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

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).

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

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

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

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.

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

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.

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

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.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Survivor & Death Benefits in QDROs