Survivor & Death Benefits in QDROs Flashcards

What is a Qualified Pre-Retirement Survivor Annuity (QPSA)?

Answer: An annuity paid to the surviving spouse if the participant dies before the annuity starting date

A QPSA is a survivor annuity provided to the surviving spouse if the plan participant dies before the annuity starting date (i.e., before retirement benefits begin).

Under ERISA, which types of plans are required to provide a Qualified Joint and Survivor Annuity (QJSA)?

Answer: Defined benefit plans and money purchase pension plans

ERISA requires defined benefit plans and money purchase pension plans to offer a QJSA as the default form of payment for married participants.

A QDRO can award the alternate payee survivor annuity rights even if:

Answer: The participant has already begun receiving retirement benefits

A QDRO can assign survivor annuity rights to an alternate payee even after the participant has begun receiving benefits, provided the plan's terms permit such an award.

What happens to an alternate payee's potential survivor benefit if the participant dies before the QDRO is finalized by the court?

Answer: The alternate payee may still be entitled to benefits if a qualifying order is subsequently issued

Courts may still issue a qualifying domestic relations order after a participant's death, and many plans place disputed funds on hold pending qualification of a pending order.

Which provision in a QDRO specifically protects the alternate payee's interest in receiving a pre-retirement death benefit?

Answer: The pre-retirement survivor annuity designation clause

A pre-retirement survivor annuity designation clause in a QDRO explicitly protects the alternate payee's interest if the participant dies before retirement benefits commence.

Under the 'separate interest' approach in a defined benefit plan QDRO, what happens to the alternate payee's benefit if the alternate payee dies before the participant?

Answer: The separate interest ceases and is forfeited

Under the separate interest approach, the alternate payee's benefit is based solely on their own life, so if the alternate payee dies, their separate interest ceases without reversion to the participant.

What is the key distinction between QJSA and QPSA survivor protections as they relate to a QDRO?

Answer: QJSA applies after the annuity starting date; QPSA applies before the annuity starting date

The QJSA protects the surviving spouse after the annuity starting date (post-retirement), while the QPSA protects the surviving spouse if the participant dies before retirement benefits begin.