QDRO Payment on a specific date, plan valued annually.

[Guest JPAdmin]

Can anyone provide some guidence on a QDRO that is ordered to be valued through first quarter of a prior year when the plan is valued annually?

[david rigby]

A QDRO cannot change the terms of the plan, so it cannot force the plan to add a valuation date. Thus, the response to the QDRO might give the prior valuation amount and a statement that the plan investments are valued only once per plan year.

However, the Plan might already contain language that permits the Plan Administrator (not the TPA) to order an additional valuation date. I'll leave it to others to decide if, and under what circumstances, that is a good idea.

[QDROphile]

The other option is that it is not a QDRO because it specifies that the plan do something that the plan does not. I prefer pax's response. State the award to the alternate payee based on the last valuation date before the specified date and make sure you explain in the notice how and why you got there.

[Guest JPAdmin]

Thanks for the assistance. I wanted to make sure I was reading the guidence correctly.

[KIP KRAUS]

I agree with all the previous responses. In addition, if we are talking about a 401(k) Plan the litigants can come up with any agreeable dollar amount that they want to calculate form the last valuation date to the date they are wanting to use. Have the QDRO give you the dollar amount. This is not uncommon.