Headlines about "Distributions - QDROs"
Gathered from the web by the editors at BenefitsLink.com.
QDROs Can Be Particularly Problematic When Plan Assets Contain Employer Securities
Excerpt: "Divorce is messy. Even once the settlement agreement has been reached, signed and filed with the court, our client still faces one remaining hurdle; the dreaded Qualified Domestic Relations Order (QDRO)." (Morningstar)
[Guidance Overview] Plan Administrator Cannot Consider Motivation for Participants' Divorces When Determining Status of QDRO
Excerpt: "EBIA Comment: Plan administrators generally are not required to analyze whether a divorce order is valid under state domestic relations law. However, according to a prior DOL advisory opinion (also addressing allegedly sham divorces by pilots), if there is credible evidence that the order has been procured through fraud, plan administrators should take appropriate steps to resolve the validity of the order. Those steps will depend on the facts and circumstances, and could include relaying the evidence of fraud to the court or agency that issued the order. But if requested guidance from the court or agency is not received within a reasonable time, the plan administrator must proceed with determining the validity of the order (in other words, the plan administrator may not independently determine that the order is not valid under state law). Because these issues can be complex and fact-specific, plan administrators faced with potentially fraudulent QDROs may wish to seek the advice of experienced legal counsel." (Employee Benefits Institute of America)
[Opinion] Divorce and Pensions: Continental Style
Excerpt: "This is one of the great ERISA stories of all time - its like something out of a Boston Legal episode. I am speaking, of course, of the case, detailed here, of the Continental pilots who, concerned that the retirement plan may go belly up long before they retire, divorced their wives, executed QDROs transferring the retirement benefit to their now ex-spouses, after which the ex-wives took out lump sum payments, as the plan allowed. . . . [L]urking in the background, behind the entertaining fact pattern (entertaining, at least, to ERISA lawyers): the fact that we have a retirement system that is so tenuous that employees feel it is necessary to go to lengths such as this to protect themselves. That is the more significant issue that needs addressing, much more so than whether plan terms or QDRO requirements should be able to be manipulated in such a manner." (Stephen Rosenberg of The McCormack Firm, LLC)
Judge Throws Out Continental's Suit Against Divorced Pilots
Excerpt: "We wrote this summer about Continental Airlines' decision to sue some of its pilots who, the company thought, had undergone bogus divorces in order to get some pension benefits. The pilots were still in love, the airline essentially argued, and therefore shouldn't be getting the early pensions that come with divorce (and what kind of anti-marriage stance is that, Continental?) A federal judge here ruled against the airline today, saying that no one knows what is in another's heart. Or something like that." (Village Voice Media )
[Opinion] Did a Unanimous Supreme Court Misread ERISA, Misread the Court's Precedents, Undermine Basic ERISA Principles, and Encourage Benefits Litigation?
Excerpt: "In Kennedy v. Plan Administrator of the DuPont Savings and Investment Plan (the 'Kennedy Decision'), a unanimous Supreme Court appeared to proclaim a 'bright-line rule' that plan documents determine benefit distribution rights. However, by misreading ERISA and its own precedents, the Supreme Court needlessly undermined basic ERISA principles with respect to the determination and the protection of ERISA benefit entitlements, the coverage of the prohibition on the alienation of pension benefits (the 'Alienation Prohibition') and the rules pertaining to QDROs." (Social Science Research Network)
[Guidance Overview] No COBRA for Former Spouse Who Did Not Provide Timely Notice of Divorce
Excerpt: "EBIA Comment: Other courts have held that a plan with 'inquiry notice' of a qualifying event must send a COBRA election notice. A plan has inquiry notice when the covered employee or the qualified beneficiary has given enough information about the occurrence of the qualifying event to allow the plan administrator, upon due inquiry, to reasonably ascertain that a qualifying event has occurred. But as this court concluded, knowledge of a pending divorce is not knowledge of a qualifying event since the actual entry of a divorce decree is the triggering event for the COBRA qualifying event of divorce. The outcome might have been different if the plan had inquiry notice of a final divorce." (Employee Benefits Institute of America)
