Allan from Tulsa, OK asks, "Is it necessary to mention a QDRO in the divorce documents?"
Pension Evaluators & QDROS Of Troyan, Inc Associates Group answers, "If the decree of divorce does not incorporate the QDRO by reference, several considerations must be addressed in the decree so that issues do not later arise. The biggest danger in negating the QDRO in the divorce is that many Plan Administrators will ask for the divorce agreement to validate the QDRO. The Military is notorious for making such requests.
Defined benefit plans require essential features that must be addressed in your settlement agreement, some of which will depend on whether the participant is in pay status. Some of these features include detailing :(1) when the alternate payee may commence his/her benefits (shared payment versus separate interest approach); (2) the proper calculation method, such as the coverture method; (3) pre- and post-retirement survivorship (Qualified Preretirement Survivor Annuity and Qualified Joint and Survivor Annuity, the latter of which is unnecessary in a separate interest QDRO); (4) cost-of-living adjustments, and to what extent; and (5) the early retirement subsidy; (6)Plan Termination clauses for PBGC; (7) Plan Administrator. Many just offer the Plan Name in the QDRO and negate the Address.
Defined contribution plans also necessitate proper verbiage. Negating to address interest, dividends, gains, and losses could cause litigation down the road if the balance fluctuated greatly from the date of assignment. Also important is determining whether the participant has a loan balance and if that loan balance will be included or excluded from the assigned percentage. Most important is the valuation date for investment experience to commence. This date also tells the Plan when to cutoff the marital/community benefit."
Pension Evaluators & QDROS Of Troyan, Inc Associates Group QDRO Consulting offers expert QDRO outsourcing services to divorce attorneys and mediators, as well as retirement plan administrators.
Divorce attorneys/mediators – You can rely on PPension Evaluators & QDROS Of Troyan, Inc Associates Group QDRO Consulting to draft QDRO documents correctly and promptly for your clients, and obtain pre-approval by the plan administrator. We will be pleased to work with you, or directly with your clients, in the QDRO process. Just complete and mail the application form on this site (or direct your client to do so), along with prepayment of our fee, either by check or credit card (online).