A Qualified Domestic Relations Order is a judgment, decree, or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a participant, which is made pursuant to state domestic relations law (including community property law) and meets specific criteria under federal pension law.
An “alternate payee” is any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under the Central Pension Fund with respect to such participant.
My spouse and I are in the process of obtaining a divorce. Can I obtain a portion of my spouse's accrued benefit under the Central Pension Fund?
In order for a former spouse (i.e., “alternate payee”) to obtain any legally enforceable claim to a portion of a participant’s accrued benefit under the Central Pension Fund, a court must enter an order satisfying the criteria for a Qualified Domestic Relations Order, as set forth under applicable federal pension law, 29 U.S.C. § 1056(d)(3), and pursuant to applicable state domestic relations law.
While we encourage you to include all of the information set forth in our sample language (see Question (5) below), at a minimum, a Qualified Domestic Relations Order under the Central Pension Fund must contain:
the names, addresses, Social Security numbers, and birth dates of both the participant and the alternate payee;
the correct name of the Plan-the Central Pension Fund of the International Union of Operating Engineers and Participating Employers;
the dollar amount or percentage of the participant’s accrued benefit to be awarded to the alternate payee; and
the relevant marital period to be used to calculate the alternate payee’s interest.
The “marital period” is a period of time specified in the Qualified Domestic Relations Order upon which the division of the participant’s benefit between the participant and the alternate payee is to be based. The marital period must fall within the period of the participant’s participation in the Plan and must have a beginning date and an ending date, including the month, day and year.
In addition, the order should clearly provide guidance with respect to the following issues:
the alternate payee’s rights, if any, to future accruals;
future increased vesting and its effect on the alternate payee’s interest in the participant’s accrued benefit; and
the effect of either the participant or the alternate payee predeceasing the other.
Yes. You can request a copy of sample language for Qualified Domestic Relations Orders, which has been approved by the Board of Trustees, by writing to our office at the address shown below:
Central Pension Fund of the
International Union of Operating Engineers
and Participating Employers
4115 Chesapeake Street, N.W.
Washington, D.C. 20016-4665
Fax No.: (202) 364-2913
Attn: Assistant Fund Counsel
Please be sure to include the participant’s name and Social Security number in your request.
Generally, one of two methods can be used to award an alternate payee an interest in a participant’s accrued benefit pursuant to a Qualified Domestic Relations Order if the participant has not yet commenced receiving benefits. The most common method of dividing a participant’s accrued benefit is to separate the benefit into two separate single life annuities, each subject to a 60 payment minimum guarantee. In the alternative, the alternate payee may receive a specific percentage or a specific dollar amount of the participant’s monthly benefit accrued during the marital period.
If a participant has already begun receiving benefits under the Central Pension Fund, the alternate payee may only receive a specific percentage or a specific dollar amount of the participant’s monthly benefit accrued during the marital period pursuant to a Qualified Domestic Relations Order. All calculations will take into consideration all payments made prior to the entry of such Qualified Domestic Relations Order.
All retirement benefits under the Central Pension Fund, including benefits paid pursuant to a Qualified Domestic Relations Order, are only paid in the form of a monthly annuity.
All retirement benefits under the Central Pension Fund, including benefits paid pursuant to a Qualified Domestic Relations Order, are only paid in the form of a monthly annuity.
Can an alternate payee receive a lump sum payment of his or her interest in the participant’s accrued benefit pursuant to a Qualified Domestic Relations Order under the Central Pension Fund?
No. With limited exceptions for death benefits, the Central Pension Fund’s Plan of Benefits does not permit lump sum payments. As noted above, benefits are only payable in the form of a monthly annuity.
No. As noted above, there is no provision in the Central Pension Fund’s Plan of Benefits for a lump sum distribution to a participant, beneficiary or alternate payee. Therefore, an alternate payee’s interest in a participant’s accrued benefit under the Central Pension Fund is not eligible for “roll over” into an individual retirement account or another tax-qualified plan.
Generally, an alternate payee may commence receiving benefits only after the participant has attained “Earliest Retirement Age” which, under the Central Pension Fund’s Plan of Benefits, is the first day of the month following the month in which the participant attains age 55. If an alternate payee commences receipt of benefits prior to the participant’s attainment of Normal Retirement Age (age 65), generally the alternate payee’s benefits will be reduced in accordance with the Plan’s requirements. Each alternate payee must advise the Board of Trustees of the Central Pension Fund in writing of his her desire to commence receipt of benefits. The alternate payee should include the effective date on which he or she would like benefits to commence.
Can a participant who is already receiving benefits under the Central Pension Fund revoke his or her existing payment election (e.g., 50% Qualified Joint and Survivor Annuity, 66 2/3% Qualified Joint and Survivor Annuity, etc.) pursuant to a Qualified Domestic Relations Order?
A participant who is currently receiving benefits under the Central Pension Fund may only revoke his or her existing payment election on a prospective basis, pursuant to a Qualified Domestic Relations Order that is approved by our office and entered by a court having jurisdiction under applicable state law.
If the participant’s benefit under the Central Pension Fund has been divided into two separate single life annuities, the death of the participant will not have any effect on the Plan benefits that are payable to the alternate payee; likewise, the death of the alternate payee will not have any effect upon the Plan benefits that are payable to the participant.
