What is a qualified domestic relations order (QDRO) and what requirements must it satisfy?
A QDRO is a court judgment, decree, or order establishing the marital property rights of a spouse, former spouse, child, or dependent of a pension plan participant. Specifically, a QDRO: • Provides for child support, alimony payments, or marital property rights for a spouse, former spouse, child, or other dependent of a qualified plan participant and is made pursuant to a state domestic relations law, and • Creates or recognizes the existence of the right of the individual named in item 1 (i.e., the alternate payee) to receive all or a portion of a participant’s benefits under a qualified retirement plan A QDRO must satisfy certain requirements. It must clearly specify: • The name and last known mailing address of the participant and each alternate payee covered by the order • The amount or percentage of the participant’s benefits that the plan must pay to each alternate payee (or the manner in which an amount or percentage is to be determined) • The number of payments or periods to wh
