QDRO Tips

By: Mark K. Altschuler and Marvin Snyder

The hot new topic in QDROs is early retirement enhancements. There have been state Supreme Court decisions recently on this issue. In Pennsylvania, the Gordon decision, allows, but does not mandate, that early retirement enhancements be included in a QDRO. The Meyer case, pending in the Pennsylvania Supreme Court, should decide the issue. PAC actuaries have testified twice in the Gordon case, and PAC was cited in the Common Pleas decision in Meyer.

Regarding ERISA QDROs, PAC is highly familiar with the issue of separate interest verses shared interest and how this relates to survivor benefits, having testified on this issue in the Palladino case. PAC was cited in the Superior Court decision in this case.

What about government, non-ERISA plans? PAC is well versed in Civil Service Retirement System COAPs, including the fine points of cost of living adjustment, disability, reversion of benefits, the Former Spouse Survivor Annuity, and the Cornbleth offset.

PSERS and SERS ADROs (qdro type orders) create another area of challenge. This complex system has many variables and "buttons" that can be pushed to create the precise draft you need. PAC has given seminars at various county bar associations and private law firms on this issue alone. For example, a PSERS ADRO can create a lump sum award, an annuity, or a combination of both. How should the withdrawal of contributions under [Option 4] be handled? What happens if the Member dies? PAC is familiar with the [Special Option 4] survivor annuity and how to tailor this to the case at hand, including the issue of who bears the cost of this survivor annuity. If the award is a lump sum, the [Option 1] death benefit may be more appropriate than the survivor annuity. PAC is familiar with all these issues and how to tailor the draft for the particular case. [mention options specifically? Serine's article vs. Marv's advice] Don't mention options by name, since people will not remember Serine's article. Tie in with moder, show what is missing.

Model orders available for most private and government plans. Used with caution. A consultants input can adapt the model order for particular case and contingencies. see Marv's section on model QDROs in Rob's book.

Cost is always important to the client. PAC's very affordable draft QDRO fee of $400 covers all revisions generated by the plan for a period of 3 years after the initial draft. Why pay more for a firm that charges for QDRO revisions. Why pay thousands of dollars for a QDRO drafted by a firm charging by the hour? PAC is able to produce a QDRO draft tailored to the particular case and plan for a reasonable fee due to our experience. For your QDRO drafting needs, contact Pension Analysis Consultants.

NJ: Hayden/White, Reinbold, and Risoldi

NJPERS, PFRS, TPAF

NY: Majuaskas, Olivo, (new cases in QDRO 1999 supplement), NYCTRS (create std)

NYSLERS (have form QDRO); NY police and fire (create std) appears to be no DC law in NY, haven't noticed in Equitable Distr. and didn't get in search. Need to get the new cases at Law Libe, so check for NY DC then, at time of NY mailing) see Rooney for NYCTRS