Alternate Payee and Participant?

[Guest ERISAQUEEN]

We have an alternate payee who is also a participant in a defined benefit plan. The alternate payee is eligible to receive a distribution related to the QDRO as the former spouse has reached his earliest retirement age. The alternate payee is also an active plan participant. The Plan is silent as to whether an alternate payee may receive benefits under the plan while actively employed.

Based on my review of the Code and guidance issued by the IRS and DOL, there does not appear to be any restrictions that prohibit the Plan from distributing QDRO benefits to the alternate payee. In fact, one could argue that denying benefits to the alternate payee places an encumbrance on the exercise of the alternate payee's right to benefits.

I would greatly appreciate comments on this....

[david rigby]

Some similar discussion:

http://benefitslink.com/boards/index.php?showtopic=26068

[Guest ERISAQUEEN]

Thank you, this was very helpful.