[Guidance Overview] QDRO Cannot Override ERISA Rules for COBRA and Retirement Benefits
Excerpt: "The U.S. District Court for the Eastern District of Pennsylvania has ruled that the former spouse of an employee cannot get continued health care benefits as dictated by a qualified domestic relations order (QDRO) because the plan was not notified of her divorce within the 60-day notice requirement for a qualifying event under the Consolidated Omnibus Budget Reconciliation Act (COBRA)." (PLANSPONSOR.com; free registration required)
[Opinion] Comments on Proposed Legislation in Oklahoma Relating to Treatment of Military Retired Pay at Time of Divorce (PDF)
2 pages. Excerpt: "Together with the National Women's Law Center, the PRC sent a letter to the Oklahoma state legislature expressing concerns about proposed legislation that would change the way Oklahoma state courts divide military pension benefits." (Peinsion Rights Center)
[Opinion] QDROs, the Drainville Decision, and Albert Feuer
Excerpt: "I don't think anyone has made as sustained a study of the law of QDROs as Albert Feuer. Albert has a new piece he has authored on the Drainville decision, which I discussed here, in which Albert concurs that it is both well reasoned and accurate in treating substantial compliance with the statutory QDRO requirements as sufficient. Albert, however, has long maintained a particular scholarly view on the QDRO requirements, which is that they only apply to pensions under the statutory language, and don't reach other ERISA governed plans or benefits. Albert points out that the Drainville court erred in its analysis for this reason." (Stephen Rosenberg of The McCormack Firm, LLC)
[Guidance Overview] Qualified Domestic Relations Orders Issues
Excerpt: "Pension and retirement benefits earned during a couple's marriage are of great value. It's not uncommon for couple's that have been married for a long-time to build up significant pension or retirement benefits, which can be worth considerable value in their marital assets. When splitting up these assets a Qualified Domestic Relations Order (QDRO) will be needed to receive all or a portion of qualified plan benefits from an ex-spouse." (Examiner.com)
Continental Says Pilots Got Sham Divorces
Excerpt: "Excerpt: 'Continental Airlines is suing nine pilots that it says got sham divorces so their ex-spouses could collect their retirement benefits while they kept flying. The airline said the pilots -- seven men and two women -- got divorces but concealed that from children and friends, then remarried their spouses after getting the money. The company said it paid out $10 million to $11 million in suspicious pension distributions.'" (AP via The New York Times; free registration required)
[Guidance Overview] AT&T Did not Improperly Delay QDRO Payment
Excerpt: "The U.S. District Court for the Eastern District of Missouri has found that AT&T Inc.'s pension plan administrator did not act improperly by not immediately paying lump-sum benefits to an employee's ex-wife under two domestic relations orders. According to the court opinion, neither the first domestic relations order (DRO) nor an amended DRO entitled Sigrid V. Green to the immediate payment of pension benefits. The court determined Green was entitled to a calculated portion of her ex-husband's pension benefits on the earlier of his retirement date, even if he has not yet retired, or when he elects to start receiving benefits." (PLANSPONSOR.com; free registration required)
Divorce and Retirement: How to Take Control of Retirement Benefits (PDF)
Excerpt: "When you're in the midst of a divorce, you have to juggle so many things. . . . One practical issue that women often overlook is getting a fair share of retirement assets. Retirement funds may be among the biggest assets you have as a couple. It's important to know that these funds are not automatically split in a divorce." (The Women's Institute for a Secure Retirement)
[Guidance Overview] Divorce and Retirement: Take Control of Retirement Benefits (PDF)
20 pages. Excerpt: "Let's start with the fact that retirement benefits are not automatically split during a divorce. Just like other marital assets, a divorce court judge or an agreement between you and your spouse divides the benefits. Find out as much as you can about the benefits earned by you and your husband during the marriage. Then make sure you and your lawyer protect your right to those benefits." (Women?s Institute for a Secure Retirement (WISER))
[Guidance Overview] Feuer on the Kennedy Case
