Requesting info and guidance on 26yr old QDRO?

[kiowa_58d]

Hello,

Newbie to this forum so please forgive my ignorance on this issue.  I recently retired from the military and moved back home to help my aging mother.  I will try keep this short and to the point.

My mother is currently 71, married and lives in NC.

I recently looked at divorce paperwork from an earlier marriage she was involved in where the separation agreement was filed in a CO district court in 1991.

Her ex spouse is a cardiologist in CO, still practicing and part owner in the very large practice.

In the separation agreement I discovered a QDRO was to be used to ensure my mother received $25,000 from the practice's pension plan.  

My mother did trust this man and they split on good terms, but she simply relied on him to make sure he complied with the terms of the agreement.  When I recently asked, she was unaware she was entitled to the $25k and confirmed she never received it.  She also did not have a lawyer.  The doctor had the paperwork prepared by his and she  just showed up and signed.  I know it was not the smartest thing for her to do but I was too young to know better at the time and she really had no idea either.

Again the doctor's practice is alive and well today, but they have added a word to name of the practice.  The pension plan also exists under a slightly different name from what comes back in a google search and has substantial assets.

Needless to say, this guy is easily a millionaire several times over by now and my mom deserves what she's entitled to.

How should I go about collecting on this QDRO?  

My thoughts on how to proceed:

1 - send the doctor a letter (with a copy of the separation agreement)  and ask him if he just wants to write a check and be done with it

or

2 - use a lawyer to collect (less desirable)

 

I appreciate your time and any and all ideas you may have to help.  Thank you.

 

  

[ETA Consulting LLC]

At the time it is issued by the court, it is only a DRO (Domestic Relations Order).  It is written with the presumption that it will become a QDRO, but it doesn't become qualified until the Plan Administrator qualifies it.

With that said, it appears as if this may have never been submitted to the Plan to be qualified.  Once this happens, then the plan would separate the benefit and track it (under whatever protocol that plan has for handling QDROs).

I guess the question for you to ask is whether or not it was actually submitted to the plan to be qualified.  If it did, then there may be some account of what has transpired since then.  If it wasn't, then this may be the disconnect.  It 'may' be the case that it was submitted and paid out.  I'm just throwing out random possibilities, but the series of events from the time the DRO was issued by the court to now seems to have some gaps.

Good Luck!

[kiowa_58d]

So from my lack of knowledge on this issue and based your response, it looks as though my best course of action would be to hire a lawyer in CO to follow up on this.  My mother is certain she did not receive any financial payments from him.

[david rigby]

Let's add a little clarification to the sequence of events, at least approximately. You want to prepare a draft DRO, and have it reviewed by the Plan Administrator.  When they say OK, only then do you get the court to issue it's final order.  At that time, the PA will review the court's order, confirm that it agrees with the previously-reviewed draft, and declare it to be "qualified".

[ESOP Guy]

Before you hire an attorney you might just want to talk to the ex-spouse and see if the plan has a benefit for your mom as an Alternate Payee.  It is possible she is due the money but the plan provisions don't allow them to be paid until some triggering event. 

The ex-spouse might be able to say she got paid and show that it happened and your mother forgot about the payment. 

A simple conversation won't hurt and could save you costs.  If the conversation doesn't result in what you think needs to happen then you can hire the attorney. 

[Kevin C]

Before you go to the expense of a lawyer, I'd suggest having your mother file a claim for benefits.  As part of the claims process, they are required to determine what she is eligible for and notify her of the results.  If they decide she is not entitled to anything, they are required to explain why and refer to applicable sections of the plan document.  Help your mom write a letter addressed to the plan that specifically says it is a claim for benefits and ask for the  her benefits to be paid. Attach a copy of the divorce paperwork.  I would also ask for a copy of the SPD and the plan's QDRO procedure.  Then, let us know what their response is.

I would also keep in mind that the wording of the assignment will make a big difference in how much the benefit is worth now. Typically, the QDROs we see assign an amount or percentage as of a date and it is adjusted for income going forward.  Every once in a while, we see one that specifies a dollar amount with no adjustments.  With this going back to 1991, that can be a big difference.