Domestic Relations Order Outsourcing?

[Guest TanyaB]

Hello,

I administer a 401k plan in a corporate envirement. To improve efficiency and keep the costs down, we are looking at outsourcing the administration of the incoming DROs from employees. Can anyone recommend companies that do this (we are already looking at QDRO Consultants)? Thank You!

[david rigby]

My only recommendaiton is to review this Forum: http://benefitslink.com/boards/index.php?/forum/89-qualified-domestic-relations-orders-qdros/.

It's very easy to administer a QDRO wrong, so your "interview" process should be very cautious, and detailed.

[QDROphile]

Determining qualification is a fiduciary function. You need to understand if the service provider will be functioning as a fiduciary with full responsibility of if the service provider is going to try to duck the responsibility and leave the plan administrator responsible. If the plan administrator remains responsible, then the plan administrator needs to attend to that responsibility. If the service provider is going to be the responsible fiduciary, then the appointing fiduciary needs to monitor as it would for any other appointed fiduciary. One question: Who is responsible for the written QDRO procedures? Then you need to figure out if the QDRO fiduciary is handling plan assets and is required to be bonded. Interpreting domestic relations orders and determining qualification involves the ability to direct the dispostion of plan assets. Maybe that becomes a test question for your interview. If you are having the participant/alternate payee bear some of the administrative cost of the QDRO processing, then the plan administrator has to determine that the cost is reasonable.

[Guest ghenson08]

Have you asked your ERISA attorney's to take it on? We have a paralegal do this for us and it works out great.