Restoration of Alternate Payee

[Guest Kevin Wiggins]

If (1) a participant forfeits unvested benefits, (2) as a result the AP forfeits some benefits, (3) the participant is re-hired and restores his or her unvested benefits, then must the plan (4) allow the AP to restore the forfeited benefits?

[david rigby]

Interesting. Seems doubtful that the plan allows the participant to restore only part of the non-vested amount previously forfeited.

[Guest Kevin Wiggins]

The participant would restore all of his vested benefits. Does the plan have to let the AP do the same?

[Harwood]

I think it depends upon the terms of the QDRO.

Some split non-vested assets and allow an Alternate Payee to gain additional vesting as the Participant accrues additional vesting.

Many QDROs, however, give the Alternate Payee a percentage of only vested assets at a certain date; additional vesting for the Participant has no effect on the Alternate Payee amounts.