Excerpt: "Albert Feuer, who has provided us with valuable analysis of Kennedy v. DuPont as it was pending before the Supreme Court, has now done the same for the Court's final decision. He will have a more extensive discussion of the case in his article, 'Will the Supreme Court Reinforce or Undermine Basic ERISA Principles When it Decides a Death Benefit Dispute,' which is to be published soon in the Charleston Law Review. In the meantime, he's prepared a shorter analysis of the case." (Workplace Prof Blog)
[Guidance Overview] QDRO Awarding Pension Benefits to Domestic Partner in 'Quasi-Marital Relationship' Upheld on Appeal
Excerpt: "EBIA Comment: The Ninth Circuit looked to state law to define what constitutes 'marital property rights' for QDRO purposes. In so doing, the court rejected the plan's claim that 'marital property rights' for this couple could not exist because they were not married within the meaning of the federal Defense of Marriage Act (DOMA). While the court's conclusion in this case -- in the context of opposite-sex partners -- is relatively straightforward (as the court noted: 'DOMA's legislative history reflects only Congress's concern for same-sex marriages'), it begs the question of how this case might have been decided if the partners were same-sex partners and the DOMA argument not so easily dismissed." (Employee Benefits Institute of America)
[Guidance Overview] Plan Administrator Properly Followed Plan Documents and Paid Ex-Spouse Despite Divorce Decree Waiver
Excerpt: "EBIA Comment: In relying on the plan document rule, while also addressing the anti-alienation arguments, the Court resolved prior splits among lower courts on both of these issues. This decision brings welcome uniformity to plan administrators who have been faced with uncertainty about whether to honor divorce decree waivers, allowing them now to rely on plan documents to determine beneficiaries. The Court acknowledged that less certain rules would force plan administrators to review 'a multitude' of external documents purporting to waive benefits and face increased risk of being drawn into costly litigation." (Employee Benefits Institute of America)
[Guidance Overview] Supreme Court Clarifies That a Former Spouse's Benefits Are Governed by Plan's Express Terms
Excerpt: "To assist plan administrators and employers in utilizing the Kennedy decision to make benefit administration less complicated, employers need to review the terms of their benefit plans to ensure that the benefit distribution rules and beneficiary designation provisions are clear and unambiguous. Also, other important plan-related forms, such as beneficiary designation forms, should be reviewed to insure that they are clear and properly notify participants of the decisions they are undertaking." (McDermott Will & Emery)
[Guidance Overview] Order Awarding Pension Benefits After 30-Year 'Quasi-Marriage' Constituted a QDRO
Excerpt: "A court order awarding pension benefits following the dissolution of a 30-year 'quasi-marriage' constituted a qualified domestic relations order (QDRO) under ERISA. This was the decision of the Ninth Circuit U.S. Court of Appeals in Owens v. Automotive Machinists Pension Trust (No. 07-35253)." (Wolters Kluwer)
[Guidance Overview] Supreme Court Upholds Distribution to Former Spouse Despite Divorce Decree
Excerpt: "In ruling for the plan administrator, the Court resolved conflicting opinions from the lower courts and stressed the need for plan administrators to be able to rely on the plan's own administrative procedures in determining who is entitled to a deceased participant's benefit, and not to be required to interpret other documents that might contradict the participant's beneficiary designation on file with the plan. The participant in this case, the Court held, had ample opportunity to change his beneficiary designation and had failed to do so." (Seyfarth Shaw LLP)
[Official Guidance] Text of U.S. Supreme Court Decision Denying Death Benefits to Surviving Ex-Spouse (PDF)
22 pages. Excerpt (from the opinion's syllabus): 'Under the terms of the plan, if there is no sur-viving spouse or designated beneficiary at the time of death, distribu-tion is made as directed by the estate's executor or administrator. Upon their marriage, William designated Liv Kennedy his SIP bene-ficiary and named no contingent beneficiary. Their subsequent di-vorce decree divested Liv of her interest in the SIP benefits, but Wil-liam did not execute a document removing Liv as the SIP beneficiary.On William's death, petitioner Kari Kennedy, his daughter and theexecutrix of his Estate, asked for the SIP funds to be distributed to the Estate, but the plan administrator relied on William's designa-tion form and paid them to Liv." (U.S. Supreme Court via American Benefits Council)
[Guidance Overview] Supreme Court Sides With DuPont in $400K Pension Plan Case
