Plan administrator delaying process

[Guest frustrated123]

This has been an absolute nightmare. We submitted the initial QDRO to the plan administrator for approval in December 2009. Several weeks later, they approved the QDRO and my attorney sent off the QDRo signed by the judge. This was in late January. In March, I contacted the plan and they said it had to be "reviewed" by their board and there are 32 QDROs ahead of mine. Now it's almost June and I can't get a straight answer out of any of them. Are they allowed to just hold onto it even after it was approved?

I understand things do take time, but this is frustrating. My attorney has called them several times and have not had any luck. Does anyone have any ideas?

[QDROphile]

A plan administrator is required to determine qualification within a reasonable time. Some people mistakenly believe that means not later than 18 months.

The prior review was probably not a determination of qualification. A plan determines whether or not a domestic relations order is qualified. Until the order was issued by the court, it was not a domestic relations order.

I am not really addressing the heart of what you are asking. The answer depends on the circumstances and there are a more circumsntances than you can report.

[GMK]

Agreed.

What you sent in December was a draft DRO (domestic relations order). The plan told you that they didn't see anything wrong with it (which does not mean they approved it as a QDRO).

As QDROphile notes, when the judge signed it, it became a DRO, and the plan's "board" will now review the DRO to see if it actually is qualified. If the board determines that it is qualified, the DRO becomes a QDRO (Qualified DRO). If they determine that it is not qualified (which shouldn't happen since you sent the draft for review, but it could), they have to tell you in writing what's wrong with it.

We can see why you are frustrated, but the plan is within its rights to take several months if that constitutes a "reasonable time" for the review.

The plan has a serious obligation to thoroughly review each DRO in determining whether it is qualified, and that can take some time. In my opinion (for what that's worth), however, they should give some priority to getting the reviews done promptly, and they could give some priority to DRO's that were previously reviewed as drafts (but they don't have to).

[david rigby]

Good advice above.

... they approved the QDRO...

Just an opinion: don't assume a conspiracy or gross incompetence, but they may have made a mistake in the first, or the second, communication to you. Consider a review of whatever documentation is involved, just to make sure there really was an "approval" (or perhaps only an acknowledgement of receipt?). If the prior documentation gave an impression of "approval", there may be no harm in asking (in writing) why they now have a different approval process.

[Guest frustrated123]

Ok guys...here it is August and I am still no further with it than I was at the last posting. I have been unable to speak with anyone at the plan administrators office and have had no return phone calls. My attorney has supposedly also made a number of phone calls to them with no reply. Any other ideas on how to proceed?

[rcline46]

Contact your local Department of Labor/ Employee Benefit Security Administration (DOL/EBSA) office, found in the blue pages of your telepone directory, or email them at www.dol.gov