How will the alternate payees share of the benefits be “allocate” among the participants various accounts and/or subaccounts under a defined contribution plan?
A-32: Not only should your QDRO include specific details regarding the amount of the alternate payee’s benefits, it should also include instructions regarding the allocation of benefits form the participant’s accounts. Alternatively, you may include an instruction in the QDRO that requires the Plan Administrator to carve out the alternate payee’s share of the benefits on a “pro-rata” basis among all of the participant’s accounts.
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?
- How are interest and investment earnings/losses calculated on the alternate payees share of the benefits?
- Can a QDRO provide the alternate payee with a portion of the participants "future" benefits under the Plan ?
