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Old 01-01-2018, 10:42 AM
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Fuzzy Fuzzy is offline
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Let me lay out some facts so we see if anyone wants to comment directly about whether this interpretation is outrageous of justifiable rather than with generalities:
1. If the participant had terminated on the day of the divorce division, he would have been entitled to an Accrued Benefit of $2,726.29, payable monthly at his NRD (FOMF 65) as a 10C&C annuity.
2. The PA determined that a QDRO was qualified and notified the AP that she was entitled to 50% of his benefit, $1,363.15, but payable at her age 65 (6.5 years after his age 65) as a 10C&C annuity over her lifetime. At the time of qualification, she was offered a lump sum, using then current published tables, of $66,602.15.
3. Using the same Plan tables (the Plan apparently uses the same tables for participants and beneficiaries), the participant would have been eligible to elect a lump sum payment of $195,126.74 for his Accrued Benefit at the same time. 50% of this is $97,563.37.
Question: can anyone think of anything which would make the PAs determination of her award a valid interpretation of a divorce decree and QDRO which stated that she was entitled to 50% of his Accrued Benefit?
(I'm leaving out all of the other typical divorce questions, such as whether the award was equitable, whether there were any subsidized benefits subject to division, whether any survivor benefits which should have been considered, etc. Let's just assume that all of the typical restrictions were included (no increased benefits, nothing that the Plan wouldn't normally pay, etc.) and concentrate on whether this interpretation makes any sense to anyone.)
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