Multi-employer QDROs and Butch Lewis Act

[JM]

I'm curious to know if anyone has any language for use in a multi-employer plan QDRO that addresses how the AP's share will be affected in the event that the participant receives either a lump sum or installment payments as a result of the Plan's qualifying for funds under the recent Butch Lewis Act?

Thanks in advance! 

[Peter Gulia]

I have not considered how that law and whatever funding might be provided affects a participant’s benefit rights.

But in the theory of ERISA § 206(d)(3), one might write an order to provide an alternate payee alternative shares and payments following the occurrence or non-occurrence of a contingent event.

What matters is whether the order “clearly specifies” the command the plan’s administrator is called to act on.

“A domestic relations order meets the requirements of [ERISA § 206(d)(3)(C)] only if such order clearly specifies— . . . (ii) the amount or percentage of the participant’s benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined, [and] (iii) the number of payments or period to which such order applies[.]”

ERISA § 206(d)(3)(C)(ii)-(iii), 29 U.S.C. § 1056(d)(3)(C)(ii)-(iii) (emphasis added).

http://uscode.house.gov/view.xhtml?req=(title:29%20section:1056%20edition:prelim)%20OR%20(granuleid:USC-prelim-title29-section1056)&f=treesort&edition=prelim&num=0&jumpTo=true

If I were advising the plan’s administrator, I might tell them not to accept an order unless it leaves the administrator in no doubt about exactly what to do or not do.

[JM]

Thanks Peter and I completely agree with you!