Do you have any “ticking time bombs” in your file cabinets? Are you sure that all of the QDROs submitted to your company over the past ten years or more have been properly reviewed and documented? Let QDRO Compliance Services audit your historical QDRO files to be sure that they were officially approved and ready for future implementation. We will also confirm that appropriate “holds” are in place with your plan recordkeeper or actuary to prevent the participant from receiving funds or benefits that are intended for the alternate payee. We have found that many companies are having a difficult time implementing old QDROs that were approved many years ago. In some cases, submitted QDROs were never officially approved and implemented. Not only can this result in significant liability exposure for your company, but also many thousands of dollars are wasted annually on plan recordkeepers and actuaries that must reread and reinterpret old QDROs when it comes time for the calculation and implementation of the alternate payee’s benefits.
QDRO Compliance Services can audit your old QDRO files to be sure that they were officially approved and properly put-to- bed. In addition, we can prepare updated QDRO approval interpretation forms, when necessary, for submission to your plan recordkeeper and actuary. In this manner, they will not have to reinterpret the QDRO down the road. Your actuary will be able to rely on our forms for ease of calculation and administration of the QDRO.
Many companies amend their plans from time to time thus rendering an old QDRO approval (and interpretation) obsolete. For example, a company that has approved hundreds of QDROs over the years that applied to their then traditional defined benefit pension plan may have since converted their pension plan to a cash-balance plan. Now, they must reinterpret the old, previously approved QDROs that are no longer applicable to the terms and provisions of their new cash balance plan. Rather than letting their actuary review and reinterpret the old QDROs on an hourly-rate basis (which would have cost them hundreds of thousands of dollars), QDRO Compliance Services can prepare new QDRO approval interpretation forms instructing the parties how the QDRO would be administered under the new plan arrangement. If one or more parties or their attorneys disagree with our updated interpretation forms, they are free to submit amended QDROs as necessary. We do all of this for a nominal fee per QDRO.
Call QDRO Compliance Services today at (440) 567-0000 to find out more about having us audit your old QDRO files and lowing your company’s liability exposure.