Divorce on Annuity Starting Date

Our client has an interesting situation:  A participant whose divorce became final ON her annuity starting date.  The plan administrator was aware of the pending divorce, but could not suspend payments (as it normally would under QDRO procedures) because the participant had also reached her required beginning date under the RMD rules.  The administrator did not receive the final decree until a few months after the ASD/RBD, and brought the participant into pay status with a QJSA because they believed her to still be married on her ASD.  

Under state law, the participant was not married on her annuity starting date.  My thought is that the participant should be permitted to retroactively elect a life annuity.  However, I'm curious if anyone has ever seen a similar situation and how you handled it?

Does any provision of the State court’s domestic-relations order make the former spouse a deemed spouse for the plan’s survivor-annuity provisions?

Absent a QDRO, depending on plan terms it could be that the participant was required to commence a single life annuity rather than a J&S. If person was put into pay status automatically at RBD, then that may likely be the case. If they made a valid election of a J&S, and plan allows for non-spouse beneficiary, then that may be irrevocably set.

It seems like you know the facts, apply the terms of the plan based on those facts, including any adjustments and corrections to what was initially done.

If there is a subsequent, post commencement QDRO, then it could assign a portion of the retiree's life annuity but that would cease upon the retiree's death, you could not after the fact implement a forced J&S upon the plan.

Thank you both.  The terms of the judgment award the entire benefit to the participant, and accordingly there is no QDRO.  CuseFan, as you suspect, this is a situation where the participant was forced into pay status with a QJSA automatically at RBD.  Based upon the believe that she was married at the time.

It seem to me that the participant should be retroactively switched to a single life annuity, with the resulting underpayments corrected.  To the extent that the plan offers other forms of benefit, she should be given an opportunity to make an elect such a form instead of the SLA.

Again, thanks to both of you for your insight.

Brian