Excerpt: "The U.S. Supreme Court said Monday that DuPont Co. ( DD) was correct to pay a deceased worker's retirement benefits to his ex-wife even though she had renounced her rights to the pension during divorce proceedings." (Dow Jones via CNNMoney.com)
[Guidance Overview] Supreme Court Rules for Employer in Pension Dispute Over Death Benefit
Excerpt: "The justices, in a unanimous decision Monday, said Kari Kennedy can collect nothing from DuPont because companies are bound by what a worker puts down on forms designating who is to receive retirement and other benefits after his death. " (AP via SignOnSanDiego.com)
[Guidance Overview] State Court Lacks Jurisdiction to Determine Whether a DRO Is a QDRO, According to Appeals Court
Excerpt: "EBIA Comment: The DOL's view that only federal courts have jurisdiction to determine whether a DRO is qualified, is found in a set of frequently asked questions (FAQs) addressing various QDRO issues (available at http://www.dol.gov/ebsa/faqs/faq_qdro.html). As we have previously noted, however, we find more compelling the view that an alternate payee's lawsuit challenging a plan administrator's QDRO determination is a claim for plan benefits under ERISA Section 502(a)(1)(B) over which state and federal courts have concurrent jurisdiction, although if filed in state court, the plan should be able to remove the state court action to federal court, regardless of how the claim is pled in the complaint, pursuant to the 'complete preemption' doctrine . . . ." (Employee Benefits Institute of America)
State Courts Cannot Determine If Domestic Relations Order Is Qualified Under ERISA
Excerpt: "The Minnesota Court of Appeals has overturned a lower court's decision that a domestic relations order (DRO) was a qualified domestic relations order (QDRO), saying the lower court did not have the jurisdiction to make that determination. According to EBIA, the court cited the Department of Labor's view that federal courts have exclusive jurisdiction to determine whether a DRO is a QDRO." (PLANSPONSOR.com; free registration required)
9th Circuit Finds QDRO Valid for 30-year Quasi-Marriage
Excerpt: "The 9th U.S. Circuit Court of Appeals has determined that a pension plan must recognize a qualified domestic relations order (QDRO) under Washington state law because the payee maintained a 'quasi-marital' relationship with the plan participant for more than 30 years. The court agreed with a federal district court in Washington that the Order issued by the Superior Court of King County awarding Norma Owens a 50% interest in Phillip R. Owens, Sr.'s pension benefits constituted a valid QDRO because it relates to 'marital property rights' and Norma qualifies as a 'dependent' of Phillip, and therefore as an 'Alternate Payee.'" (PLANSPONSOR.com; free registration required)
[Guidance Overview] Guest Commentary by Albert Feuer on the Pending Kennedy ERISA Case
Excerpt: "[The Workplace Prof Blog is] privileged to have Albert Feuer, eminent ERISA practitioner, provide this updated analysis on the Kennedy ERISA case before the Supreme Court based on its recent request for further briefing on the issues: 'A Curious ERISA Case Before the Supreme Court Becomes More Curious' Kennedy v. DuPont Savings Plan Administrator, No. 07-636 has become even more curious." (Workplace Prof Blog)
Court Affirms Denial of Survivorship Benefits not Provided for in QDRO
Excerpt: "A federal judge has ruled that the lack of language in a qualified domestic relations order (QDRO) assigning survivorship benefits to an ex-spouse is a clear indication of the intent not to provide those benefits." (PLANSPONSOR.com; free registration required)
[Opinion] AARP Urges Supreme Court to Require Participants to Follow Plan Terms in Order to Change Beneficiary Designations
Excerpt: "AARP has filed a 'friend of the court' brief in support of neither party in the Supreme Court case of Kennedy v. Plan Adm'r for DuPont Sav. & Inv. Plan. AARP argues that employee benefit plan documents establish who may be a beneficiary and, here, the executrix of the estate did not meet any of the plan criteria." (AARP)
[Guidance Overview] New Question Posed in ERISA Case Before Supreme Court
Excerpt: "The Supreme Court on Tuesday ordered lawyers to file new briefs by Nov. 10 on a new issue in a pending case testing a divorced spouse's right to the other spouse's pension benefits. The question was posed in Kennedy v. DuPont Savings Plan Administrator (07-636) -- a case heard by the Justices on Oct. 7. The new question tests the application to the case of a part of federal benefit law that requires benefit plan administrators to operate the plan as dictated by plan documents -- an issue that the Court appeared previously to have declined to hear." (SCOTUSblog)
