Our QDRO Process

Step One – Engagement & Information Gathering                                                

Without accurate information from our clients about themselves, the plan, and their intended distribution, we simply cannot prepare an acceptable work product.   Our clients provide us with the information by completing our intake forms and providing the other documentation requested on the QDRO Preparation Checklist.

Step Two – Plan Investigation, Draft Preparation, and Preapproval             

Once we have received all items requested on the QDRO Preparation Checklist, we will begin preparing our draft. This is a multi-step process that involves identifying and reaching out to the plan administrator, reviewing prior QDROs we have prepared for the plan at issue or similar plans we have worked with in the past, and reviewing the published standards of the plan (if any).

 Upon completion of our draft QDRO, we will send a copy to the plan administrator for preapproval and ask that the plan administrator raise any issue(s) that would prevent the plan from complying with the QDRO’s terms, if it were entered as a Court Order. This preapproval review process can take anywhere from a few days to several months. However, it is our experience that dealing with potential issues before the QDRO is entered as a Court Order actually expedites the process in the majority of cases.  In fact, many local courts are require pre-approval review before they will send a QDRO to the Judge for signatures.

 Unfortunately, it is sometimes impossible or impractical for us to have the plan administrator provide this Preapproval review; some plan administrators simply will not review Orders in draft form; others are so backlogged that the predetermination review process would lead to unacceptable delay.

When we send our draft Order to the plan administrator, we will contemporaneously forward a copy to each party’s Primary Contact. This is the best time for the parties and their attorneys to review our work product. If the parties find any errors or have any questions, we encourage them to discuss our draft QDRO with their attorneys.

Step Three – Executing the QDRO, Filing with Court, and transmitting to the Plan

Once we have heard back from the plan administrator, we will make any necessary changes, prepare a copy of the QDRO for execution by the parties and send it to the parties’ Primary Contacts. 

When both parties have signed the QDRO, it is the responsibility of the parties or their attorneys to file with the appropriate Court and send a court-certified copy of the QDRO to us after it has been signed by a judge. Finally, we will transmit the returned court-certified copy of the QDRO to the plan administrator for qualification and implementation. Some plan administrators will reply within days; others will take months to reply.

Step Four – Qualification and/or Revisions

 The final step in our process should be receipt of a “qualification letter” by the plan administrator. Receipt of this letter means that the Order is deemed to be a Qualified Domestic Relations Order under federal law and that the plan administrator will comply with its terms. 

 In some cases, the QDRO may be deemed “not qualified” by the plan administrator, and we will need to prepare an amended QDRO and resubmit to the court and the plan administrator. However, this is a rare occasion, because we strive wherever feasible to have the plan administrator review our QDRO in draft form prior to presentation as a certified Court Order (step two).

 Upon notice that the Order has been qualified (or other confirmation that the Order’s terms are being effectuated), our involvement in the case is concluded. At this point, the alternate payee has a recognized right under federal law to the plan assets assigned in the QDRO. The plan administrator will usually reach out to the alternate payee directly to arrange for payment of benefits or provide their contact information in the notice of qualification.

Note: This process is designed for the majority of the Orders we are asked to draft, which are for ERISA qualified plans. Our process may differ slightly depending on the type of plan and the plan’s QDRO administrator. This is especially true for IRAs, executive compensation plans, and plans for federal, state, and municipal employees.