QDRO - Failure to Administer

[Guest num1sherm]

I think I've got an alienation problem. DRO was approved in 2000 by Plan Administrator but never actually communicated to record keeper. In 2001, Plan Part. terminated employment and moved out of state and in 2002 withdrew his entire account and ex-spouse never got a cent. I suspect that Plan Part. probably thought that account segregation had occurred since his account balance on distribution date was much less than it once was (due in reality to investment losses). What is the PA's liability? Probably not possible to get Plan Part to disgorge or repay (assuming he rolled it over into an IRA or other plan) his excess distribution and ex-spouse has come looking for her $$. Suggstions are to corrective actions or settlement terms with ex-spouse?

[Mike Preston]

AP is entitled to her monies.

Assume A and B are unrelated participants in your plan. What would you do to participant B's benefit entitlement if you overpaid participant A? What would you do to get it back?

[mbozek]

The AP has a claim against the plan. In Stewart v. Thorpe Holding Company PS PLan, 2000 WL 333377, the 9th circuit held that an ex spouse had a claim for benefits against the plan because she notified a fid of the issue of a DRO by a state court before the employee received a distribution from the plan the entire account balance. Under the decision it wasnt necessary that the DRO be approved as a QDRO. In the above case the PA actually approved the QDRO.