QDRO Help

[Guest De26]

I apologize if this has been asked-I'm processing a QDRO and the QDRO states: 50% of account balance with interest/loss until the date of segregation-even through the particpant has continued to contribute, the alternate payee is still entitled to 50%? I've never seen this before-I usually see: 50% of account balance from xxx date and interest until date of segregation.."

Thanks!

[QDROphile]

If you are asking a question about how much of an account an alternate payee might be entitled to legally, the plan does not ask such questions.

If you are asking how to interpret some QDRO provision to determine what an alternate payee gets, you have to post the provision. What you posted makes no sense to me.

[Guest De26]

If you are asking a question about how much of an account an alternate payee might be entitled to legally, the plan does not ask such questions.

If you are asking how to interpret some QDRO provision to determine what an alternate payee gets, you have to post the provision. What you posted makes no sense to me.

I believe you answered my question-"the plan does not ask such questions" That was how the provision reads in the QDRO-" The alternate payee shall receive 50% of the account value up to the date of segregation." We will pay-I always get nervous paying QDRO-Liability

[QDROphile]

Since I perceive an interpretation problem, I suggest that the plan's notice of detetermination state what the plan is going to do in a better way than what the QDRO says the plan should do, and invite dispute over the interpretation for some reasonable time (30 - 60 days) before paying. If the plan overpays based on a mistaken interpretation, remediation may require a lot of effort or expense.

[GMK]

An approach you might use is, once you've determined that the DRO is qualified, send the interested parties a letter that lists the segregation date (which is usually prior to the actual payout date) and a description of what the plan has done / will do.

The Plan has segregated $nn,nnn.nn from the participant's account, subject to separate accounting, for the benefit of the alternate payee. This sum equals 50% of the participant's account balance, including interest/loss, as of the segregation date. Blah blah about the alternate payee's options for receiving the distribution and the timing of the payment to the alternate payee.

As QDROphile already posted ..