Guest JD698 Posted March 30, 2004 Posted March 30, 2004 A divorced participant in a DC MPPP wants a payout. He has provided his divorce decree and settlement agreement. No reference is made to this plan whatsoever. The only reference is to a 401K plan, separate and apart from this plan. The settlement agreement is very detailed and it is odd that there is no mention of this plan. We are requesting copies of the Rule 401 Financial Statements, referred to in the settlement agreement to see if the MPPP was disclosed by the participant. If the MPPP was not disclosed I don't see how we can authorize payout w/out a signed, notarized waiver by the exspouse. Is this correct? If the MPPP was disclosed, can a payout be authorized or should we get a signed notarized waiver?
E as in ERISA Posted March 30, 2004 Posted March 30, 2004 Why do you think that you still need spousal consent when the participant is divorced?
david rigby Posted March 30, 2004 Posted March 30, 2004 Is this participant still an active employee? What does the plan say about when distributions can occur? must occur? 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.
Guest JD698 Posted March 31, 2004 Posted March 31, 2004 The participant's employment was terminated. He is entitled to a payout. He is requesting a lump sum payout. The parties waived their rights to the other party's assets that were disclosed in the Financial Statements exchanged between the parties. If the pension was not disclosed in the Financial Statements then the ex wife did not knowingly waive her rights to it and could later make a claim for it.
Harwood Posted March 31, 2004 Posted March 31, 2004 It is admirable to try to protect the rights of a potential Alternate Payee. But the first rule is that you must follow the law and the plan document. Do the QDRO procedures for this plan state that there is a pending QDRO only if written notice has been received from a potential Altenate Payee? In this case you seem to be chasing a QDRO that does not exist.
TBob Posted March 31, 2004 Posted March 31, 2004 It seems to me, based on the information you provided that you do not have a pending DRO. Absent some additional information to the contrary, you have a divorced participant that is entitled to a distribution and no spousal consent is required. I am not an attorney but the only thing that I might questions is...Is a Divorce Decree from Africa valid in the US. I don't know if you have a duty to question it but I would be curious. My 2 cents worth...
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