QDRO Survivor & Death Benefits in QDROs

Question 1

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

Accepted Answer

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

Answer

An annuity paid to the participant upon early retirement

Answer

A benefit paid to the alternate payee upon the participant's post-retirement death

Answer

A lump-sum payment made to all named beneficiaries at plan termination

Question 2

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

Accepted Answer

Defined benefit plans and money purchase pension plans

Answer

Only 401(k) plans with more than 100 participants

Answer

Only SEP-IRAs and SIMPLE IRAs

Answer

All employer-sponsored IRA accounts

Question 3

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

Accepted Answer

The participant has already begun receiving retirement benefits

Answer

The plan has fewer than 10 participants

Answer

The alternate payee has remarried and changed their name

Answer

The divorce occurred more than 10 years ago

Question 4

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

Accepted Answer

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

Answer

The benefit is automatically forfeited because no order exists

Answer

The current spouse automatically receives all survivor benefits

Answer

The plan must hold the disputed funds pending court resolution

Question 5

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

Accepted Answer

The pre-retirement survivor annuity designation clause

Answer

The shared payment approach clause

Answer

The cost-of-living adjustment clause

Answer

The early withdrawal penalty waiver clause

Question 6

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?

Accepted Answer

The separate interest ceases and is forfeited

Answer

Benefits revert entirely to the participant's account

Answer

Benefits are paid to the participant as a survivor annuity

Answer

Benefits transfer to the alternate payee's estate for distribution

Question 7

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

Accepted Answer

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

Answer

QJSA applies only to defined contribution plans; QPSA applies only to defined benefit plans

Answer

QPSA requires plan participant consent; QJSA does not require any consent

Answer

QJSA and QPSA are identical in application and timing