Alternate Payee

I am the AP on a Separate  Interest  QDRO. The( ex-spouse)participant is 54years young, employed at Chrysler. According to the plan, I can start receiving my portion of the funds on the participant’s earliest retirement age. I was told, by the representatives at Benefits Express,  I would receive a kit in the mail, with instructions so that I can commence payment. The next day I received a call saying I can not start receiving the funds until 01/15/2027, when the participant is 62 years young,  Chrysler’s normal retirement age. The QDRO has the following:

Quote

a.        Distribution to the Alternate Payee of the portion of the benefit awarded to him or to her pursuant to this Order may commence at the request of the Alternate Payee on or after the Participant's attainment of the earliest retirement age as that term is defined in Section 414(p)(4)(B) of the Code and shall commence no later than the Participant's benefit commencement date or the Participant's Normal Retirement Date, if earlier. If the Alternate Payee elects to receive his or her benefit prior to the Participant's Normal Retirement Date, the benefit shall be reduced for early commencement, as applicable.

I am confused as to why I can’t start receiving my  portion. Please help me understand what is going on. 

It depends on the terms of the plan.  From what you're saying it appears that your ex-spouse may not be eligible for early retirement and their earliest retirement date is actually their normal retirement date which is age 62.

17 minutes ago, Hojo said:

It depends on the terms of the plan.  From what you're saying it appears that your ex-spouse may not be eligible for early retirement and their earliest retirement date is actually their normal retirement date which is age 62.

Hojo's comment is the most obvious answer, but there might be others.  The best action is to direct the "WHY" question to the company's reps.  If it's not too personal, please let us know the answer.

I tried that approach, and I  am having the  hardest time with trying to get a answer. WillisTowerWatson, who Chrysler has contracted with to handle any QDRO issues , transfer me to Benefits Express, and the young lady in the call center, had a kit prepared for me to fill out soI could start receiving the funds, and the next day, I receive a call saying no kit will be prepared until the participant’s commencement  date,  according to them is in January 2027. I read the plan and the early retirement age according to the plan is 55.  I can’t afford an attorney, however I think I am going to need one.

 Are you sure that the earliest retirement age is not age 55 and 20, or so, years of service? The years of service requirement cannot be disregarded when looking for the age.  

There's also the possibility that you have to be actively employed at Age 55 to be eligible for early retirement.  You probably don't need an attorney but rather just need to keep asking questions as to why the participant is not eligible for early retirement.

Put your inquiry in writing, addressed to the Plan Administrator, who should be defined in the plan document or SPD.   Explain who you are and ask why you cannot start your benefits currently.  That starts a clock by which they are legally required to respond timely, presumably by someone with greater knowledge than those in the call center, or you can then seek help from the DOL or file legal action if necessary.

"on or after the Participant's attainment of the earliest retirement age"  

Everything is governed by the plan. Ask for a copy of the Summary Plan Document (SPD), it should clearly state the plans earliest retirement age. If that is age 62 or there is no Early retirement date, than you are not eligible to start your benefit before the participant's age 62.  As far as benefits express,  they are in no way subject matter experts. They may not even have access to a full plan document and handle several clients and plans at at once. They can be easily confused and give out incorrect infomation.

Yes, you can send an official inquiry "claim for benefits" and it will have to be reviewed by the company. However, they won't make an exception if the rules clearly state the early retirement date is 62, even if you were initially given the wrong information..

You can pull their 5500 and get a lot of info that way but you'll need to know the exact plan name.  Attached is the 5500 for the FCA US LLC Pension Plan and confirms participant just needs 10 years of service credit to be eligible to retire at 55 or later (with reduction for early commencement).  As a person who prepares QDROs for a living I can assure you that third party plan administrators make mistakes all the time and should be able to correct once explained.

5500.pdf