There are many areas where errors can be made in the preparation of a QDRO if you are not utilizing the services of a qualified firm to prepare the order. Examples of these are:
- Incorrect naming of plan.
- Not understanding if a plan is defined benefit or defined contribution in nature, as significantly different provisions are required.
- Providing for a separate interest for the alternate payee in the case where the participant is already in pay status as a retiree under a defined benefit plan.
- Awards that may exceed the balance in the participant’s account.
- Providing for an apportionment to the alternate payee that does not consider the vesting of the participant’s account, i.e. plans will normally not accept a QDRO that attempts to apportion non-vested account balances.
- Lack of consideration of a loan where one exists under the participant’s account.
- Providing for a QDRO provision that violates plan terms, e.g. requiring an immediate distribution to the alternate payee where the plan only allows for payment at the participant’s earliest retirement date.
- Specifying a form of payment that is not provided for in the plan, e.g. requiring a lump sum distribution in a pension plan.
These are merely examples of the many issues that can arise in the preparation of a QDRO that can result in its denial of qualification. The use of Gary A. Nagler, P.L.L.C., a law firm whose services are concentrated in the ERISA/employee benefits area, can avoid these issues.
Trust Gary A. Nagler, PLLC, an experienced Houston, Texas QDRO lawyer. Call (713) 666-7742 or CLICK HERE to get started now!