I recently received DRO that dictates the Alternate Payee is entitled to 50% of the participant's accumulated account balance in a money purchase plan as of 6/30/98. The plan is on a calendar year basis. Would the Alternate Payee be entitled to 50% of the participant's 1998 contribution if the plan does not require either a 1000 hr or last day provision? Has the participant accrued his 1998 contribution as of 6/30/98 subject to the DRO?

Regardless of 1,000 hour rule or EOY rule, a participant in a MPPP has earned the right to said contribution and it is part of the account balance, whether deposited or not.

However you may interpret and apply the language, be sure to describe in the notice of qualification how you interpreted the provision and its effect, and do it in very simple terms, using number to extent possible. You need to give the parties an opportunity to see the effects of the provisions. I seriously doubt they took into account the accrual niceties when they envisioned the results.