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-   -   QDRO question - splitting of contributions (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=328244)

wheat66 11-20-2017 07:18 AM

QDRO question - splitting of contributions
 
A friend of mine is an Alt Payee under a QDRO under a DB plan. The Plan has mandatory Participant contributions, many of which were made during the married years.

The QDRO says the AP gets X% of the Participant's "accrued benefit" at the Participant's retirement. The QDRO is silent on the contributions /basis.

The Administrators are saying that the AP gets none of the contributions balance allocated to her.

I would think the contributions balance is an "accrued benefit" and so the AP should get her %.

Any comments would be appreciated.

DiscreteAndDiscreet 11-20-2017 10:42 AM

All of the information I've seen on this issue says that you are correct and on the contributory ERISA plans I've worked on QDROs are handled that way.

The refund of contributions with interest is part of the accrued benefit. The same framework the plan has for offering the participant the option of a larger benefit but no refund or a reduced benefit and refund has to be extended to the payee. One complicating factor is that some eligibility requirements for the participant may be construed as limiting the AP's payment options. My recollection is that, in general, the refund should not be payable until the participant terminates employment with the plan sponsor.


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