DB Plans and Marital Interest

[Guest zoom d]

Thank you for your responses.

[david rigby]

To the best of my knowledge, the provisions of a "divorce decree" are not relevant. The plan cannot divide the benefit between X and Y. The only document that can do that is a Qualified Domestic Relations Order.

[mbozek]

Zoom: who are you asking this question on behalf of?? the plan administrator or one of the spouses? The PA for Plan B cant do anything until a domestic relations order is presented then it must follow plan procedures to determine whether the dro is a QDRO. My experience is that most dros drafted by divorce lawyers fail to meet the requirements for a QDRO and the atty for the plan has to revise it. As far as what the the rights are, the PA is required to follow the terms of the order -- if the terms are not clear or violate the plan's terms then the dro can be rejected by the PA and the parties can revise it. If the terms are clear and the dro meets the requrements fro a QDRO then the PA divides up the pension in accordance with the ct order. The argument that Plan B was not marital property is a matter to be determined in the state divorce action since ERISA does not preempt state divorce law. The Plan is not a party to such actions and the PA has no discretion to review the cts findings of the division of marital property and must adminster distributions in accordance with the QDRO.

There are several dol opinion letters(92-17A, 94-32A, 99-13A) that describe the PAs duties in reviewing dros.