QDRO Expenses

[Guest Keith N]

Is there any guidance related to the expenses incurred by an employer necessary in making a "DRO" a "QDRO". In other words, if the Plan's attorney & actuary review the "DRO" in order to determine what needs to be changed or clarified in order to make it a "QDRO", can those fees be passed on to the participants and/or alternative payee?

As many of you know, if your dealing with an attorney with little or no QDRO experience, you can rack up quite a bit of time getting the DRO qualified.

[Guest F1fan]

You should review Department of Labor Advisory Opinion 94-32A, in which the DOL wrote that a plan administrator cannot charge an individual participant or alternate payee expenses related to administering a DRO or QDRO. Although the opinion may only be relied upon by the applicable party requesting the ruling, 94-32A gives some idea of how the DOL views this issue.

[AndyH]

I haven't had time to look up a cite, but that is certainly my understanding, that you cannot pass on the cost as anything other than a general expense of the trust (which could be paid from plan assets but not debited from anyone's entitlement).

[Guest Keith N]

Thank you both. It was exactly what I was looking for.