Time limits on QDRO, anything I can do?

[Guest Devastatedfamily]

Forgive me for lots of unnecessary information. I don't pretend to be experienced with these topics. But I need help and I am desperate. I'll try to simplify:

Thirty years of marriage - I am 46

We have 3 daughters - two are twins in college.

I discovered affair and filed for divorce 01/13.

Divorce was final 09/13 along with QDRO.

The QDRO states I will receive 100%. This may seem overly generous, but please know that my ex had an issue with job loyalty. He never worked at a company for more than a couple of years. This last employer was the longest at almost 7 years, and I would receive the earnings (?) of that fund for those years. This is where it gets complicated and tragic for us. Just after receiving spousal support payments in Oct and Nov .. My ex contracted the H1N1 virus at age 47 and after a month long coma - died Jan 19, 2014.

We discovered his life insurance had lapsed. We have only the QDRO. i do not know the value of this account. I have received no communication from his employer (PA). It's a small company, well aware of his death. I emailed the person who prepared the order, who then emailed the PA.. who says she is "waiting for calculations". She hasn't even asked me for a death certificate. Meanwhile, we have only the income I make as a teacher aide ($17k), we are at risk of losing our home of 15 years. I found a statement showing a balance a year ago of $93k. Can anyone please tell me what the time frame is to receive these funds? It was never my intention to do anything with this money other than to roll into an IRA for my own retirement. Now I have no choice but to hopefully pay for house. I have a copy of the "profit sharing plan" which is pooled by the employees. The company is owned by the PA. I can't ask my divorce attorney any questions, I can't even pay him for the divorce now with no income to speak of. He did tell me that the QDRO was complete and out of their hands. How long can the PA sit on the funds? Any direction or advice is greatly appreciated.

[MWeddell]

You have my sympathy, Devastatedfamily.

Unrelated to the retirement benefits, you should ask the ex-husband's former employer whether there were any life insurance benefits through his job when your ex-husband died and, if so, who was the beneficiary. When you said that the life insurance lapsed, I'm not sure whether you meant an individual policy or any group benefit through the employer.

The deadlines for responding to the QDRO are vague. The plan administrator must "promptly notify" you of the receipt of the order and their procedures for determining whether the domestic relations order indeed is qualified. Then, "within a reasonable period after receipt of the order," the plan administrator must notify you of whether the order is qualified. If it is not qualified, then your attorney will need to revise the order and start the process again. If the order is qualified, then you'll need to apply for a distribution -- that's usually a fairly quick process for larger plans, but it sometimes can take a long time for smaller plans that are valued infrequently instead of daily.

[CADMT]

Under ERISA the plan administrators must determine whether a domestic relations order is a QDRO within a reasonable period of time after receiving the order. You did not say when the plan received the order, but assuming that it was sometime in the 9/2013 time frame AND considering that you are receive 100% of the benefit, the plan should have qualified the DRO and completed the transfer. You did not say exactly what kind of benefit it was but your use of the "fund" indicates it was a deferred compensation vice defined benefit. If that is the case, the account should have already been transferred into an account in your name for you to dispose of in accordance with plan rules. A death certificate is not necessary, only a valid order signed by the court. Valuation of the account should have been done periodically, therefore no calculations are necessary because the account is not being divided. You should contact the plan administrator directly to find out what the delay is and also consider filing a complaint with the DOL. Of course if the QDRO is not straightforward in terms of retirement account there may be some complexities that I cannot address.

[K2retire]

She also said that the assets were pooled. If that is the case and it is balance forward accounting, that may be the hold up.

[GMK]

I suggest that you contact the Plan Administrator to find out if they received the DRO, if they found it to be qualified (if not, when will they decide), and when you can expect to receive the benefit and how to apply for it.

If the Plan hasn't received it, contact your lawyer to confirm that "complete and out of their hands" means that the judge signed the DRO, and it was sent to the Plan.

Good luck.

[Guest Devastatedfamily]

As best as I understand it, the QDRO went like this:

My attorney outsourced to the QDRO expert to draft the order compiled from an application completed by ex. It was then submitted to PA for preapproval oct 10. Approval was granted and signed by all parties oct 23. This was then signed by judge on 10/28 in Houston tx. The reason I mentioned death cert is, the order directed all funds up to 09/17 (divorce date) the order has a clause pertaining to "in the case of death prior to disbursement then all remaining funds will be disbursed to alt payee as well" (not exact words) so it seems to me I should have received a disbursement for the amount up to sept 17 and then perhaps an additional small disbursement resulting from a balance of sept 17 until his death of jan 19. All legalities have been filed, signed, agreed etc. She (owner/wife/PA) has been unresponsive and in my opinion cold and heartless. Can I say the company name? It's easily seen online with only 15 or so employees. I don't know what else to do. I called the investment firm who I believed to be managing the employers account and explained to me that when they receive the forms - the disbursement happens immediately especially in a death. But she would not confirm or deny their relationship with employer. So the PA stating that she is waiting on calculations makes no sense to me.

[Guest Devastatedfamily]

I did not mention that this employer offered life insurance as part of the benefit package (a while back) and was then discontinued at some point. That's when my ex obtained policy through fidelity independently. Through the move out / account changes and divorce drama this payment apparently fell through the cracks back in feb 2013.