Model Order for ESOP

[fmsinc]

Is anyone willing to send me a copy of a model ESOP QDRO? 

In Maryland where I practice the law with respect to vested and non-vested 401(a) benefits seem to be an out of step with the manner in which ESOP Administrators are willing the alocate the benefits to the Alternate Payee. 

My email is marylandmediator@gmail.com

Thanks.  

David

[JM]

Hi David, I will email you separately on this...JM

[ESOP Guy]

13 hours ago, JM said:

Hi David, I will email you separately on this...JM

I would love to see a copy of this out of just plain curiosity.  I have worked on ESOPs for about 30 years and I don't think I have ever seen a QDRO that splits the nonvested portion of the balance ever. If willing can I get a copy just to read?  

[JM]

Hello ESOP Guy!  I have several plan provided ESOP models which I shared with David (happy to send your way if you would like?), but the intention was not to divide the unvested portion at this time, just ideas on how to deal with that issue but also the fact ESOPs typically have one annual valuation (no interim/daily valuations), which complicates QDRO matters!

[ESOP Guy]

2 hours ago, JM said:

Hello ESOP Guy!  I have several plan provided ESOP models which I shared with David (happy to send your way if you would like?), but the intention was not to divide the unvested portion at this time, just ideas on how to deal with that issue but also the fact ESOPs typically have one annual valuation (no interim/daily valuations), which complicates QDRO matters!

I don't private message people very often so I could have done it wrong.  But I sent you a message with my email address.   If you would email what you are willing to share it would be appreciated.  

 

And yes the one day per year valuation does change things.  I often ask clients to see if the people wanting the QDRO will send a draft of it to the plan and me to review.  The topic of the date picked is easily the most common area of comments back from me.  In my mind it is easy however from the plan's perspective.  To use a simple example a 12/31 PYE plan if the split is based on a value on any day other than 12/31 the value is in effect the prior 12/31.  When I point that out the date often times changes to a 12/31 but which one was most likely a point of negotiation.