[Guidance Overview] High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Oct. 7 regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Texas Lawyer)
[Guidance Overview] Analysis of Oral Argument Transcript in ERISA DuPont Case
Excerpt: "The Supreme Court heard oral argument in the case of Kennedy v. Plan Administrator for DuPont Savings and Investment Plan this afternoon. The case concerns whether a divorcing spouse may waive her rights to spousal pensions benefits without going through the qualified domestic relations order (QDRO) process set out in the exceptions to ERISA's anti-alienation rule. What follows is analysis of that oral argument transcript based on my reading of the oral argument transcript in DuPont . . . ." (Workplace Prof Blog)
[Guidance Overview] Supreme Court to Examine QDROs as the Only Waiver to Retirement Benefits (PDF)
Pages 2-3 of 5 pages. Excerpt: "Next term, the U.S. Supreme Court will decide whether there is an exception to the general ERISA rule of non-alienation that a qualified domestic relations order (QDRO) is necessary to divest a party of a retirement benefit in the divorce context. The exception would permit a plan to treat a spouse's benefit as having been divested as a result of the spouse's execution of a divorce decree waiver." (Miller & Chevalier Chartered)
[Guidance Overview] Posthumous QDROs
Excerpt: "Over the years a series of cases have held, for various reasons, that a domestic relations order (DRO) assigning benefits to an intended alternate payee could not qualify as a QDRO if the order was entered after the participant's death. Many practitioners concluded that this was the law, although more recent cases have held to the contrary. PPA section 1001 is a wake up call: it is not too late to get a QDRO after the participant has died!" (Chang, Ruthenberg & Long PC)
[Guidance Overview] Failure to Meet Technical Requirements and to Timely Submit Divorce Decree Prevent Recognition as QDRO
Excerpt: "Although this case did not involve a 401(k) plan, it raises two issues of significant interest to 401(k) plan sponsors and administrators. First, the case serves as a reminder that even though the DOL has suggested that perfect compliance with the QDRO technicalities is not necessary, those requirements cannot be ignored." (Employee Benefits Institute of America)
Groups Urge Supreme Court to Uphold QDRO Ruling
Excerpt: "In a motion for permission to file a friend of the court brief, the American Benefits Council, The ERISA Industry Committee (ERIC), and the National Association of Manufacturers (NAM) asked the U.S. Supreme Court to affirm a finding by the 5th U.S. Circuit Court of Appeals that a divorce decree was not a waiver of an ex-spouse's right to benefits." (PLANSPONSOR.com; free registration required)
Divorce Decree Submitted after Participant's Death Is not a QDRO
Excerpt: "The U.S. District Court for the Middle District of Alabama ruled that a divorce decree did not meet the requirements a Qualified Domestic Relations Order (QDRO) because of technical failures and untimely submission to the plan administrator." (PLANSPONSOR.com; free registration required)
Court Denies Interest on Benefit Paid 12 Years After Death
Excerpt: "The U.S. District Court for the District of Delaware has denied a request by a deceased pension plan participant's ex-wife for interest on surviving spouse benefits paid to her 12 years after her ex-husband's death." (PLANSPONSOR.com; free registration required)
Court Order Needed to Split Retirement Accounts in Divorce
Excerpt: "Divorcing couples can split retirement accounts and even cash them out penalty-free as part of a settlement, but it has to be executed properly, and this is what many couples fail to do . . . ." (Chicago Tribune)
[Guidance Overview] Retirement and Survivor Annuities for Former Spouses of Federal Employees (PDF)
6 pages. Excerpt: "A former spouse of a federal employee may be entitled to a share of the employee's retirement annuity under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS) if this has been authorized by a state court decree of divorce, annulment, or legal separation. An employee also may voluntarily elect a survivor annuity for a former spouse. A state court can award a former spouse a share of the employee's retirement annuity, a survivor annuity, or both. A court also can award a former spouse of a federal employee a portion of the employee's Thrift Savings Plan (TSP) account balance as part of a divorce settlement." (Congressional Research Service via BenefitsLink.com)
[Opinion] Some Quirks About QDROs
