ESOP Model Order Needed

[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

 

[Peter Gulia]

Just curious: Does the plan your client might submit a DRO to furnish a suggested form?

Many plans’ administrators and their service providers furnish, at least to lawyers, a “model” form for an order likelier to get the plan’s QDRO approval.

While employee-benefits lawyers differ on whether a plan should furnish a model, some suggest it as a way to help protect a plan’s administration from difficulties and expenses that would result from responding to judges and lawyers less knowledgeable and less capable than you. Likewise, many service providers furnish a model to lower the operating expenses of a DRO-review service.

While you wouldn’t limit your work to following a plan’s model, sometimes reading the particular plan’s model reveals what kinds of divisions or payment commands likely would result in a denial that an order is a QDRO.

If you don’t find a model from the plan or by other means, consider Wolters Kluwer’s VitalLaw, Thomson/West’s Practical Law, or Lexis’ Practice Advisor.

This is not advice to anyone.

[QDROphile]

This is probably no help because (1) you already know to ask for a plan’s written QDRO procedures, and (2) most QDRO procedures are perfunctory. Well written QDRO procedures provide a guide to drafting. This is particularly true with respect to how the plan would like to see administration of vesting of an account subject to a QDRO. If the QDRO procedures do not specify, I think it is fair to ask the QDRO administrator for an explanation. Unfortunately, I do not know an effective way of laying shame on an administrator for deficient procedures and communication. You could inflict some pain by dragging the plan through claims procedures with the ultimate threat of a lawsuit, but that is cost prohibitive on your clients’ side as well.

Under claims procedures, the plan has to give an explanation about its negative decision on qualification (and the interpretation that goes with it).