Is it possible to receive a lump sum cash payment when drafting a QDRO against a defined benefit plan?
Typically, no. Most defined benefit plans will only pay both participants and alternate payees benefits on a monthly basis. However, the provisions of the plan itself should be examined before ruling out this possibility. Return to the Top 14. Can I get my benefits from a defined benefit plan right away? Under a defined benefit plan, the benefit awarded to the alternate payee may begin, at his/her election, when the participant reaches his/her “earliest retirement age” under the Plan. This is the earliest point in time benefits may begin being paid to the alternate payee. In some cases, the QDRO could be drafted to only allow commencement of benefits to the alternate payee to begin when the participant actually retires. 15. Is it always necessary to elect post-retirement survivor benefits for an Alternate Payee? No. Most plans will allow the use of a separate interest approach to dividing the benefits. Using this type of QDRO, the Alternate Payee’s share of the benefits are actuarially