Excerpt: "The First Circuit just got into the act at the end of last week, with a detailed ruling on the collision of QDROs, retirement benefits, divorce proceedings, and jurisdictional issues. To me, the most interesting aspect of the case concerns the court's discussion of the power of the state probate court to resolve this issue, and the court's suggestion that a parallel, but separate, federal action over the enforcement and interpretation of a QDRO is, at a minimum, not an approach the court favors." (Stephen Rosenberg of The McCormack Firm, LLC)
Divorce Can Put Dent in Retirement Savings - Correctly Valuing Marital Assets Key to Secure Retirement
Excerpt: "[I]f you are divorcing, what should you do? Take care of the here and now through alimony and child support, but value your marital assets smartly so you can salvage, not sabotage, your golden years, experts said. Many couples have retirement accounts, taxable investment accounts and property to divide in a breakup, and their values often are intertwined in a final settlement." (Chicago Tribune)
Pension Plans, Retirement Funds Loom Large When Getting Divorce
Excerpt: "Anyone who is getting divorced faces a daunting array of financial decisions, but none is more important than how to divvy up the retirement assets. According to Consumer Reports' Money Adviser, in most states, retirement plans acquired during a marriage -- including pensions, annuities, 401(k)s and IRAs -- are considered marital property and will have to be included in the division of marital assets in the event of divorce." (The Modesto Bee)
The Retirement Nest Egg and Divorce in Mississippi
Excerpt: "Here is a common situation I see as a Mississippi divorce lawyer. A wife wants to divorce her husband. The husband works for a large employer in Madison, Mississippi and has accumulated a nice retirement account from the employer while married to his spouse. In fact, other than the house, the husband's retirement account is the largest asset this couple owns. The wife wants to know if she is entitled to any of the retirement account. If so, can it be divided." (DivorceHelpNetwork.com)
Divorce Has an Impact on Retirement Plans
Excerpt: "Anyone who is getting divorced faces a daunting array of financial decisions, but none is more important than how to divvy up the retirement assets. According to Consumer Reports' Money Adviser, in most states, retirement plans acquired during a marriage -- including pensions, annuities, 401(k)s and IRAs -- are considered marital property and will have to be included in the division of marital assets in the event of divorce." (Consumer Reports via The Morning Call)
[Guidance Overview] Supreme Court Agrees to Hear Case on ERISA's Anti-Alienation Provision (PDF)
2 pages. Excerpt: "The U.S. Supreme Court has agreed to review the question of whether a qualified domestic relations order (QDRO) is the only valid way under ERISA that a former spouse can waive his or her right to receive a death benefit from an employee pension benefit plan. Kennedy v. DuPont Plan Administrator (07-636)" (Sutherland Asbill & Brennan LLP)
Supreme Court to Decide Issue of Ex-Spouse Waiver of Benefits
Excerpt: "The U.S. Supreme Court has agreed to hear a case in which the 5th U.S. Circuit Court of Appeals found that a qualified domestic relations order (QDRO) as provided for in the Employee Retirement Income Security Act (ERISA) is the only valid way a divorced spouse can waive his or her right to the ex-spouse's pension benefits." (PLANSPONSOR.com; free registration required)
[Guidance Overview] In the Supreme Court - DuPont
Excerpt: "[A backgrounder on a case granted cert. -- ] the ERISA anti-alienation case of Kennedy v. Plan Administrator for Dupont Savings and Investment Plan: William Kennedy's ERISA plan contained a no-alienation provision. William designated his wife Liv as the sole beneficiary. Upon their divorce, Liv agreed to be divested of all her rights. However, there was no Qualified Domestic Relations Order (QDRO). The 5th Circuit held that an ERISA Qualified Domestic Relations Order is the only valid way a divorcing spouse can waive her right to receive her ex-husband's pension benefits under ERISA." (Workplace Prof Blog)
[Guidance Overview] ERISA Governed Dispute Involving Competing Claims to Participant's Retirement Benefits
Excerpt: "This [5th Circuit] case involves two former spouses' competing claims to a participant's retirement plan benefits. The participant's first spouse obtained a state court order placing a lien on the participant's plan distributions to collect child support arrearages. Declining to comply with the order, the plan administrator took the position that under ERISA it couldn't withhold the child support payments from the participant's distributions without a QDRO. Meanwhile, the participant and his second spouse divorced . . . ." (Employee Benefits Institute of America)
[Guidance Overview] Who is Entitled to Survivor Benefits from ERISA Plans?
