QDRO Expenses and Defined Benefit Plans

[Guest hb95]

1. May a defined benefit plan require the participant/alternate payee to pay QDRO related expenses? If so, what method have you found to be the best way to accomplish this (i.e. subtract from distribution; prepayment by the individual; other)?

2. I have not found any direct guidance regarding DB plans and QDRO expenses. Is there any DOL guidance relating to QDRO expenses and DB plans?

[rcline46]

First - DB plans pay a benefit, so ask yourself what authority is there to reduce an accrued benefit?

Second - if you take money from a benefit payment have you in fact reduced an accrued benefi?

Once you answer these questions, you will have found your answer.

[PensionPro]

Couple of prior threads on the topic ...

http://benefitslink.com/boards/index.php?/topic/20684-qdro-processing-expenses-for-db-plans/

http://benefitslink.com/boards/index.php?/topic/41002-qdros-reasonable-administrative-fees/

[david rigby]

For additional discussion, search the entire forum: http://benefitslink.com/boards/index.php?/forum/89-qualified-domestic-relations-orders-qdros/

using a search word such as "expense".