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Can I get some input as to the range of fees that are being charged by attorneys for drafting a basic QDRO after having already been supplied a sample? QDRO involves a relatively simple 50-50 split of contributions made between period A and period B. Obvious from supplied divorce decree that they divorced without counsel and are attempting to split the assets in the manner. I'd like to tell them that they would save money by retaining counsel rather than submitting it to me over and over until it's correct, but really have no clue as to the time and expense involved in a manner such as this.

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Why bother doing the legwork for the participant? Assuming you represent the plan and/or the TPA, perhaps you could tell the participant that you will reviewing the draft, not providing the "how".

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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Why bother doing the legwork for the participant? Assuming you represent the plan and/or the TPA, perhaps you could tell the participant that you will reviewing the draft, not providing the "how".

Wasn't planning on doing the legwork other than telling the participant that the cost in terms of time and money would be less by going to an attorney and having it done right the first time. Trying to get an answer to the questions that I know will come up (why can't I do this myself and how much will this cost me?). Plan's procedures are to provide required changes for various missing components. Gotta be cheaper and easier for me if there aren't any to make, doesn't it?

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You are on thin ice if you represent the plan or are a plan fiduciary and have any involvement with personal matters of the particpant or a beneficiary, including how to deal with the plan in their efforts to divide plan assets. Once you go beyond a naked recommendation that they seek legal assistance you are exposing yourself or others to liability. You may explain the plan's charges and provide estimates, clearly explained as such.

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  • 2 weeks later...

About $400 to $1,000, but more likely closer to the $500 area. And I see nothing wrong with the plan saying to the P/AP, "Look, you might save some time and money if you hire an attorney - they shouldn't charge you more than a $1,000, and it will probably be closer to $500. You can call the state bar for a referral if you can't find one."

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Here are some random thoughts:

I think that the amount of the fee would depend on whether the plan is a defined contribution or a defined benefit plan.

Although not relevant here, some governmental plans and some multiemployer plans have rules that could complicate the drafting process.

I think that if you don't know any good ERISA attorneys in your area, my recommendation is for you to contact some other TPAs. Most likely, they will have worked with a number of them over the years, so that they will have a basis for recommending one. They are probably in the best position to know the quality of the work of the different ERISA attorneys in the area.

I think that such a fixed fee would be limited to preparing the first draft. If the attorney ends up with an obsteperous attorney that represents the plan or one of the spouses, the fees could escalate quite rapidly.

I worked on a QDRO at least 15 years ago where my fees were about $50,000. It involved two very wealthy spouses (I guess that goes without saying) who really hated each other and were extremely combative. The husband was so awful that the court forbad him from ever seeing his son again. I represented the wife, who told me that if their son ever got the father alone, he would try to kill him. The whole situation was so ugly that if I had known ahead of time what I was getting myself into, I would have turned down the work no matter how much my fees would be.

Kirk Maldonado

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