Spousal Rights Under ERISA Plans: Avoiding Loss of Benefits After Divorce, Ensuring Regulatory Compliance

This CLE webinar will guide benefits counsel on the issues associated with the spousal rights to benefits under ERISA. The panel will address the necessary procedures and challenges in securing qualified domestic relations orders (QDROs), qualified medical child support orders (QMCSOs), and other spousal rights and methods to ensure compliance with ERISA. The panel will also discuss issues in providing employer-sponsored medical benefits to dependents in divorce or child support and employer and plan administrator responsibility in enforcing court orders impacting a plan participant's pension or other benefits.

Retirement plans and other benefits often make up the majority of many individuals' assets and are the most important aspects of divorce settlements or other actions impacting retirement accounts. Counsel must avoid mistakes in securing the rights of non-participant spouses to prevent the loss of benefits. Plan administrators must ensure plan documents and procedures are in accord with ERISA when enforcing any court orders affecting a plan participant's benefits.

A divorce, separation, or other proceeding may result in an order or decree that divides a participant's retirement plan benefit between the participant and an alternate payee, such as a spouse, former spouse, child, or other dependents. These QDROs or QMCSOs must meet requirements under ERISA to allow the plan administrator to divide the participant's benefits. The prevalence of pitfalls and the potential impact of errors force practitioners to anticipate and avoid mistakes in drafting QDROs and QMCSOs.

Errors resulting in loss of benefits to the non-participant spouse include failing to recognize survivor benefit issues, failing to know the difference in dividing an ERISA plan vs. a federal government plan for a federal employee, and a lack of understanding of the requirements for employers and plan administrators to enforce court orders under ERISA. Plan administrators are required to pay benefits under any QDRO. The plan must include written procedures for determining whether an order is a QDRO and how such benefits will be split.

Listen as our panel of experienced attorneys offers best practices for drafting and structuring QDROs and QMCSOs, key components in reviewing and approving them on behalf of benefit plan administrators, and methods to avoid the most prevalent errors in the division of retirement accounts.