§35.05 Types of Qdros

• Jurisdiction: Washington

§ 35.05 TYPES OF QDROS

There are generally two approaches to dividing retirement plan benefits pursuant to a QDRO: one awards a separate interest in the retirement plan benefits to the alternate payee ("separate-interest QDRO") and the other allows the alternate payee to share in benefit payments as they are distributed ("shared-payment QDRO"). A separate-interest QDRO and a shared-payment QDRO may be used with either a defined benefit plan or a defined contribution plan, although certain factual situations often require that one approach or the other be used. For example, if a defined benefit plan participant is in pay status, the only permissible approach is the shared-payment QDRO.

In general, the parties should not simply state that a QDRO is intended to be a separate-interest QDRO or a shared-payment QDRO. Instead, the QDRO should set forth the intent of the parties with respect to the following items:

• What happens upon the death of the participant?
• What happens upon the death of the alternate payee?
• Are future contingent benefits to be included in valuing the participant's accrued

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