Who determines whether an order is a QDRO?
The Plan Administrator of the retirement plan that provides the benefits affected by the proposed QDRO is the individual (or entity) initially responsible for determining whether a domestic relations order is a QDRO, per federal law. As plan fiduciaries, they bear the duty and responsibility with respect to determining whether a domestic relations order is a QDRO. As such, they establish guidelines and procedures to determine whether an order is a QDRO, and follow such rule when presented with a proposed QDRO. It is prudent to submit a proposed QDRO to the plan administrator for pre-approval prior to submitting the QDRO to the court.
Under Federal law, the administrator of the retirement plan that provides the benefits affected by an order is the individual (or entity) initially responsible for determining whether a domestic relations order is a QDRO. Plan administrators have specific responsibilities and duties with respect to determining whether a domestic relations order is a QDRO. Plan administrators, as plan fiduciaries, are required to discharge their duties prudently and solely in the interest of plan participants and beneficiaries. Among other things, plans must establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions pursuant to qualified orders. Administrators are required to follow the plan’s procedures for making QDRO determinations. Administrators also are required to furnish notice to participants and alternate payees of the receipt of a domestic relations order and to furnish a copy of the plan’s procedures for determining the qual
