ALternate Payee Owes Child Support

[Guest TCCACS]

I have a client who is a participant in an ERISA plan. A QDRO was issued in favor of her ex spouse as an alternate payee. The ex-xpouse owes child support arrears to my client. As I understand, a QDRO can not issue against the ex-spouse's, alternate payee's, share of the benefits in favor of the children for who he owes support. Is there any advice on ways of collecting or reducing the alternate payee's share of the benefits to satisfy the alternate payees obligation for support?

[Guest BJB]

This is the same situation that my client faces. The AP received a portion of my client's union retirement benefits at the time of their divorce over ten years ago (property division) through a QDRO. The participant, who is the custodial parent, is not happy that her ex-spouse is now retired and is receiving a portion of her union defined benefits for life, yet he works under the table and has not paid any child support in the last two years.

Why can't another QDRO be issued - this time against the AP -- that directs the monthly payments that the ex-spouse/AP is to receive to a state's child support agency who is collecting support on behalf of the children?

[mbozek]

This is the same situation that my client faces. The AP received a portion of my client's union retirement benefits at the time of their divorce over ten years ago (property division) through a QDRO. The participant, who is the custodial parent, is not happy that her ex-spouse is now retired and is receiving a portion of her union defined benefits for life, yet he works under the table and has not paid any child support in the last two years.

Why can't another QDRO be issued - this time against the AP -- that directs the monthly payments that the ex-spouse/AP is to receive to a state's child support agency who is collecting support on behalf of the children?

As I understand it, under federal law a custodial parent who does not receive child support due under a divorce decree has the right to obtain the overdue funds from the local state child support agency. I think your client's should go to the local state child support agency and request the back child support payments. The child support agency will issue an order to the plan administrator to pay over the retirement benefits currently being paid to the AP to reimburse the child support agency for the funds paid to the participant. See 42 USC 666(b).