QDRO & QILDRO
QDRO and QILDRO
These Orders must be drafted carefully and contain the appropriate protections, including pre-retirement survivor annuity (in case of Participant’s death before retirement), cost-of-living adjustment provisions and other protections.
Alternatively, if the Judgment for Dissolution of Marriage or Civil Union does not grant certain interests in the Plan, the Orders should not provide anything that would inappropriately reduce the Participant’s portion.
Since the wording of the Judgment controls the wording of the QDRO or QILDRO, it is important that the proper provision and formulas are used. For example, the difference between “50% as of divorce” versus using the coverture formula (50% of the product of multiplying the benefit at retirement by a formula, the numerator of which is time participating in the plan during the marriage and the denominator of which is the total time participating in the plan) could mean hundreds or more dollars difference per month.
We have the expertise to draft or review a draft of any QDRO or QILDRO, and can review your Judgment before entry to make sure it contains the appropriate language to protect your interests.
Probably the most important thing to keep in mind is to get the QDRO or QILDRO entered as soon as possible. If there is no Order that has been entered and approved by the Plan Administrator at the time of Participant’s death, the Alternate Payee is likely to get nothing. He or she may have to file suit against the former spouse’s estate.
What if there is no money in the estate? What if the beneficiary of the plan was listed as another person and the money went straight from the plan to the new beneficiary? These are questions you never want to have to answer.
We have successfully processed QDRO’s and QILDRO’s throughout Illinois, in particular in Cook County, DuPage County, Kane County Lake County and Will County. Our attorney can assist you at a reasonable rate.
Depending on the case, we charge flat or hourly fees. Please complete and submit our QDRO questionnaire here to begin the process. We will then provide you with a free intake to determine if we can be of assistance.
