Failure to Obtain Spousal Consent

[Guest Beth N]

Plan is subject to spousal consent rules, but failed to get spousal consent to several lump sum distributions. It looks like the accepted fix is to go to affected participants & spouses to ask for their consent, and give them the option of repaying the $ to the plan and receiving a QJSA. What if the spouse doesn't consent? The SVP correction method (in Appendix A of Rev Proc 2000-16) indicates that the employer must cough up the $ to pay the QJSA to the spouse, if the participant refuses to return the $ and the spouse refuses to consent. Seems to me there is little incentive for the spouse to consent, which could get expensive for the employer. Anyone have any ideas on how to handle spouses in this situation?

[Guest carsca]

Beth N,

I have a similar issue. How did you handle your issue?

Thanks!