Another Assigned Benefit Question

[FJR]

Have a signed QDRO, March of 2004. Determination Date is 10/1/2001. The Assigned Benefit is for a specific Dollar amount of the Participants Balance, assigned to AP, "without adjustment for losses".

Should I calculate the earnings from 10/1/2001 until the last valuation (3/31/04) but not include losses? This does not make sense to me. Any help is appreciated

[QDROphile]

You could choose to disqualify the order because it is ambiguous. You could qualify it and interpret it any reasonable way you wish. If you choose the latter, you should state in the notice of qualification that the determination of qualification is subject to the interpretation and then describe very clearly and carefully how you interpret the order. It would be best to use actual numbers to show the effect of the interpretation. Make sure you send copies to the lawyers.

I am assuming you have procedures in place to delay implementation for a reasonable period so either party can object to the interpretation. The ability to object and correct your "mistake" is the key to the more aggressive approach to qualification. If either objects, but they are in dispute over the "real" meaning, then you simply disqualify and let them work it out in state court. That is why the qualification is conditioned on your interpretation. If you are wrong and can't comfortably correct yourself, they are back to the disqualification that you could have imposed from the beginning.

One possible interpretation is that you adjust for neither earnings nor losses. The dollar amoount is simply brought forward. The problem with that interpretation is that if they wanted a set dollar amount without any adjustment, they would not need to say anything about the "Determination Date." But lawyers are stuck on words and forms, especially when they don't know what they are doing (as shown in your order), so don't give them too much credit for sophisticated drafting.

Make susre you are behaving consistently with the plan document and the plan's written QDRO procedures, and don't rely on the Message Boards for advice.

[FJR]

Thanks, extremely helpful!