Award of future benefits?

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ntang
Posts: 31
Joined: Fri Mar 02, 2018 12:01 am

Award of future benefits?

Post by ntang » Fri Mar 02, 2018 12:38 am

Can a QDRO provide the alternate payee with a portion of the participant's "future" benefits under the Plan ?

lduffy
Posts: 29
Joined: Thu Mar 01, 2018 10:15 pm

Re: Award of future benefits?

Post by lduffy » Fri Mar 02, 2018 1:47 am

No. The QDRO must include an effective date of assignment that is on or before the date that such QDRO is submitted to the Plan Administrator. This requirement is necessary due to loan and withdrawal provisions. Therefore a QDRO submitted on June 1, 1996, cannot include language that provides the alternate payee with, say 50%, of the participant's total account balance under the Plan as of December 31, 1998. This would deprive the participant of contractual Plan rights and entitlements and be in strict contravention of ERISA.

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