Can a QDRO provide the alternate payee with a portion of the participants “future” benefits under the Plan ?
A-33: No. The QDRO must include an effective date of assignment that is on or before the date that such QDRO is submitted to the Plan Administrator. This requirement is necessary due to loan and withdrawal provisions. Therefore a QDRO submitted on June 1, 1996, cannot include language that provides the alternate payee with, say 50%, of the participant’s total account balance under the Plan as of December 31 1998. This would deprive the participant of contractual Plan rights and entitlements and be in strict contravention of ERISA.
Related Questions
- How will the alternate payees share of the benefits be "allocate" among the participants various accounts and/or subaccounts under a defined contribution plan?
- Can a QDRO provide that all of the participants accrued benefits are to be paid to the alternate payee?
- What is the earliest date on which the alternate payee can begin to receive benefits under a QDRO?
