Newbie

The participant was vested. Unless the participant was married at death for which there would be a survivor annuity, the plan provides no death benefit. The participant's estate is not claiming anything. There is no side to take. The question is simply whether a state divorce judge can recreate benefits that no longer exist because when the participant died, he was single due to the divorce decree entered the day before.

I am on a committee that is the plan administrator for a defined benefit plan. A decree of divorce was entered ending the marriage between Employee X and spouse. The next day, Employee X committed suicide. Weeks later, spouse applied for and obtained a QDRO for 1/2 of X's benefits. For the plan, the committee denied the QDRO. Our denial was based on the advice of our ERISA attorney and actuary. They explained that the entire benefit "died with X" because he died single and before the plan received or even knew of any QDRO might be coming. The spouse has applied to the divorce judge who decided to vacate the decree of divorce, restoring X and the ex-spouse to married status, due to the "unique and compelling circumstances", including that the Decree had not even been delivered to either X or the spouse by the time of X's suicide. Of course, it's obvious that the motivation for the divorce judge vacating the decree of divorce and pronouncing them married at the time of X'd death is to obtain for spouse a part of the benefits. Our ERISA attorney and actuary both have never heard of an attempt by a divorce court to manipulate a pension benefit in this way, or whether it would be effective to do so. What say you?

Company X has a 401k plan. Partners in X have frequently caused the company to make profit sharing contributions. With new comparability, the company can make varying profit sharing contributions for different participants as long as the testing passes. Right after a year ends, a partner leaves the company. The former partner is claiming that he has a right to have what was a projection of profit sharing contributions prepared and circulated before he left the company. The plan document speaks of the company giving itself as the plan administrator a written notice, designating the allocation. That's not yet happened. Do you know of case law, IRS or Dept of Labor rulings that suggest when a company has acted to the point that its profit sharing discretion is exercised and the company is then obligated to make a profit sharing contribution?