ForksnKnives

The first thing I would look at is whether the plan even permits the participant to change payment options after benefits commenced. I've never seen a pension plan that even permitted that change. Not saying no plan does it, I've just never seen it. For the participant's sake I would be interested to know whether the plan's potential mechanism to revert the annuity payments to a lump sum would create a qualified distribution out of an income stream no longer permitted to be rolled over.

Different issues; different laws governing those situations. If an employee wishes to cover his or her spouse under an employer-sponsored health insurance plan then the employee has no choice but to disclose his or her marital status.

What does the plan identify as qualifying life events? That's the first place I would look to determine whether the employee can change enrollment mid-year.

Marriage records tend to be easier to procure than birth certificates, although when you're after certified copies neither is particularly a pleasure to obtain. I agree with leevena, a consistent approach is really important.

The information you are requesting is too specific and too extensive to be answered on a public forum. What you need is an advisory opinion from ERISA counsel. I am sure you can obtain that opinion from an ERISA attorney in your state.

Agreed. In Texas you could have a settlement agreement that is not incorporated into the divorce decree but still operates as an enforceable contract between the former spouses. Without incorporation the family court would not have the power to issue a DRO on anything not incorporated so it wouldn't make sense to leave the retirement accounts out of the decree itself or an incorporated settlement agreement. Usually in Texas I expect to see settlement agreements left out when the parties are pro se or the settlement agreement includes property of little value and was informally agreed to by the spouses, such as a verbal agreement to split the personal property in the house. Personally, I prefer to draft all financial assets, real estate, debts and high value personal property even if the settlement agreement covers those assets. To the OP, if both spouses agree to the amendments then it should not be too difficult to find a local family lawyer to draft the amendments and put it before the appropriate judge.

You are making a few misassumptions of law and fact. Your employer is not automatically a fiduciary because it receives compensation related to plan services or because it desires to receive compensation related to plan services. Nor is a fee paid for plan services impermissible. Nor is the fee automatically a plan asset merely because it is categorized on your pay stub with the pension contribution. You are glossing over the language of the MOA, which probably explains the basis for the fee, to reach the conclusion that the MOA is an invalid contract. The MOA language is probably necessary to determine whether the employer is performing fiduciary functions on behalf of the plan in exchange for those services or merely providing administrative services for a fee. Not all fees paid back to the employer for plan services are impermissible under ERISA. If that was the case then the past ten years of 401k fee litigation would have been resolved a long, long time ago.

I could not agree more.

Unlikely but there could be state fraud claims on the signature on the beneficiary designation forms. Not fraud by the plan but fraud by the boyfriend in procuring the designation. I don't practice probate so I couldn't say whether there are any probate code-related opportunities for the family and I don't know what state's law would be applicable here. There may not be valid claims but that's why the family would want to hire a lawyer to research their options and not for the plan administrator to try to manufacture reasons why the designation might be invalid.