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What Are the Disadvantages to the Plan Participant of Using a QDRO in Dividing a Pension?

April 26, 2017disadvantages dividing participant Pension Plan QDRO

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What Are the Disadvantages to the Plan Participant of Using a QDRO in Dividing a Pension?

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Plan participants may reject using a QDRO for the following reasons: 1. They can possibly forfeit survivorship rights for a subsequent spouse 2. They can lose a portion of their benefits if their ex-spouse dies first 3. It will allow nonparticipants to share in the growth of the pension.