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Restoration of Alternate Payee


Guest Kevin Wiggins

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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?

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

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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Guest Kevin Wiggins

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

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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.

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