QDRO Administration

[Guest awallace]

Past 401(k) vendors I have worked with have provided the employer with a "checklist" to help the employer determine if a QDRO was acceptable.

The new vendor we work (Putnam) with tells me that they offer no such guidance.

Where can I find instructions for administering a QDRO?

[QDROphile]

A checklist is inadequate for administration. At best, it is one tool. Entire books cover the subject. The concept is simple, but the execution can be very complicated, especially because most drafters of domestic relations orders (including laywers) are not knowledgeable about benefits law or plan design. Your plan must have written QDRO procedures. Good ones will cover most of what comes up regularly. You should also have a copy of the Dept. of Labor's publication on QDROs. Available at www.dol.gov/dol/pwba and at (800)998-7542. Beware that the DOL has some misguided notions about how to deal with QDROs and you need to decide whether to conform to the DOL view or the law. That last statement is sure to draw some attention!

[Guest Bob Collins]

Panel Publishing offers a book titled "Qualifed Domestic Relations Order -- Forms and Worksheets" This book may provide a good starting point for you and the plan's attorney Try 212-597-0200

[Kirk Maldonado]

You could always read Code Section 414(p).

It's pretty short and there are only about 10 requirements that need to be met, and, at least in the case of a QDRO issued with respect to a defined contribution plan, they are all very straight-forward. For example, one of them is "what is the name of the plan?"

I wouldn't recommend buying a book to explain what you could read and easily understand in a few minutes. At the least, you might want to consider trying to read the statute before you decide to buy the book. You could save a lot of time and money if you just read the statute yourself.

[This message has been edited by Kirk Maldonado (edited 05-22-2000).]

[Guest [Pat M]]

Several companies/TPAs provide complete outsourcing solutions for employee benefits, including stand-alone QDRO administration/qualification services. Please feel free to e-mail me if you'd like more information about companies that administer QDROs, or the Institutional providers who offer add-on QDRO administration using QDRO administrators.