Are alternate payees under a QDRO treated a “Beneficiaries” under ERISA?
A-44: The answer is yes. It is important to remember when drafting a QDRO that an alternate payee is essentially treated under ERISA with all of the rights and privileges of a plan beneficiary. As stated in ERISA ยง206(d)(3)(j), “A person who is an alternate payee under a qualified domestic relations order shall be considered for purposes of any provision of this Act a beneficiary under the plan.” Therefore, a plan administrator should remember to include alternate payee’s with respect to any ERISA compliance issue. For example, when complying with ERISA’s reporting and disclosure requirements, a plan administrator should be sure to treat alternate payees in the same manner as plan participants and beneficiaries. An exception does not exist, however, with respect to the payment of PBGC premiums, as just discussed.
Related Questions
- Can a QDRO under a defined benefit pension plan provide the alternate payee with "interest and investment earnings" on his/her assigned share of the benefits?
- Can the QDRO simply include language that provides the alternate payee with a specified percentage of benefits "accumulated during the marriage?"
- Can a QDRO provide the alternate payee with a portion of the participants "future" benefits under the Plan ?
