1 Year Wait to be Deemed a "Spouse"

[ERISA1]

Our (Datair) document defaults to impose a 1 year marriage requirement before a spouse is deemed to be a "Spouse" for QJSA and QPSA consent requirements. We have some clients saying it is difficult to administer this; e.g., distribution paperwork asks 'Are you married'; not 'Have you been married for 1 Year'. The clients want us to amend their plans, but first, want to know whether the 1 Year rule is the common approach or not.

I will greatly appreciate your responses as to your approach and your thoughts about how the industry in general draft their plans.

Thanks.

[Guest KristenE]

I have been with my current employer for about 8 months after being out of the industry for 15 years. I was surprised that we had this in the plan document for our clients, and I have yet to see any one ask any questions regarding the marriage status of terminated participants when processing distributions. I also wonder what the advantage of having this in the plan document? Are there any?

[masteff]

I'm sure there are other orgins to it but my experience it's about adverse selection and death bed marriages.

True story -- When I worked at a large corporation, w/in the Benefits Dept, we'd refer to certain plan amendments by name of the executive who was the cause of that amendment. The amendment which removed the one year marriage requirement was named for an executive dying of cancer who married his girlfriend. The amendment plus their near death bed marriage gave her a lifetime income where no legal right existed before.