Who can be an Alternate Payee?
A domestic relations order can be a QDRO only if it creates or recognizes the existence of an alternate payee’s right to receive, or assigns to an alternate payee the right to receive, all or a part of a participant’s benefits. For purposes of the QDRO provisions, an alternate payee cannot be anyone other than a spouse, former spouse, child, or other dependent of a participant.
• What information must be included in a domestic relations order in order for it to be “qualified”? • Who determines whether a domestic relations order is a QDRO? In general, ERISA and the Code do not permit a participant to assign or alienate the participant’s interest in a retirement plan to another person. These “anti-assignment and alienation” rules are intended to ensure that a participant’s retirement benefits are actually available to provide financial support during the participant’s retirement years. A limited exception to the anti-assignment and alienation rules is provided for assignments of retirement benefits through qualified domestic relations orders (QDROs). Under the QDRO exception, a domestic relations order may assign some or all of a participant’s retirement benefits to a spouse, former spouse, child, or other dependent to satisfy family support or marital property obligations if and only if the order is a “qualified domestic relations order.” ERISA requires that e
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 ?
