not surviving spouse?

[robin]

I was divorced a year ago with a Qdro separate interest with annuity at fifty percent, My husband passed away at 65 before retiring. I am listed as surviving spouse but Plan Adm tell me that because i am already receiving annuity i am no longer considered surviving spouse. I never signed any consent form to give up my surviving spouse rights.

[david rigby]

It's possible the portion that could be payable to a surviving spouse is the same (or close) to the amount you are already receiving.  You need to carefully focus on the surviving sp. language in the QDRO.

[QDROphile]

This response is based on some inferences and is not advice. I am uncertain what is meant by your award of “an annuity at fifty percent.” You report that you were awarded a portion of your former spouse’s pension as a separate interest. With respect to the remaining portion of the participant’s interest that you were not awarded, how can you be a surviving spouse? The reason you were awarded your separate interest is because you got a divorce. You are no longer a spouse of the participant, and therefore cannot be a surviving spouse with respect to what is left of the participant’s interest. The plan knows you are no longer a spouse because of the QDRO. It does not matter that the designation of you as a spouse was not updated. The plan has sufficient records to determine your status — not a spouse. The plan is not going to pay a surviving spouse benefit when there is no surviving spouse. The plan will enjoy an actuarial benefit from the early death of the unmarried participant. If the plan has an option for a survivor annuity for a non-spouse, and you were designated as recipient of that survivor benefit, you might have something to go on if the designation of survivor were not updated after the divorce. I am guessing that most pension plans provide survivor benefits only for spouses, and this is one.

[Gina Alsdorf]

Surviving "spouse" I am betting the definition section of the plan covers this clearly.  

[robin]

12 hours ago, QDROphile said:

This response is based on some inferences and is not advice. I am uncertain what is meant by your award of “an annuity at fifty percent.” You report that you were awarded a portion of your former spouse’s pension as a separate interest. With respect to the remaining portion of the participant’s interest that you were not awarded, how can you be a surviving spouse? The reason you were awarded your separate interest is because you got a divorce. You are no longer a spouse of the participant, and therefore cannot be a surviving spouse with respect to what is left of the participant’s interest. The plan knows you are no longer a spouse because of the QDRO. It does not matter that the designation of you as a spouse was not updated. The plan has sufficient records to determine your status — not a spouse. The plan is not going to pay a surviving spouse benefit when there is no surviving spouse. The plan will enjoy an actuarial benefit from the early death of the unmarried participant. If the plan has an option for a survivor annuity for a non-spouse, and you were designated as recipient of that survivor benefit, you might have something to go on if the designation of survivor were not updated after the divorce. I am guessing that most pension plans provide survivor benefits only for spouses, and this is one.

 

[robin]

My husband passed in February, I messaged the administrators on the 15th of March and inquired if I was deemed surviving spouse and if so what should I do and if not, what should my children do..they did not answer my question of surviving spouse but said my daughter had already applied for benefits and gave a phone number for them to call. 

My daughter received a letter of denial for the claim last week stating the eligibility requirements for a benefit had not been met because there is a Qdro where an ex-spouse is receiving benefits. Therefore no additional benefits are payable. Section 6.06 of the plan limits the Funs liability, only one survivor benefit and/or death benefit is payable upon the death of a participant. They are in process of sending me a letter explaining everything. What does all of this mean?

[fmsinc]

If you are receiving a separate interest annuity there is no survivor annuity benefit.  You are the owner of your separate interest, just as if you had been working for the company and retired.  Your annuity will continue for your entire lifetime.  And your separate interest annuity is not dependent on his retirement. The fact that your annuity will continue for your lifetime is the actuarial equivalent of what you would have received if your were awarded a shared interest.  You don't get both See below re: shared interest.   

You can choose to start your separate annuity if he is over age 50 and is eligible to retire.  It's actually a little more complicated than that - IRC §414(p)(4)(B), known as the "age 50 rule", provides that the “earliest retirement date” is: "the earlier of two dates: (i) the date on which the Participant is entitled to begin receiving benefits per the terms of the Plan; or, (ii) the later of: 1) the date the Participant reaches age 50, or: 2) the earliest date on which the Participant could begin receiving payments under the Plan if the Participant separated from service."  

If you are already in pay status you are receiving your separate interest and that's exactly what you are entitled to receive. 

The sort of survivor annuity you are talking about is associated with a shared interest annuity whereby you receive a share of HIS annuity if, as and when he retires, and when he dies you receive a survivor annuity of a certain percentage.  I don't know where you are listed as a surviving spouse, but I don't think that had anything to do with your entitlement for a second survivor benefit.

BUT all separate interest annuities are not the same.  Some provide that if he dies before he meets the age 50 rule requirement, that you will indeed receive a survivor annuity as if you had been awarded a shared interest.  But as I said, if you are in pay status you are likely getting everything you are entitle do. 

If you want to send me a copy of the QDRO I will be happy to review it for you - no charge. 

Email it to me at marylandmediator@gmail.com

David