1.What is a Qualified Domestic Relations Order (QDRO)?
A Qualified Domestic Relations Order (QDRO) is a certain type of court Order that awards a share of a retirement benefit to the employee's former spouse, referred to as an "alternate payee." Retirement benefits consist of property rights in the nature of deferred compensation, even if the benefits are not presently payable.
What is the purpose of a QDRO?
The QDRO requires the plan administrator of the retirement benefit to recognize the rights of the alternate payee in the plan and to make distribution of the alternate payee's share of the benefits directly to the alternate payee
What requirements, if any, must a QDRO meet?
A QDRO must be a court order or decree.
A QDRO must include the name of each specific plan to which it applies.
A QDRO must include the names and addresses of the employee and the alternate payee. A QDRO must allocate the retirement benefit by establishing and describing the amount of the benefit or the percentage of the benefit the alternate payee shall receive, or it has to specify how the division of the retirement pension will be determined.
A QDRO must specify the time frameduring which the payments shall be made.
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