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Formula for QDRO Division of Pension Benefit


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Can someone explain and simplify what this means for me in a QDRO? Can someone map out what the mathematic equations would look like:

The Marital Share: This Order assigns to the Alternate Payee as a shared interest in an amount equal to fifty percent (50%) of the martial share of the Participant’s Accrued Benefit under the Plan.  The martial share to the former spouse shall be computed by multiplying the monthly annuity of the Defendant by 50% and by multiplying the product thus derived by a fraction.  The fraction shall have a numerator and shall include all months of the parties’ marriage from August 23, 1982, through November 11, 2009, and the denominator shall be the total number of months that the Participant accrued benefits under the Plan in order to first become eligible for Retirement Benefits under the Plan.

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  • Lois Baker changed the title to Formula for QDRO Division of Pension Benefit

The last phrase is a little confusing, but lets say your accrued benefit at the time of retirement was $!000.  Let say you were hired on 1/1/1980 and your last day worked was 12/31/2019.  

Number of months from 8/23/82 to 11/11/2009 - let's call this 328 (could be 326 or 327 depending on interpretation)

Number of months from 1/1/80 to 12/31/2019 - 480

The AP's portion would be 1000 * .50 * 328 / 480 = 341.67

   

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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