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When is a QDRO payable?


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I was divorced 17 years ago. A QDRO was ordered in our divorce decree. This year (2017) my ex-husband, the plan participant became eligible to retire. He is opting to work for two more years. Do I have to wait until he retires to receive payout?

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First, what is meant by "a QDRO was ordered"?  Has a QDRO been prepared?  submitted to the plan administrator?  been approved by the PA?  (Don't overlook the last item since only the PA can determine if a DRO is a QDRO.)

Second, the plan may (but is not required to) permit your benefit to commence prior to his.  If not permitted by the plan, the DRO cannot add this provision.  Check with the PA and also review how the DRO addresses this issue.

 

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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Hi, thanks for your response.

Yes, the QDRO was approved. Since the divorce I've misplaced all of my documents. I've made numerous attempts to contact the attorney that represented me in the divorce, but have been unsuccessful. 

I do recall this year specifically as the payout date. I have contacted the Plan Administrator and was informed that payout isn't executed until the plan participant retires, resigns or dies. Is it possible that each case differs? How would I get a copy of the divorce papers?

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The payment can be made when the QDRO says it is to be made.  In a defined benefit plan (a classic pension plan), payment to an alternate payee (you) is not usually made until the participant actually retires and starts receipt of benefits, subject to a special rule.  Under the special rule, a QDRO can allow or require payment to the alternate payee to start at the participant's earliest retirement age, defined as when the participant could start receipt of benefits if the participant had terminated employment.  However,the  payment to the alternate payee can be made only when the QDRO says it is to be made, so you need to know the terms of the QDRO.  The plan administrator should have a copy from when the plan administrator determined that the domestic relations order was a QDRO.  A helpful plan administrator would simply answer the question: What is the earliest time I can start to receive benefits?  Most plan administrators will provide you with a copy on request, perhaps subject to a charge for copying.

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18 hours ago, ExWife said:

You have been very helpful. The only way I'll get a definitive answer to my specific case is to request a copy of the order. I'll do just that and go from there. Thank you!

The Court also should have a copy of the order in it's files.  You may have to appear in person at the clerk's office to get a copy (domestic relations matters are typically not publicly available).

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