In a QDRO, what do the terms “participant” and “alternate payee” mean?
A. These are terms used in QDROs and other retirement orders. “Participant” refers to the spouse who is an employee or former employee of the plan sponsor, and “alternate payee” refers to a nonemployee spouse. Under ERISA, an alternate payee is “any spouse, former spouse, child, or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under the plan with respect to such participant.” An alternate payee, under a QDRO, is treated as a plan beneficiary.
