraws funds from the Plan before retirement
Takes out a loan secured by the Plan account

Question 47

What is a vested accrued benefit?

Accepted Answer

The accrued benefit in which the plan participant is vested based on the individual’s years of vesting service with the company. Normally, a plan participant becomes fully vested in pension benefits after five years of service. However, some pension plans use a graded vesting schedule in which a participant’s vesting percentage increases each year until it reaches 100 percent. Under current law, a plan participant must be fully vested in the accrued benefit after no later than seven years of vesting service. The participant’s vested accrued benefit refers to the portion of benefits the participant has a non-forfeitable right to receive under the plan.

Question 48

What is meant by the earliest retirement age?

Accepted Answer

The age at which a plan participant may first commence pension benefits under the provisions of the plan. Normally, benefits payable to someone before normal retirement age are actuarially reduced to reflect the earlier commencement of benefits.

Question 49

Can I receive a cash distribution from the plan?

Accepted Answer

This depends on the type of plan involved. 401(k), 403(b) and 457 Plans (also known as Defined Contribution Plans), IRA's, ESOP's and Thrift Savings Plans usually permit cash distributions. Most pension plans (also known as Defined Benefit Plans) and military and federal civil service plans only permit monthly payments, not lump sums. A QDRO cannot override the terms of the plan itself which specify the form in which payments can be made.

Question 50

Why should I get a QDRO now? Why can't I wait until my former spouse retires or until I need the money?

Accepted Answer

If you delay in obtaining a (Q)DRO, you may lose valuable rights and run the risk of forfeiting all of the benefits awarded to you in your divorce. Your rights may be lost if your former spouse does any of the following before your QDRO is submitted to the pension plan and accepted by the plan:
Retires
Remarries
Dies
Quits or is fired
Withdraws funds from the Plan before retirement
Takes out a loan secured by the Plan account

Question 51

What is meant by the earliest retirement age?

Accepted Answer

The age at which a plan participant may first commence pension benefits under the provisions of the plan. Normally, benefits payable to someone before normal retirement age are actuarially reduced to reflect the earlier commencement of benefits.

Question 52

What is meant by the earliest retirement age?

Accepted Answer

The age at which a plan participant may first commence pension benefits under the provisions of the plan. Normally, benefits payable to someone before normal retirement age are actuarially reduced to reflect the earlier commencement of benefits.

Question 53

Can I receive a cash distribution from the plan?

Accepted Answer

This depends on the type of plan involved. 401(k), 403(b) and 457 Plans (also known as Defined Contribution Plans), IRA's, ESOP's and Thrift Savings Plans usually permit cash distributions. Most pension plans (also known as Defined Benefit Plans) and military and federal civil service plans only permit monthly payments, not lump sums. A QDRO cannot override the terms of the plan itself which specify the form in which payments can be made.

Question 54

Do IRAs require a QDRO?

Accepted Answer

Technically, an IRA is not a "qualified" retirement plan. 
In most cases, the custodian only requires a certified copy of the Divorce Decree, which clearly identifies the IRA to be divided (i.e. name of the custodian and the account number), the award, and the identity of the parties. In many cases, this, along with transfer forms provided by the custodian is sufficient to divide the IRA. However, sometimes the custodian may request a QDRO.
In some cases, the custodian may request a letter of instruction, which is a letter that describes the assignment in more detail and is signed by both parties.
We recommend a call to the account representative or custodian to determine what is required.

Question 55

What is meant by the earliest retirement age?

Accepted Answer

The age at which a plan participant may first commence pension benefits under the provisions of the plan. Normally, benefits payable to someone before normal retirement age are actuarially reduced to reflect the earlier commencement of benefits.

Question 56

What are matching employer contributions?

Accepted Answer

Contributions made to a defined contribution benefit plan, such as a 401(k) Retirement Savings Plan, by the employer based on a certain percentage of the employee’s own contribution. For example, an employer may contribute 50 cents on the dollar for each dollar which an employee contributes to the plan on a payroll deduction basis, up to 6 percent of his/her base salary.

Question 57

What are matching employer contributions?

Accepted Answer

Contributions made to a defined contribution benefit plan, such as a 401(k) Retirement Savings Plan, by the employer based on a certain percentage of the employee’s own contribution. For example, an employer may contribute 50 cents on the dollar for each dollar which an employee contributes to the plan on a payroll deduction basis, up to 6 percent of his/her base salary.

Question 58

Do IRAs require a QDRO?

Accepted Answer

Technically, an IRA is not a "qualified" retirement plan. 
In most cases, the custodian only requires a certified copy of the Divorce Decree, which clearly identifies the IRA to be divided (i.e. name of the custodian and the account number), the award, and the identity of the parties. In many cases, this, along with transfer forms provided by the custodian is sufficient to divide the IRA. However, sometimes the custodian may request a QDRO.
In some cases, the custodian may request a letter of instruction, which is a letter that describes the assignment in more detail and is signed by both parties.
We recommend a call to the account representative or custodian to determine what is required.

Question 59

Is it important to know the exact name of the plan that will be divided by QDRO?

Accepted Answer

Yes. Information is key in these cases. Many companies have multiple retirement plans. Unless your divorce decree is clear as to which plan is to be divided, questions can arise. Questions can cost you time & money. Be sure to acquire a plan statement or estimate for the plan(s) that is/are to be divided.

Question 60

What is an actuarial equivalent?

Accepted Answer

The actuarial adjustment necessary to convert a participant’s benefits into different forms and/or payment periods so that the total value of a participant’s pension benefits remains equal (on an actuarial basis) regardless of the form of benefit or the commencement date the participant may elect.