If the Qualified Domestic Relations Order only awards the alternate payee a specified dollar amount or a specific percentage of the participant’s monthly benefit accrued during a specified marital period, upon the participant’s death, the alternate payee’s right to receive benefits will be forfeited unless the Qualified Domestic Relations Order provides that the alternate payee is to be considered the surviving spouse for purposes of any Qualified Pre-Retirement Survivor Annuity or Qualified Joint and Survivor Annuity benefits under the Plan (see Questions (16 and (17) below). Similarly, under this scenario, an alternate payee’s benefits will cease upon such alternate payee’s death, subject to the Plan’s 60 payment minimum guarantee.
If the participant’s benefit is divided into two separate single life annuities, generally an alternate payee need not be considered the surviving spouse for purposes of a Qualified Pre-Retirement Survivor Annuity, because the participant’s death will not affect the alternate payee’s ability to obtain his or her own separate single life annuity. Although not generally written in this manner, a Qualified Domestic Relations Order could also provide that an alternate payee is to be considered the surviving spouse for purposes of any Qualified Pre-Retirement Survivor Annuity to the extent of the alternate payee’s interest pursuant to the Qualified Domestic Relations Order. Note, however, that if an alternate payee is designated as surviving spouse for purposes of any Qualified Pre-Retirement Survivor Annuity, and if such alternate payee commences receiving a survivor annuity, such alternate payee’s right to receive the separate single life annuity described in the first sentence of this paragraph would cease.
If the alternate payee is awarded a specified percentage or a specific dollar amount of the participant’s benefit, an alternate payee may be considered a surviving spouse for purposes of a Qualified Pre-Retirement Survivor Annuity if the Qualified Domestic Relations Order so provides.
May an alternate payee be designated as surviving spouse for purposes of a Qualified Joint and Survivor Annuity under the Central Pension Fund pursuant to a Qualified Domestic Relations Order?
If the participant’s benefit under the Central Pension Fund is divided into two separate single life annuities, an alternate payee may not also be considered a surviving spouse for purposes of a Qualified Joint and Survivor Annuity, since doing so may cause the Plan to pay increased benefits.
If, however, the alternate payee is only awarded a specified percentage or a specific dollar amount of the participant’s monthly benefit accrued during a specific marital period, an alternate payee may be considered a qualified spouse for purposes of a Qualified Joint and Survivor Annuity, if the Qualified Domestic Relations Order so provides.
If an alternate payee dies before benefits payable to him or her have been distributed in full pursuant to a Qualified Domestic Relations Order under the Central Pension Fund, any death benefits will be paid to the alternate payee’s designated beneficiary. If the alternate payee has not designated a beneficiary or if the designated beneficiary does not survive the alternate payee, any death benefits will be paid to the alternate payee’s estate.
It is the policy of the Central Pension Fund that an alternate payee may only designate a beneficiary after benefit payments commence to such alternate payee.
If additional benefits are earned based upon a participant’s Plan participation subsequent to the date on which a Qualified Domestic Relations Order is entered by the court, the alternate payee’s interest in the participant’s accrued benefit under the Central Pension Fund generally will not be increased unless the terms of the Qualified Domestic Relations Order specifically provide for such an increase.
Yes. Although a participant may not have been vested at the time the Qualified Domestic Relations Order was entered by the court, an alternate payee will be entitled to receive the benefits awarded to him or her under the Central Pension Fund pursuant to the Qualified Domestic Relations Order if the participant later becomes vested, but the amount of the benefit will be based upon the marital period set forth in the Qualified Domestic Relations Order. If the participant does not have a vested interest under the Central Pension Fund at the time the Qualified Domestic Relations Order is entered by the court, and the participant does not subsequently becomes vested, the alternate payee’s benefits under the Qualified Domestic Relations Order will be forfeited.
If a Qualified Domestic Relations Order awards an alternate payee a portion of a participant’s benefits earned during a specified marital period, and the value of the benefits earned during such period increases due to a Plan amendment after the Qualified Domestic Relations Order is entered by the court, the portion of the benefits awarded to the alternate payee will generally be increased in accordance with the Plan amendment unless the Qualified Domestic Relations Order specifically provides that the amount payable to the alternate payee will be determined without regard to any future Plan amendments increasing benefits.
If a participant is currently receiving disability benefits under the Central Pension Fund, the Qualified Domestic Relations Order must specify whether the alternate payee is entitled to share in the disability benefits payable to the participant before the participant attains Normal Retirement Age. The Qualified Domestic Relations Order must also specify the amount or percentage of such benefits awarded to the alternate payee. If the participant has not qualified for disability benefits under the Central Pension Fund at the time the Qualified Domestic Relations Order is entered by the court, but qualifies at a later date, the alternate payee will share in such disability benefits only if the Qualified Domestic Relations Order so provides. If the Qualified Domestic Relations Order is silent with respect to disability retirement, the alternate payee will not be entitled to receive a portion of any disability benefits payable to the participant.
Under the law, an alternate payee has the status of a “beneficiary.” Accordingly, copies of documents, announcements, descriptive materials, and other general information given to or generally made available to beneficiaries under the Central Pension Fund will be furnished to an alternate payee.
Will the Central Pension Fund review and approve a proposed Qualified Domestic Relations Order prior to its entry by a court?
Yes. Within a reasonable time (typically, one month) after it receives a proposed Qualified Domestic Relations Order, the Central Pension Fund will review and provide comments concerning the qualified status of a proposed order. Please mail or fax your request to the address shown above.