Preretirement survivor benefits

[Guest WGW]

My ex-husband who is 56 has NOT commenced early retirement benefits even though he is not expected to live more than 1-2 years. He most certainly will NOT live to be 65. I have a QDRO which states, "If the plan participant should die before either party has commenced benefits under the Plan, the Alternate Payee (me) shall be entitled ONLY to any preretirement survivor benefits under the plan attributable to the awarded benefit share as would be determined at the time of the Participant's death." The QDRO people at Boeing can't advise me and told me that the survivor benefits people probably won't even talk to me without my ex-husband's consent! I don't know what to do. Is it in my best interest to commence benefits for myself now while my ex is still alive, even though benefits will be at a lower rate, or should I wait until he dies and just claim the preretirement survivor benefit? The word "only" sounds rather ominous to me, and it would be very helpful to know which amount is generally greater so I can make a better-informed decision! Does anybody know? Thank you in advance!

[ETA Consulting LLC]

The Plan that the QDRO is based on appears to be a DB plan. This incorporates a level of actuarial science necessary to determine the value of your benefit today compared to the value of your benefit in the future (mutiplied by the probability that you'd actually receive most of it). Without seeing the actual benefit formula of the plan and accumulated benefit, it will be virtually impossible to calculate. Also, we know the QDRO is likely a portion of the accrued benefit at the time of issue (and your ex-husband has likely accrued additional benefits under the plan).

What we don't know is whether:

1) The Plan is allowing you to take a distribution in the amount of the present value of the anticipated QDRO payment in the future.

2) What the calculated QPSA would be should your ex-husband pass away today (and hence what percentage of that amount you would be entitled to).

3) Personally, I'm not sure if there if the value of the QPSA is automatically less that the QDRO amount should your ex-husband survives to retirement age (presumably age 65). This is, likely, more of a reflection of my incompetence in many of the complexities of DB plans.

Your approach should be to:

At least attempt to ascertain whether a QDRO distribution is currently available from the plan. If so, what the amount is. This "may" be the only basis for your decision given the difficulty in calculating the QPSA amount should your ex-husband passes away today.

Good Luck!

[david rigby]

... the survivor benefits people ...

It's not clear what this means.

Is it in my best interest to commence benefits for myself now while my ex is still alive, even though benefits will be at a lower rate, or should I wait until he dies and just claim the preretirement survivor benefit?

An excellent question. Your first source of information should be your attorney.

[K2retire]

The QDRO people at Boeing can't advise me and told me that the survivor benefits people probably won't even talk to me without my ex-husband's consent!

It is appropriate and usual for the employer to not advise you which way to go. There are too many options and they don't want to take on the liability of making a recommendation. Ant they probably aren't trained in that sort of financial planning anyway.

But if you have a domestic relations order that they have acknowledged as a QDRO, I am troubled by the idea that they won't talk to you without your ex's consent. As an 'alternate payee" you have rights under the plan that are not dependent upon his consent. Your attorney should check on that as well.

[mbozek]

Survivor benefits will not talk to ex-spouse because she is not a survivor of a deceased participant and because of privacy concerns for employee. Only rights ex has under the plan is to commence benefits based on employee attaining early retirement age.

[eeyore]

I think you are getting the old run around, though it may be due to internal red tape as opposed to animus. You should press Boeing to provide you with two estimates: (i) if commenced by you December 1 (assuming your husband hasn't died before then), and (ii) if your ex-husband dies next week and yoyu start benefits on December 1. This is information they should be willing to give you. You might find the amounts are not very different, but then I haven't seen this QDRO or the plan terms. If pressing them doesn't work, you will need an attorney to do it for you.