Question 61

Is it important to know the exact name of the plan that will be divided by QDRO?

Accepted Answer

Yes. Information is key in these cases. Many companies have multiple retirement plans. Unless your divorce decree is clear as to which plan is to be divided, questions can arise. Questions can cost you time & money. Be sure to acquire a plan statement or estimate for the plan(s) that is/are to be divided.

Question 62

Can an alternate payee receive immediate access to the account after the QDRO is completed?

Accepted Answer

It depends.
Never assume that an Alternate Payee can receive immediate access to funds. When it comes to defined contribution plans (i.e. 401(k) plans) distributions can take place relatively quick once the Plan Administrator approves the (Q)DRO. However, with some plans, distributions may only be available once a year during a specific period.
For most traditional defined benefit plans, payment may commence at the employee’s earliest retirement eligibility or later. If timing of a distribution is a concern, be sure to confirm the distribution timing & options before the deal is finalized.

Question 63

What is an actuarial equivalent?

Accepted Answer

The actuarial adjustment necessary to convert a participant’s benefits into different forms and/or payment periods so that the total value of a participant’s pension benefits remains equal (on an actuarial basis) regardless of the form of benefit or the commencement date the participant may elect.

Question 64

How do we get started identifying the retirement benefits in the case?

Accepted Answer

At minimum, request statements for each retirement plan in which a party has an interest.  You may also want to request the plan participant to provide the Summary Plan Description ("SPD") for each retirement plan being divided.  The SPD is a detailed guide to the benefits the program provides and how the plan works.

877-661-7376

FAQs for Attorneys

What is a (Q)DRO?

What should I expect... from start to finish?

What is a defined contribution plan?

What is a defined benefit pension plan?

How long will this take?

Who is the Participant?

How do we get started identifying the retirement benefits in the case?

What is a (Q)DRO?

Who is the Alternate Payee?

Who is the Plan Administrator?

What is a defined contribution plan?

What documents should I be gathering during discovery?

Who is the Participant?

What is a defined contribution plan?

Who is the Alternate Payee?

What is a defined contribution plan?

How long will this take?

Can a QDRO be prepared before a divorce is finalized?

Who files the (Q)DRO with the Court?

Who is the Plan Administrator?

When can I expect to get my money?

Who files the (Q)DRO with the Court?

What is a defined benefit pension plan?

I signed the (Q)DRO, but the other party hasn’t. What happens?"

What is a defined benefit pension plan?

When can I expect to get my money?

What is a defined benefit pension plan?

I signed the (Q)DRO, but the other party hasn’t. What happens?"

Why are you sending the (Q)DRO to the Plan for conditional pre-approval? And how long will it take?

What is the Participant’s accrued benefit under a defined benefit plan?

The (Q)DRO was signed by everyone, now what?"

Why are you sending the (Q)DRO to the Plan for conditional pre-approval? And how long will it take?

What is the Participant’s accrued benefit under a defined benefit plan?

What is the Participant’s accrued benefit under a defined benefit plan?

The (Q)DRO was signed by everyone, now what?"

What happens after the (Q)DRO has been entered by the Court?

What is the Participant’s accrued benefit under a defined benefit plan?

What is the Participant’s accrued benefit under a defined benefit plan?

What is the Participant’s accrued benefit under a defined benefit plan?

Does The QDRO Company pay me my money?

What happens after the (Q)DRO has been entered by the Court?

What is the Participant’s accrued benefit under a defined benefit plan?

What is the Participant’s accrued benefit under a defined benefit plan?

What is a vested accrued benefit?

Does The QDRO Company pay me my money?

Why should I get a QDRO now? Why can't I wait until my former spouse retires or until I need the money?

What is a vested accrued benefit?

What is meant by the earliest retirement age?

Can I receive a cash distribution from the plan?

Why should I get a QDRO now? Why can't I wait until my former spouse retires or until I need the money?

What is meant by the earliest retirement age?

What is meant by the earliest retirement age?

Can I receive a cash distribution from the plan?

Do IRAs require a QDRO?

What is meant by the earliest retirement age?

What are matching employer contributions?

What are matching employer contributions?

Do IRAs require a QDRO?

Is it important to know the exact name of the plan that will be divided by QDRO?

What is an actuarial equivalent?

Is it important to know the exact name of the plan that will be divided by QDRO?

Can an alternate payee receive immediate access to the account after the QDRO is completed?

What is an actuarial equivalent?

How do we get started identifying the retirement benefits in the case?

Can an alternate payee receive immediate access to the account after the QDRO is completed?

If an alternate payee takes a distribution from an ERISA qualified plan, does he or she have to pay a penalty?"

What kind of language should property settlement agreement or divorce decree contain when dividing a defined contribution plan?

What kind of language should property settlement agreement or divorce decree contain when dividing a defined contribution plan?

What are Pre-Retirement Survivor Benefits?

If an alternate payee takes a distribution from an ERISA qualified plan, does he or she have to pay a penalty?"

What kind of language should property settlement agreement or divorce decree contain when dividing a defined benefit plan?

What are Pre-Retirement Survivor Benefits?

What kind of language should property settlement agreement or divorce decree contain when dividing a defined benefit plan?

What is a Single Life Annuity?

What is a Joint &amp; Survivor Annuity?

Can a QDRO be prepared before a divorce is finalized?

What is a Single Life Annuity?

What are Pre-Retirement Survivor Benefits?

What is a Joint & Survivor Annuity?

What is a Joint & Survivor Annuity?

What is a Joint & Survivor Annuity?

What is a Joint & Survivor Annuity?

What is a Joint & Survivor Annuity?

What is a Joint & Survivor Annuity?