QDRO Survivor & Death Benefits in QDROs 2

Question 1

When a QDRO designates the alternate payee as a surviving annuitant, how is the participant's monthly retirement benefit typically affected?

Accepted Answer

It is actuarially reduced to fund the future survivor benefit for the alternate payee

Answer

It is increased to cover the additional survivor benefit cost

Answer

It is unaffected because the plan absorbs the survivor benefit cost

Answer

It is paid in a lump sum to offset anticipated survivor costs

Question 2

A 'pop-up' provision in a defined benefit plan means that:

Accepted Answer

The participant's reduced benefit is restored to the full unreduced amount if the alternate payee predeceases the participant

Answer

Benefits are paid as an accelerated lump sum upon participant death

Answer

The alternate payee receives enhanced monthly payments during retirement

Answer

Benefits automatically convert to COLA-adjusted annuities at age 70½

Question 3

Which IRC section governs the Qualified Pre-Retirement Survivor Annuity (QPSA) requirements for qualified pension plans?

Accepted Answer

IRC Section 401(a)(11)

Answer

IRC Section 402(c)

Answer

IRC Section 414(p)

Answer

IRC Section 72(t)

Question 4

In a 401(k) plan QDRO where the alternate payee receives a separate account, what happens to that account upon the alternate payee's death?

Accepted Answer

It passes to whomever the alternate payee has designated as beneficiary

Answer

It must be paid as an annuity matching the participant's distribution form

Answer

It automatically reverts to the plan's general assets

Answer

It is automatically paid to the original participant

Question 5

What must a QDRO explicitly specify to ensure the alternate payee receives a pre-retirement survivor benefit in a defined benefit plan?

Accepted Answer

A provision designating the alternate payee as the surviving spouse equivalent for survivor benefit purposes

Answer

The alternate payee's date of birth and Social Security number only

Answer

The participant's expected retirement date and projected benefit amount

Answer

The plan's actuarial assumptions and funding formula in detail

Question 6

Under ERISA Section 205, when may a plan participant waive the automatic Qualified Pre-Retirement Survivor Annuity?

Accepted Answer

Only during a specific election period and with proper spousal consent

Answer

At any time by submitting a written waiver to the plan administrator

Answer

Only after reaching the plan's normal retirement age

Answer

Only if the plan has fewer than 25 participants

Question 7

How can a QDRO affect the plan's obligation to provide a QJSA to the participant's subsequent (current) spouse?

Accepted Answer

A QDRO can reduce or eliminate the current spouse's QJSA share by allocating survivor rights to the alternate payee

Answer

A QDRO cannot affect the current spouse's QJSA rights under any circumstances

Answer

The current spouse always retains 50% QJSA rights regardless of any QDRO

Answer

A QDRO automatically terminates all QJSA rights for any subsequent spouses