david rigby

Some of the facts in the original post might raise questions. Many (not all) plans require some period of service before becoming a participant. Often, that period includes a requirement of working at least 1000 hours. Prudence might lead one to make sure the employee in question is actually a participant.

IRC 414(p) defines QDROs. You should read the definition in subsection (p)(1).

Could be, but it might depend on the sponsor's structure and (of course) the plan document. I've seen many documents that automatically terminate a plan if the sponsor is dissolved and/or bankrupt.

Nothing in the definition(s) of a QDRO requires anyone (other than the court) to sign, but applicable state laws and/or court procedures might do so. It's acceptable to include multiple plans in a DRO, so long as they have the same plan sponsor.

Has the Plan followed its claim procedures?

I think the Plan tells you what to do.

Maybe too late: the plan is not required to adopt the age 72/73 changes. It makes a difference in the portion subject to rollover.

Or they could consider terminating the plan now and creating a Qualified Replacement Plan. It might not eat up all of the excess, but it could shelter some of it from the 50% reversion tax. The enrolled actuary can make the calculations to determine if this is worthwhile, which includes a reasonable estimate of how the 415 limit might increase.

Implied in the OP is that a Form 500 has been filed. Please clarify.

The Plan will want whatever information is relevant to determine the amount and timing of the distribution to the Alternate Payee. It will not care whether those dates have specific names, such as wedding, separation, divorce, date of cohabitation, etc. (Likely the court will want to know. 😉)

Why is it the task of the Plan Administrator to calculate the fraction?

The Plan will not care. The Plan is concerned with the specific QDRO requirements as outlined in IRC 414(p), and with making sure the requested form, timing, and amount of payment are permitted under the terms of the plan document.

The last sentence of the original post implies that @LMR is paying some fraction of his retirement benefit directly to his ex-spouse. Is that accurate? If so, it is NOT what a QDRO (or other-named court order) is intended to do. But the post also says, "no QDRO", so perhaps the divorce decree and/or property settlement does expect such direct payment. If so, the comment above from @Effen makes sense: it is logical to assume the court meant COLAs to be included (ie, that's exactly why the court included a fraction rather than a dollar amount).

Pretty much what?

1. Is "games" supposed to be "gains"? 2. There is a recent discussion thread that suggests non-qualified plans are unlikely to recognize a QDRO. https://benefitslink.com/boards/topic/71731-how-likely-is-it-that-an-unfunded-deferred-compensation-plan-does-not-recognize-domestic-relations-orders/ 3. Any qualified plan will not care what's in the divorce decree, rather what is in the DRO. 4. All of your questions should be addressed to your attorney. 5. Probably "separate", but that is just my opinion.

The above word "allows" might imply some discretion. The document probably does not include discretion but check carefully.

Ok, I'll bite. Why would anyone want voluntary after-tax contributions to a DB plan? What is the proposed method of tracking these amounts? Crediting any earnings?

In addition, Timing is important: Very likely, any change that applies would take effect at the beginning of the next plan year. You should ask your HR rep (assuming that exists) what changes might apply and when. And take into account that some plans require participants who are no longer employed to begin their payment (in whatever form they choose) at Normal Retirement Date (often, age 65) so that your proposed delay may not be permissible under the Plan provisions.

Have you read the Summary Plan Description (SPD)?

Yeah, that is my experience also. However, I recently encountered a situation (termination of employment in the mid 90's) that pointed in that direction; the plan sponsor kept digging and found a letter that proved the opposite. So, the lesson is: don't jump to conclusions too easily and keep your documentation.

Your title says "non-qualified", so we will assume this is a payment from the company rather than a payment from a (qualified) plan. Without knowing any details beyond your statement, it seems likely the 20% is incorrect. That percent applies to a payment (usually a lump sum) that is rollable. It is very unlikely that any payment from a non-qualified plan is rollable to an IRA. BTW, you used the word "taxable", but I think you mean "tax withholding rate"; your actual tax rate will be based on all your taxable income, deductions, etc. Are you receiving a W-2 form each year for IRS/tax reporting? If so, there might be a default withholding rate but there is no mandatory rate; you can submit a W-4 to elect your withholding status (not a W-4P, which applies to a payment from a qualified plan). I'm not a tax expert so I hope other readers will chime in here to confirm or correct my statement(s).

Also relevant is whether there is, or might be, some regular work hours on that day (ie, without regard to it being a Sunday).

We've seen it. The PBGC does not do "matured" or "expired" plan. They insist on the forms 500 and 501 being filed, even if everything is zero. I think the PBGC is wrong, but it's not worth fighting.

Sometimes, research is not difficult. https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

No big deal. In my observation, it happens more frequently than you might think. In fact, the PBGC does not seem to accept the reality of a "matured plan", and they insist on a formal termination. Final forms (both PBGC and 5500) must be filed but it's OK if they all contain zeros. This also gives you the opportunity to file a PBGC premium form (all zeros) with "final filing" checkbox. Make sure you have the proper documentation and bring document(s) up to date. Also, in similar cases, I've observed that the sponsor elected NOT to file for IRS determination review and just filed final 5500.