Applying a QDRO Offset

If you want an employee's calculation to include a QDRO offset component, you must explicitly include it in the plan benefit formula. You can either include it in your basic formula, or you can create a separate formula and use grouping logic to ensure that employees with QDROs use the formula with the offset and employees without QDROs use the basic formula.

PeopleSoft provides a special alias for your offset formula. QDRO_AMT references the fixed amount of the QDRO benefit as entered in Pension, Domestic Relations Order, Administer QDRO, Administer QDRO. The system takes care of changing the value of the alias for each plan in the calculation. If there is more than one QDRO against the employee, the system automatically adds the offsets together.

Typically, you incorporate the offset through simple subtraction: the total benefit minus the QDRO_AMT is the remaining benefit. The caveat is that the subtraction is only valid when the amounts reflect the same form of payment—for example a single life annuity—and the same commencement date, usually normal retirement date.

For example, if Paul's normal benefit is 2,000 USD per month as a single life annuity beginning at age 65, and Mary's QDRO entitles her to 1,000 USD per month single life annuity also beginning at Paul's age 65, you can subtract the numbers directly.

If you choose to set up rules differently depending on whether an employee has a QDRO, you apply the different definitions using grouping logic. For example, you can set up a benefit formula function result with the following components: