A QDRO that divides DB plan accrued benefit as of date of divorce. Separate interest. This plan defined NRA as 65. Allows full Normal Retirement Benefit after 30 years of service, even if P is younger than 65. Without 30 years, anything before 65 is reduced for Early Retirement. P becomes eligible for the 30 yr retirement one-two years after the divorce, but before P reaches NRA. Both P and AP begin benefits 3 years after divorce and after P is eligible for the full 30 year retirement benefit. The QDRO neither states that the AP shares in subsidies nor does it require the AP to receive a reduced benefit if the AP begins payment prior to P reaching NRA.

Question 1: Is the AP eligible for the unreduced benefit?
Question 2: Is the 30 year retirement benefit an early retirement subsidy?

Any legal authority would be greatly appreciated.
Thanks much.

Just an opinion (I'm an actuary, not an attorney).
1. Should be based on the terms of the QDRO. And don't try to read any implication into it.
2. Absolutely.

I agree that you have to interpret the order, but good written QDRO procedures would make up for bad or ignorant drafting. Absent anything to the contrary, the subsidized benefit should be divided if they start at the same time. Different answer if the AP started before the subsidy became effective.

This is a followup to understand the term subsidy:

I'm reviewing the provisions of a proposed qdro and am not certain on how the early retirement benefits would be calculated for the spouse. The participant is still active. If the spouse would like to start benefits after he turns age 55 but while he is still active, how would her benefit be adjusted for early retirement? Would it be adjusted only for actuarial equivalence from his benefit at age 65 to her start age, or would the plan's more generous early retirement factors apply to bring the benefit to 55 and then actuarially adjust it to her age, even though he's still active? I'm not sure if the use of the word subsidy applies to something like the special provision in the postings above, or also to the difference between generous early retirement factors and actuarial equivalence. Here is the text of the document -
Wife shall also receive a pro rata share of any postretirement cola made to husband's benefits on or after the date of his retirement, any early retirement subsidies husband may receive, and/or any early retirement supplements husband may receive. Wife's pro rata share shall be calculated using the formula above.

Once he retires then, and if he retires early, would we then look at the difference between his early retirement benefit, and his actuarial equivalent benefit at early retirement age and treat that as a subidy to determine what to add to her benefit?

I believe this is a correct approach. The place I worked in the past used this approach for years. If participant is active and AP would like to start her benefits, he/she will receive the actuarial equivalent of Normal Retirement benefits. If there is a subsidy at the time of participant's retirement, AP's benefit will be adjusted.

Maybe. Does the plan contain language that complies with IRC 414(p(3)?

"A domestic relations order meets the requirements of this paragraph only if such order -
...
(B) does not require the plan to provide increased benefits (determined on the basis of actuarial value), and
..."

This is (usually) an insufficient justification for doing something that would violate the plan document.

Please explain the statment about the plan containing certain language and the effect either way.

I never said it is going to be an easy calculation. IRC 414(p(3) refers to a qualification of a DRO meaning "do not assign more than plan document said". Previous post stated that there are more generous early retirement factors (aka early retirement subsidy). It also stated that according to a QDRO, spouse is entitled to pro rata share of this subsidy. But you cannot calculate the subsidy and therefore pro rata of this subsidy until participant retires. And there is no subsidy if participant retires on his Normal Retirement Date or later. So approach was to start paying the actuarial equivalent of spouse's portion of Accrued Benefit (easy part). Adjust if needed upon participant's retirement without increasing the total value of benefits payable from the Plan (hard part).