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QDRO - Can we charge participants?


Guest terbes

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What guidance is there regarding charging a nominal fee for the processing of a QDRO? Can we do this? Is there a max we can charge? Any information will be appreciated.

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No. A QDRO is a feature covered by ERISA, and an employee has a right to process a QDRO. I believe the only fees that can be charged are in relation to optional benefits such as loans and hardships.

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Also, you may want to review this letter.

ERISA Opinion Letter No. 94-32A Application of QDRO exception to anti-assignment and alienation rules.

I believe that the plan (so all participants take a hit) can be charged QDRO admin fees as long as they are reasonable.

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  • 3 weeks later...
Guest PeterGulia

Consider the possibility that the DoL's view descried in an ERISA Advisory Opinion is not the law. Consider asking your lawyer whether s/he would render an opinion that a reasonable charge for QDRO handling can be included in the plan's allocation provision.

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