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Technical Requirements of a QDRO


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Purported QDRO identifies plan as "XYZ, Inc. Profit Sharing Plan" when in fact the name of the plan is "XYZ, Inc. Amended and Restated Profit Sharing Plan". Technically, the DRO should be rejected, but practically speaking is that what most plan administrators would do? or would they accept it? Thanks.

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In the booklet "Divorce Orders & PBGC," it states "A QDRO also must identify the name of each plan to which the order applies -- if possible, this should be the plan's formal name."

Whenever there is no other plan for the company with a similar name, I accept plan names in a DRO that are not exactly the formal plan name.

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If the incorrect plan name cannot be confused with another, then I vote for the use of common sense. The plan's QDRO procedures might already permit this.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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I agree with qdrophile. If I see any ambiguities in an order, in my acceptance letter I tell the parties, this is how the order will be implemented. If this is not what you intended, you may need to enter an amdended order.

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Most qualified plans provide an statement in the introducton or in the definition section that the plan is a restatement of a previously established plan. The statement may also appear in the board resolution adopting the restated plan and should be noted in the 5300 filing. If the restated plan is the only plan the employer has ever maintained there is no need to be picky with the titile of the plan.

mjb

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  • 4 weeks later...
Guest Kevin A. Wiggins

The DOL's guide on QDROs says the following: "[A QDRO] may be incomplete only with respect to factual identifying information within the plan adminitrator's knowledge .... For example, an order may misstate the plan's name ... and the plan administrator can clearly determine the correct name[ ].... In such a case, the plan administrator should supplement the order with the appropriate identifying information, rather than rejected the order as not qualified."

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