Generate Pension Report Create Account Log In How It Works Online Demo Sample Report Download Pension Form Print Pension Form QDRO Request Forms FREE Download Book Basics of Pensions In Depth Analysis Special Issues Actuarial Standards Sample Authorizations Pension FAQs QDRO FAQs Glossary Join Our Mailing List About Our Company About Our Analysts Contact Us Phone Consultations Our Fee Schedule Testimony Your Privacy Security Terms of Use Customer Support	Use of a Qualified Domestic Relations Order (QDRO) to accomplish a Deferred Distribution Introduction What is a Qualified Domestic Relations Order (QDRO)? Simply stated, a QDRO is a written set of instructions that explains to the administrators of a pension plan that a portion of one of its member's pension benefit is subject to division pursuant to a divorce. The QDRO provides the Plan Administrator with all of the factual information about the two parties, such as names, addresses, dates of birth, and social security numbers, as well as, any and all information required by the Plan in order to determine how to distribute the benefits. This may include a formula for the Plan to determine how much is to be paid to the spouse, when it should be paid, how it should be paid, what happens if the member dies, what happens if the spouse dies, and so on. The formal definition of a QDRO is as follows: The term Qualified Domestic Relations Order refers to a judgment, decree or order that creates or recognizes the existence of an alternate payee's right to receive all or a portion of a plan participant's benefits payable under an ERISA-qualified employee benefit plan. ERISA, REA and the Antialienation Provision The Employee Retirement Income Security Act of 1974, as amended (ERISA) was established to protect the interests of employees who participate in employer sponsored pension plans. In basic terms, this federal law enacted guidelines for employers to follow relative to the retirement plans being offered to their employees. Such guidelines include, but are not limited to, set funding standards and reporting and disclosure requirements. ERISA also contains language which prevents plan participants' benefits from being assigned to another party, such as in a bankruptcy or creditor situation. The Retirement Equity Act of 1984, as amended (REA) opened the door for a new interpretation of the antialienation provision contained in ERISA. A limited exception to this antialienation provision was created which provides for the existence of QDROs. This exception provides that benefits accrued by an employee may be paid to another person provided such person meets the definition of an alternate payee, and the order issuing such payment meets the criteria of a QDRO. A QDRO can be drafted for the following reasons: (i) equitable distribution of marital property; (ii) child support; or (iii) spousal support or alimony. The definition of a qualified alternate payee is a spouse, former spouse, child or other dependent of the plan participant. Criteria for a QDRO There are specific requirements that must be included in all proposed domestic relations orders before they can be considered a QDRO. The criteria in basic terms are as follows: The name and last known mailing address of the participant and alternate payee. The amount or percentage of the participant's benefits to be awarded to the alternate payee, or the manner in which the amount or percentage is to be determined by the plan. The number of payments or period to which the order applies. The name of each plan to which the order applies. The order must relate to the provisions of child support, spousal support/alimony or marital property rights for a spouse, former spouse, child or other dependent of the participant. The order must be made in accordance with a state domestic relations law (including a community property law). The QDRO may not require the plan to provide any type or form of benefit, or any option not otherwise provided under the terms of the plan. The QDRO may not require the plan to provide increased benefits determined on the basis of actuarial value. The QDRO may not require the payment of benefits to an alternate payee that are required to be paid to another alternate payee under another order previously determined to be a QDRO. Return to In Depth Analysis

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