Frequently Asked Questions
This information is intended for informational purposes and to provide background on the standard QDRO review and determination process. Please note that plan procedures may vary. In all cases, the parties are reminded that a plan’s QDRO Procedures establish the process for determinations.
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) contains the information required by ERISA Section 206(d)(3)(C), (3) does not violate the restrictions in ERISA Section 206(d)(3)(D), and (4) satisfies the other 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.
What is a Domestic Relations Order (DRO)?
Generally, a DRO is a court order, or an order issued by another authorized state agency, that (1) is made pursuant to a state domestic relations law, and (2) provides for payment of child support, alimony, or marital property rights to an Alternate Payee.
Who is QDRO Consultants?
QDRO Consultants, was hired by the Plan Administrator (or Plan Recordkeeper) to review DROs related to the Plan, to determine whether DROs are qualified pursuant to the Plan’s QDRO Procedures, and to send relevant notices to the interested parties.
Who is a Participant?
An individual who has a benefit in the Plan.
Who is an Alternate Payee?
An Alternate Payee is a Participant’s spouse, former spouse, child, or other dependent who is assigned Plan benefits in a DRO.
Can I prepare a DRO myself or is an attorney or QDRO drafting service required?
Yes, you may use the template provided to prepare your own draft DRO. However, please keep in mind that the draft DRO must be signed by a Judge and filed with the appropriate state court. It is the drafting party’s responsibility to format the draft DRO to satisfy the court’s requirements (similar to formatting on the divorce decree or other court order). Please contact the Clerk of Courts to confirm if any modifications may need to be made in order to comply with the court’s requirements, such as:
- Modify the court captions and/or signature line for the Judge
- Add signature lines for the Participant, and Alternate Payee and/or legal counsel
How do I submit a DRO for review?
You can securely submit a DRO to QDRO Consultants here (qdros.com/submit)
How long does this process take?
Be sure to check out the process flowchart to allow you to review the process from start to finish or download a checklist to help guide you through the process.
Can a draft DRO be submitted to QDRO Consultants for review before having it executed by the court?
Yes. The Plan Administrator will only enforce a court executed DRO that complies with the Plan’s QDRO Procedures and applicable federal law. However, you may choose to submit a draft DRO to QDRO Consultants for review before having it executed by the court.
I submitted my DRO to QDRO Consultants, what’s next?
Typically, the specialist handling your case will review the DRO and send a response within 30 days. Depending on the information you included, you will receive it either by mail or email. The letter will provide the status of the DRO and next steps.
Will I receive a fair split of the Participant’s benefits?
QDRO Consultants cannot answer questions regarding whether a QDRO has fairly or equitably divided the Participant’s benefits among the Participant and Alternate Payee. Instead, QDRO Consultants’ role is limited to the technical requirements of DRO review and QDRO determination. It is the responsibility of the court or the parties and/or their attorneys to determine what is fair and equitable, and to determine the QDRO’s substantive provisions, including the benefit assignment.
Can QDRO Consultants provide calculations or tell me how much the Alternate Payee will receive?
No. QDRO Consultants reviews DROs related to the Plan, to determine whether DROs are qualified pursuant to applicable Federal law and the Plan’s QDRO Procedures and send relevant notices to the interested parties. Once a DRO is qualified, QDRO Consultants provides detailed instructions to the Plan’s recordkeeper (or actuary) who will calculate and determine the assigned benefit based on the terms of the QDRO.
Can QDRO Consultants provide account balances, statements, or other Participant specific benefit information?
In most cases, no. QDRO Consultants reviews DROs related to the Plan, to determine whether DROs are qualified pursuant to applicable Federal law and the Plan’s QDRO Procedures and send relevant notices to the interested parties. Parties would need to contact the Plan’s recordkeeper or benefits department for this type of information.
Must a domestic relations order be issued by a state court?
A domestic relations order may be issued by any state agency or instrumentality with the authority to issue judgments, decrees, or orders, or to approve property settlement agreements, pursuant to state domestic relations law (including community property law).
Reference: ERISA § 206(d)(3)(B)(ii); IRC § 414(p)(1)(B); Advisory Opinion 2001-06A.
What information must a domestic relations order contain to qualify as a QDRO under ERISA?
QDROs must contain the following information:
- The name and last known mailing address of the participant and each alternate payee
- The name of each plan to which the order applies
- The dollar amount or percentage (or the method of determining the amount or percentage) of the benefit to be paid to the alternate payee
- The number of payments or time period to which the order applies
Reference: ERISA § 206(d)(3)(C)(i)-(iv); IRC § 414(p)(2)(A)-(D)
Are there other requirements that a domestic relations order must meet to be a QDRO?
There are certain provisions that a QDRO must not contain:
- The order must not require a plan to provide an alternate payee or participant with any type or form of benefit, or any option, not otherwise provided under the plan
- The order must not require a plan to provide for increased benefits (determined on the basis of actuarial value)
- The order must not require a plan to pay benefits to an alternate payee that are required to be paid to another alternate payee under another order previously determined to be a QDRO
- The order must not require a plan to pay benefits to an alternate payee in the form of a qualified joint and survivor annuity for the lives of the alternate payee and his or her subsequent spouse
Reference: ERISA §§ 206(d)(3)(D)(i)-(iii), 206(d)(3)(E)(i)(III); IRC §§ 414(p)(3)(A)-(C), 414(p)(4)(A)(iii)
May a QDRO be part of the divorce decree or property settlement?
There is nothing in ERISA or the Code that requires that a QDRO (that is, the provisions that create or recognize an alternate payee's interest in a participant's retirement benefits) be issued as a separate judgment, decree, or order. Accordingly, a QDRO may be included as part of a divorce decree or court-approved property settlement, or issued as a separate order, without affecting its qualified status. The order must satisfy the requirements described above to be a QDRO.
Reference: ERISA § 206(d)(3)(B); IRC § 414(p)(1)
For more information on QDROs requirements, the US Department of Labor developed a comprehensive, accessible resource "The Division of Retirement Benefits Through Qualified Domestic Relations Orders."