Do QDROs apply to plans sponsored by the government and churches?
A-38: No. The Omnibus Budget Reconciliation Act of 1989 (OBRA 1989) subsection 7841 (a)(2) added a new subsection 11 to ยง414(p) of the IRC regarding the application of QDROs to governmental and church plans. It states in pertinent part: [A] distribution or payment from a governmental plan (as defined in subsection (d)) or a church plan (as described in subsection (e)) shall be treated as made pursuant to a qualified domestic relations order if it is made pursuant to a domestic relations order which meets the requirements of clause(i) of paragraph (1)(A). In other words, a domestic relations order that creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a governmental or church plan shall be treated as made pursuant to a QDRO. For these purposes, a governmental plan means a plan established and maintained for its employees by the governmen
