As defined in the Internal Revenue Code, a QDRO is a legal order subsequent to a divorce or legal separation that splits and changes ownership of retirement plan assets to give the divorced spouse their share of the assets or pension benefits.
The new service from PSA, called QDROPRO, is meant to reduce administrative burdens and mitigate fiduciary liability for plan sponsors and advisers tasked with managing QDROs.
The solution covers the following areas relating to QDRO management:
- Drafting of a plan-specific sample QDRO;
- Establishment and documentation of all QDRO administrative procedures;
- Analysis and qualification of draft QDROs;
- Correction of unqualified orders;
- Coordination with the plan’s recordkeeper from initial notification to account split; and
- Communication with plan participants, alternate payees and legal counsel.
In a statement, PSA says QDROPRO can help fiduciaries ensure that QDRO determinations are made in a timely, efficient and cost-effective manner that is consistent with the plan’s rules and applicable law.
PSA’s fee of $600 per qualification can be paid by the plan sponsor or by the participant and alternate payee.
PSA clients can learn more by calling 312-214-1500. More information is also available at www.psaretire.com.