QDRO & No survivorship for second spouse

[LisaT]

My husband of 20 years just started receiving a pension he earned prior to our marriage which was subject to a QDRO.  We had to submit his paperwork at the end of the year for the pension payout and he chose a payout based on 100% survivorship. He just received a letter that outlined that his ex wife will receive 50% of the pension, per the QDRO as expected, and also that if my husband were to die, she’d receive the same amount - also expected as the QDRO did specify she would have death benefits. However the letter also specified that if my husband predeceases me I would only get about 1/6 of that amount .  I am confused. If my husband’s pension, in which he was 100% vested  - for simplicity’s sake - is 1000/month with 100% survivorship, if he dies is it appropriate/expected that his half of the 1000 virtually disappears?  With the ex wife getting her expected $500 still but the current spouse only getting $100?  This seems to imply that my husbands employer gets a windfall by being allowed to keep 400/month in which he was entirely vested with 100% survivorship just because he got divorced. How can the employer be allowed to somehow not pay the full survivor benefit given that he was vested?  This seems like it would be illegal. There is no argument at all with what the ex wife is getting , just confusion over why the current spouse would lose the remaining piece of the pension. Is this normal?  Should I be engaging a lawyer?

[MoJo]

43 minutes ago, LisaT said:

 Should I be engaging a lawyer?

The answer to that question is "yes, but" as it is your husband who should be seeking counsel.  Let me see if I can clarify (and I am NOT giving advice here).  It appears, if you are correct that he selected a 100% survivor benefit (in our parlance, a 100% joint and survivor benefit) then he (or his "survivor") would expect that upon his death, the "survivor" would continue to get the same amount of benefit as he was receiving before his death.  In your example, $1000.  If it truly is a 100% J&S benefit, that would be a good assumption, but it is an open question.  VERIFY that (as there may have been options available, such as a 50% J&S, 66-2/3% J&S and a 75% J&S).  To the extent the ex-spouse actually gets 50% of the pension (determined at the time the pension starts), one would expect her "$500' to continue - and not change as a result of his death (ASSUMING the QDRO says what you say it does).  The the question is "what's left" for you - and that depends and the underlying facts behind the assumptions I laid out.  The facts in these situations are extremely important - which is why your husband should seek counsel to assist in understanding and/or enforcing his/your rights as defined by the QDRO and the pension plan.

[jpod]

But someone told her she would get 1/6th, and that to me is a mystery.  Now that he is in pay status and everything is locked in I agree that the participant should be able to get from the plan a statement showing what is the split during his life and what happens after his death and that should be Step 1.  If that statement doesn't make sense and husband and wife can't get a satisfactory explanation, Step 2 may be to seek legal counsel. 

[MoJo]

17 minutes ago, jpod said:

But someone told her she would get 1/6th, and that to me is a mystery.  Now that he is in pay status and everything is locked in I agree that the participant should be able to get from the plan a statement showing what is the split during his life and what happens after his death and that should be Step 1.  If that statement doesn't make sense and husband and wife can't get a satisfactory explanation, Step 2 may be to seek legal counsel. 

Agreed - which leads me to believe it wasn't a 100% J&S....

[fmsinc]

It is not possible to answer your question unless I know which of the 35,000 or so pension plans you are talking about, and have the opportunity to read the QDRO and the letter that came from the Plan administrator.  It is possible that notwithstanding the language of the QDRO the Plan only offers a 50% joint and survivor benefit.  If you want to communicate with me, my email of marylandmediator@gmail.com.  Include copies of whatever documentation you have.  

[david rigby]

4 hours ago, fmsinc said:

… Include copies of whatever documentation you have.  

To the original poster: Please do not send any personal information to this person - or anyone else - until you have vetted the person/company.  Anything you send should have a password or some other security.

[JamesK]

I would just like to emphasize what the others above have stated:  obtain a statement with the calculation of all the relevant amounts including your husband's pension, his first wife's share, and your share. 

Based on what you've said, it doesn't add up, but without seeing the numbers, it is too abstract for anyone here to be helpful.  

[fmsinc]

I am pleased that David is so protective.  My website is a www.familymediator.com.  I have been a member of the Maryland Bar for 52 years and have prepared QDROs since 1988.  Check me out.