About QDROs

What is a Qualified Domestic Relations Order (QDRO)? A QDRO is a DRO that (1) requires the Plan Administrator to assign or transfer some or all of a Participant’s Plan benefits to an “Alternate Payee,” (2) meets the requirements of applicable federal law, and (3) satisfies the requirements contained in these QDRO Procedures. Also, a DRO is not a QDRO until QDRO Consultants has determined, consistent with the Plan Administrator’s instructions, that the DRO is qualified.

You can review the legal definition for QDRO in Section 206(d)(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and in Section 414(p) of the Internal Revenue Code of 1986, as amended.

What is a DRO? Generally, a DRO is a court order that (1) is made pursuant to a state domestic relations law, and (2) provides for payment of child support, alimony, or marital property rights.

Who is a Participant? An individual who has accrued a benefit in a retirement plan based on his or her employment with the Plan’s sponsor.

Who is an Alternate Payee? An Alternate Payee can be the Participant’s spouse, former spouse, child, or other dependent.