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ERISA Tips: Rules for Determining Whether a Domestic Relations Order Is a QDRO

Plan administrators must determine whether a domestic relations order is a QDRO within a reasonable period of time after receiving the order. What a reasonable period is will depend on the specific circumstances. For example, a domestic relations order that is clear and complete when submitted should require less time to review than an order that is incomplete or unclear. 
 
Plans must adopt reasonable procedures for determining the qualified status of domestic relations orders. Compliance with such procedures should ensure that determinations of the qualified status of an order take place within a reasonable period. Procedures that unduly inhibit or hamper the QDRO determination process will not be considered reasonable procedures.
 
Editor’s Note: ERISA Tips is a feature provided with you in mind — to make the newsletter more useful to you! If you have any content for ERISA Tips or the NTSA Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the NTSA Advisor, at [email protected]