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Guest cosmo01
Posted

We have a QDRO that includes as part of the Alternate Payee's benefit, all future benefits accrued after the date of the order until the date the participant terminates employment. I have always thought that based on the language in the statute that a QDRO cannot provide increased benefits, that this is impermissible, however, I am now questing this thought. Does anybody have any insight into this? Are there any cases or rulings or guidance that specially states one way or another whether a QDRO can include future accruals from a db plan?

Thanks,

Posted

I'm no expert, but I have seen several QDRO's that do this. Where do you think the order is providing "increased benefits"?

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.

Posted

It can be done. The "increased benefits" relates to what the plan is willing to provide as a benefit. It has nothing to do with what part of it the AP gets.

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