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Are there other matters that should be addressed in a plan’s QDRO procedures?
Yes. It is the view of the Department of Labor that a plan’s QDRO procedures should be designed to ensure that QDRO determinations are made in a timely, efficient, and cost-effective manner, consistent with the administrator’s fiduciary duties under ERISA. The Department believes that unnecessary administrative burdens and costs attendant to QDRO determinations and administration can be avoided with clear explanations of the plan’s determination process, including:
- An explanation of the information about the plan and benefits that is available to assist prospective alternate payees in preparing QDROs, such as summary plan descriptions, plan documents, individual benefit and account statements, and any model QDROs developed for use by the plan
- A description of any time limits set by the plan administrator for making determinations
- A description of the steps the administrator will take to protect and preserve retirement assets or benefits upon receipt of a domestic relations order (for example, a description of when and under what circumstances plan assets will be segregated or benefit payments will be delayed or suspended) and
- A description of the process provided under the plan for obtaining a review of the administrator’s determination as to whether an order is a QDRO.
- It is the view of the Department that the plan administrator’s adoption and use of clear QDRO procedures, coupled with the administrator’s provision of information about the plan and benefits upon request, will significantly reduce the difficulty and expense of obtaining and administering QDROs by minimizing confusion and uncertainty about the process.
Reference: [ERISA §§ 206(d)(3)(G), 206(d)(3)(H), 404(a); IRC §§ 414(p)(6), 414(p)(7)]