Excerpt: "ERISA pension plans must incorporate the only two ERISA required beneficiary designations, QDROs and spousal survivor benefit designations. Neither statutory designation applies to an ERISA plan that is not a pension plan, such as a life insurance or disability plan. Thus, neither statutory designation may supersede a beneficiary designation made pursuant to the explicit terms of an ERISA life insurance or disability plan." (Social Science Research Network)
Lawyer Did Not Commit Wrongdoing on Benefits Dispute
Excerpt: "Even though a divorce decree reflected a bad address for a life insurance plan participant's ex-wife, the document still represented a qualified domestic relations order (QDRO), a federal appellate court ruled." (PLANSPONSOR.com; free registration required)
Using a QDRO as a Settlement Tool
Excerpt: "QDRO distributions can be very flexible. The portion necessary to pay off marital debt can be paid directly to the non-participant spouse and another portion used to equalize marital assets can be paid with a trustee-to-trustee transfer with no taxes incurred by either party. The non-participant spouse simply has to set up an I.R.A. to receive the non-taxable portion. The plan must be advised accordingly. The specific instructions can be included in the QDRO to insure plan compliance." (www.divorcenet.com)
Disability Pensions and How They Are Treated
Excerpt: "A few States do not consider disability pensions marital property, while most others do. The U.S. Military will not allow the use of a Uniformed Service Former Spouses Protection Act order (military QDRO) on any portion of the pension which is deemed to be attributable to a disability (a military member can have his pension apportioned to consider any injuries incurred during his or her tour of duty and receive that portion tax-free)." (www.divorcenet.com)
Overview: Tax Issues on Distributions from Retirement Plans (PDF)
28 pages. A very brief overview emphasizing loans, QDROs and minimum distributions prepared by the IRS for presentation at its 2007 IRS Nationwide Tax Forum. Probably most useful to tax professionals whose practice does not already include a substantial amount of time on retirement plan distribution issues. (Internal Revenue Service)
Dividing Retirement Benefits on Divorce, and What ERISA Has to Say About It
Excerpt: "[F]rom everyone's standpoint, it's best for the Plan Administrator to review a draft of the domestic relations before it gets filed with the court. Better to resolve issues before the order is filed than the Plan Adminstrator having to determine that the domestic relations order really isn't a QDRO." (The Retirement Plan Blog)
Participant's Ex-Wife Gets Surviving Spouse Benefits Under QDRO
Excerpt: "A federal judge in Kentucky has ruled that a deceased retirement plan participant's ex-wife should get surviving spouse benefits although the participant had remarried before he passed away." (PLANSPONSOR.com; free registration required)
Overview: DOL Clarification of QDRO Timing and Modification Rules
Excerpt: "The Department of Labor (DOL) has issued interim final rules clarifying that the mere timing or modification of domestic relations orders will not disqualify them as qualified domestic relations orders (QDROs)." (The Segal Group, Inc.)
Valuing a Retirement Savings Account Such as a 401(k) for a QDRO
Excerpt: "Defined contribution plans have become a very common marital asset in divorce cases. Knowledgeable attorneys are using Qualified Domestic Relations Orders directed at these plans to access a participant's account balance and tap into this ready source of cash to retire marital debt and/or equalize the property settlement." (divorcenet.com)
Chamber Comments on QDRO Regulations: Interim Final Rule Relating to Time and Order of Issuance (PDF)
2 pages. (U.S. Chamber of Commerce)
Hewitt Comment Letter on DOL's Interim Final Regulations on Qualified Domestic Relations Orders (PDF)
14 pages. (Hewitt Associates)
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