A qualified domestic relation order (QDRO) is a court order in a domestic relations case that orders pension or retirement plan benefits to be used to provide alimony or child support, or to divide marital property in a divorce. ERISA is the primary federal law governing pension plans of employers. ERISA was amended in 1984 by the Retirement Equity Act. One of the provisions of the 1984 amendment created an exception to ERISA's preemption provisions for a qualified domestic relations order. ERISA defines a QDRO as a domestic relations order that creates or recognizes the existence of an alternate payee's right to receive, or assigns to an alternate payee the right to receive, all or a portion of the benefits payable with respect to a participant under a pension plan, and that includes certain information and meets certain other requirements. Under federal law, the administrator of the pension plan that provides the benefits affected by an order is the individual (or entity) initially responsible for determining whether a domestic relations order is a QDRO.
Among other requirements, ERISA specifies that a QDRO must contain all of the following information:
" The name and last known mailing address of the participant and each alternate payee;
" The name of each plan to which the order applies;
" The dollar amount or percentage (or the method of determining the amount or percentage) of the benefit to be paid to the alternate payee; and
" The number of payments or time period to which the order applies.
A qualified domestic relations order (QDR) in Texas is a legal document that allows for the division of retirement assets between divorcing spouses or former spouses. It is designed to ensure that retirement benefits are fairly distributed in accordance with the Texas Family Code. In Texas, there are several types of qualified domestic relations orders, depending on the specific retirement plan involved. Some common types include: 1. Defined Contribution Plans: This type of QDR applies to retirement plans in which an account is maintained for each participant, such as a 401(k) or 403(b) plan. The QDR would specify the amount or percentage of the account to be awarded to the alternate payee (former spouse). 2. Defined Benefit Plans: This type of QDR is applicable to pension plans that provide a specific monthly benefit amount upon retirement. It outlines how the benefits will be divided, either through a fixed amount or through a percentage of the benefit. 3. Federal Employee Retirement System (FEES): QDR Os for FEES plans are specific to the retirement benefits of federal employees. It addresses the division of pension benefits, thrift savings plan, and other related benefits. 4. Military Retirement: Military retirement benefits can also be divided through a QDR. It covers the division of retired pay for service members, including pensions and survivor benefits. The QDR must meet certain requirements outlined by the Employee Retirement Income Security Act (ERICA) to be valid. It must include details about the participants involved, the benefits to be divided, the methodology of division, and the plan administrator's information. When a divorce is finalized, the QDR must be approved by the court and then submitted to the plan administrator of the retirement plan. The plan administrator will review the QDR to ensure its compliance with the plan's specific requirements. It is important to consult with a qualified family law attorney in Texas who specializes in QDR Os to ensure all relevant aspects are properly addressed. Divorcing couples should consider the importance of seeking professional legal advice to protect their rights and ensure a fair division of retirement assets through a qualified domestic relations order.
