david rigby

There have been some prior discussion threads on this topic. I suggest using the Search box (upper right) with the term "last day worked".

Be mindful of precedent setting.

Yep. Also, request a copy of the plan's QDRO procedures. if your spouse worked for more than one employer, don't forget to include any others in your review/research.

In general: any optional form of payment is "locked in" at its commencement date, such that no one is entitled to change it later. any J&S option will pay X to the retiree and some portion of X to his/her surviving spouse. The identity of such spouse is "locked in" at commencement date. Divorce and/or remarriage is irrelevant. Very likely, a QDRO is also irrelevant, primarily because most plans don't allow changing a J&S election after commencement, so a QDRO cannot force a plan to do something that is disallowed by the plan. However, some variations might exist (especially if the plan has a governmental sponsor), @Bill Presson's advice is essential.

Trustee? Why isn't the Plan Administrator taking charge?

Most plan sponsors think about their plan(s) in terms of funding. However, for DB plans, the limitation (ie, IRC 415) is based on a maximum benefit. The enrolled actuary can provide details and calculate any limitation applicable to the second plan.

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)?