How does the death of either party impact benefits payable under a QDRO?
This answer depends on a variety of factors such as the type of plan involved, whether the participant is retired, and the wording of the QDRO. For instance, in the case of a defined benefit plan, if the participant is not retired the QDRO can provide that the alternate payee will receive benefits over his or her lifetime. In this case, the participant’s death will not impact the alternate payee’s benefits once payments to the alternate payee begin. In the case of a 401(k), the participant’s death will have no impact on benefits payable to the alternate payee assuming proper wording in the QDRO. QDRO’s must also address what happens when the alternate payee dies. An alternate payee’s ability to transfer his or her benefits to a third party at death similarly depends on the type of plan involved and the wording of the QDRO.
