payout without settlement agreement

[Guest JD698]

A participant in a DC money purchase pension plan wants a payout.

He has provided a foreign divorce decree from Africa.

The divorce decree makes no reference whatsoever to finances or any distribution of property.

The participant states that there are no settlement agreements in his country.

As there is no settlement agreement or mention of distribution of property or finances,

I don't think the Fund can authorize payout to the participant without a notarized waiver from the ex-spouse.

Am I correct?

How should the Fund proceed?

Has anyone ever encountered this problem???

[mbozek]

I dont know what else you can do other than retain counsel in the country to confirm the validity of the divorce. It is not unusual for divorce decrees to have no property settlements where there is no equitible distribution rights in divorce. All the plan admin can do is have the employee sign an indemnificaton and hold harmless agreement reimburse the plan if a spouse turns up. I dont see how the PA can refuse to pay the benefits until the ee provides the signature of an ex spouse if he has presented a valid divorce because he may not know the ex's where abouts. I think there is also a recent DOL opinion this issue. There was a case a few years ago where a PA refused to pay death benefits to a spouse because of allegations that the spouse had abandoned the employee. The spouse had to go to ct to get the funds and the ct ordered the plan to pay legal fees to the spouse.

[Harwood]

What is the plan's procedures regarding QDROs?

I think it is very common [and definitely in conformance with California law] that unless someone has sent written notice to a plan that they are claiming part of a participant's balance, the plan can distribute all monies due to the Participant.