COLLECTED WISDOM™ - on Qualified Domestic Relations Orders -- QDROs

You are the plan administrator for your company’s retirement plan. A plan participant comes to you for information and advice about the possible effects that an impending divorce might have on his benefits. What does the Employee Retirement Income Security Act (ERISA) require of you? Here is some information that will help.

DOL Issues Final Rules on QDRO Distributions - Summary: Because the determination of whether a domestic relations order is to be considered a "qualified" order is a fiduciary act under ERISA, article recommends that all plan sponsors review their written QDRO determination procedures and familiarize themselves with the new Rule's requirements and illustrative examples. Located at: Masuda, Funai, Eifert & Mitchell, Ltd, June 2010.

DOL Releases Final Regulations Relating To Time and Order of QDROs - Summary: The regulations, which are effective July 30, 2010, are substantially similar to the interim final rule issued in 2007, but several changes were made to the examples given, and one additional example was added. Located at: Sutherland Asbill & Brennan LLP , June 2010. Click on headline to read full article.

The Division of Retirement Benefits Through Qualified Domestic Relations Orders - Summary: This publication provides general information about the qualified domestic relations orders (QDROs) under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986. This booklet was prepared to provide general guidance about QDROs to employers, retirement plan administrators, participants, beneficiaries, employee benefit professionals, and domestic relations specialists. Located on: U.S. Department of Labor, June 2010. Click on headline for full article.

What Are the Limitations on QDROs - Summary: As state courts increasingly use QDROs routinely for satisfaction of past due support obligations from otherwise non-assignable retirement plan funds, more legal challenges to QDROs can be expected and the limitations on QDROs will be further defined. This article will discuss the Congressional intent behind the establishment of QDROs and the limitations that should be recognized in their use today. Located at: Journal Of The Missouri Bar, April 2005. Click on headline for full article.

Impact of QDROs on Top Heavy Determinations - Summary: A question on QDROs and top-heavy testing for DC plans. Could you provide your opinion on how distributions to, and accounts established for, Alternate Payees are treated for top-heavy testing? Located at: Reish Luftman Reicher & Cohen, August 2004. Click on headline for full article.

No QDRO Equals No Benefits - Summary: We recently represented one of the nation's largest retailers in an action filed in state court by the former spouse of a participant in the retailer's 401(k) plan. The court granted our request to dismiss the claim, agreeing that the claim was preempted by ERISA. The case demonstrates how important it is for counsel in cases involving employee benefit plans to be familiar with the interplay between ERISA and state laws which may affect plans and their participants. Located on: Reish Luftman. Click on headline for full article.

QDRO's - Summary: When you need to transfer an interest in a qualified retirement plan, you'll need to use a QDRO, a Qualified Domestic Relations Order. A short item on QDRO Must Have's, Must Not's, Lawyer Issues, and Issues For You. Located on: Divorceinfo.com. Click on headline for full article.

Seven Key Questions You Need to Ask Before Your Divorce is Finalized - Summary: To make an intelligent decision on how to divide a pension, find out what kind of pension it is, how it is funded, how it pays out, and ask these seven key questions before your divorce is finalized. Located on: Women's Institute for a Secure Retirement. Click on headline for full article.

Deferred Compensation, Retirement Plans & Divorce - Summary: Deferred compensation refers to pension plans, 401K plans, IRAs and other retirement assets. Such plans are divisible as part of a property settlement in divorce regardless of which party is named on the plan. How they are divided depends on the value and nature of the asset. Located on: Freeadvice.com. Click on headline for full article.

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