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According to the Employee Retirement Income Security Act of 1974 (ERISA) a Qualified Domestic Relations Order (QDRO) is a judgment, decree or order that creates or recognizes the existence of an alternate payee's right to receive all or a portion of a plan participant's benefits under an ERISA-qualified employee benefit plan. A Domestic Relations Order (DRO) achieves the same purpose as a QDRO, but applies only to non-qualified plans, such as state & local governments and public school teachers retirement systems.
The most common reason for drafting a QDRO or DRO is to effectuate the division of a pension pursuant to an equitable distribution agreement in a divorce. However, QDROs can be used for the provisions of child support or other marital property rights, such as alimony, in which a plan participant may be delinquent.
A QDRO or DRO must contain certain general information about the two parties, such as their addresses, social security numbers, dates of birth, as well as, specific information that would be set forth in the guidelines of the plan to which the order applies. A QDRO or DRO cannot instruct a pension plan to disburse benefits to an alternate payee or give an alternate payee any rights or privileges that are not set forth in their guidelines.
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 Over 100 Pages 3-Ring Binder | Pension Issues and Divorce Availability: In Stock (immediate) Shipping: 24 Hour - Confidential Packaging When couples get divorced they must decide how to divide their property. Retirement benefits (pensions) often form a substantial part of the parties' total marital estate and many times are the largest single marital asset afforded the couple. Similar to other assets, pensions are typically divisible in cases of divorce to the extent that they are acquired during the period of marriage. Click Here to Order |
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