QDRO Survivor & Death Benefits in QDROs 3

Question 1

When an alternate payee is awarded survivor annuity rights in a QDRO, what obligation does this create for the plan administrator?

Accepted Answer

The administrator must maintain adequate actuarial reserves for the alternate payee's potential future survivor benefit

Answer

The plan administrator must maintain adequate actuarial reserves for the alternate payee's potential survivor benefit, as it represents a contingent future liability that the plan must be financially prepared to pay.

Question 2

An alternate payee who is awarded survivor annuity rights under a QDRO is formally referred to as:

Accepted Answer

A surviving annuitant or surviving spouse equivalent

Answer

An alternate payee awarded survivor benefits under a QDRO is treated as a surviving annuitant or surviving spouse equivalent, giving them the same plan protections as a surviving spouse for benefit payment purposes.

Question 3

Which of the following drafting failures would most likely cause a QDRO's survivor benefit award to be ineffective?

Accepted Answer

The QDRO does not include language treating the alternate payee as the surviving spouse for survivor benefit purposes

Answer

If a QDRO fails to include explicit language treating the alternate payee as a surviving spouse or surviving annuitant, the survivor benefit award will not be legally effective under plan terms.

Question 4

Under the shared payment approach in a defined benefit plan QDRO, what happens to the alternate payee's payments upon the participant's death?

Accepted Answer

Payments cease upon the participant's death unless survivor benefits are separately specified in the QDRO

Answer

Under the shared payment approach, the alternate payee's payments are linked to the participant's benefit stream and cease when the participant dies, unless a separate survivor benefit provision is explicitly included in the QDRO.

Question 5

Why does the 'separate interest' approach generally provide better survivor benefit protection for the alternate payee compared to the 'shared payment' approach?

Accepted Answer

It creates an independent benefit based on the alternate payee's own life, eliminating dependency on the participant's survival

Answer

The separate interest approach creates an independent benefit stream for the alternate payee based on their own life expectancy, so the alternate payee's benefit is not extinguished if the participant dies first.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Survivor & Death Benefits in QDROs 3