Using QDRO with Optional Forms of Payment

If your company intends to calculate QDRO benefits using Pension Administration, be sure your plan rules support these calculations. QDRO calculations typically start with a fixed benefit amount and only run these functions: early and late retirement factors, benefit formula, and optional forms of payment. Even if there are minimal optional forms available to QDRO alternate payees, you need to have optional forms of payment results available so that the payment process has access to the payment amounts.

Because QDRO alternate payees are not permitted to make a new spouse the beneficiary of a QDRO benefit, joint and survivor forms are generally not available to QDRO alternate payees unless the plan permits non-spouse beneficiaries.