Sacramento Qualified Domestic Relations Order (QDRO) Lawyers
A court order dividing retirement plans is called a "Qualified Domestic Relations Order" or "QDRO." A federal law called, "ERISA" allows California to apply its community property rules to companies and employees operating inside California Court orders can be drafted to assign a portion of benefits to a former spouse for a variety of different types of plans.
With more than 30 years of California family law practice to support us, we feel qualified to advise you on all retirement plans and QDRO situations should they arise. Please ask one of our QDRO attorneys before you agree to settle on matters of such importance. We understand the value of pensions.
Each type of QDRO plan has its own guidelines and methods for distributing retirement benefits. Below are descriptions of the various types of plans, and the manner in which benefits are distributed between divorcing parties.
ERISA Defined Benefit Plans
This is a private retirement plan set up by a company, union or individual that provides a participant with a monthly income for life upon retirement. Examples: IBM Retirement Plan, AT&T Pension Plan, Bricklayers Pension Fund-Local 21.
When a QDRO is drafted for this type of plan, benefits to the former spouse may start when the participant reaches his/her earliest retirement age or when he/she actually retires or at any time in between. The benefit is distributed in monthly payments for either the lifetime of the participant or the former spouse.
ERISA Defined Contribution Plans
This is a private tax-deferred savings plan set up by a company, union or individual that will provide an income to a participant upon retirement. Examples: Any 401(k) Plan, Profit Sharing Plan, or Employee Stock Ownership Plan sponsored by a company, e.g., John Doe IRA Account #123456.
According to the terms of the QDRO, benefits may be paid in a lump sum payment to the former spouse immediately, when the participant reaches his/her earliest retirement age or at any other time as permitted by the plan.
Federal Government Plans
Government employees are members of either the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). Examples: employees of the Postal Service, Federal Aviation Dept., civilian employees on military bases.
When a Court Order Acceptable for Processing is drafted, monthly benefits to the former spouse will start when the participant retires, and will continue being paid for the lifetime of the participant. If the former spouse is entitled to a former Spouse Survivor Annuity, the monthly annuity will start when the participant dies and will continue for the life of the former spouse.
United States Military Plans
The Military Retirement System provides benefits to members of the uniformed services. Examples: Army, Air Force, Navy, Marines, Coast Guard, Reserves, National Guard, Public Health Service, and the National Oceanic and Atmospheric Administration.
When a Retired Pay Court Order is drafted, monthly benefits will be sent to the former spouse when the member retires, and will continue for the lifetime of the member. If the former spouse is entitled to a Survivor Benefit Plan Annuity (SBP), the monthly annuity will start when the member dies and continues for the lifetime of the former spouse.
State & Local Government and Public School Employees Plans
These plans cover anyone who is employed by a state or local municipality in any capacity or any public school teacher throughout the country. An example is the California Teachers Pension & Annuity Fund.
When a Domestic Relations Order is drafted, monthly benefits will be sent to the former spouse when the participant retires, and continue for the lifetime of the participant. Under some plans, the former spouse may be designated as the beneficiary of a survivor annuity under a specific benefit option that must be specified in the order; otherwise, typically all payments to the former spouse end when the participant dies.
Hiring a California Family Law attorney with QDRO experience can make a significant difference in reaching a just settlement. Call one of our experienced Sacramento divorce attorneys at 866-720-3666 or contact us through our website to discuss your situation.
This does not constitute a guarantee, warranty or prediction regarding the outcome of your legal matter.
