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Sunday, September 05, 2010

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SETTLEMENT ONLINE, P.C.
WWW.SETTLEMENT-ONLINE.COM
INFO@SETTLEMENT-ONLINE.COM
(312)725-9534
P.O. BOX 597662
CHICAGO, ILLINOIS 60659-7662

 

QDRO's and QILDRO's

 
 

What Are They?


 
  

If you or your spouse had or have interest in a retirement plan, such as a defined benefit plan (also known as pension plan) or a defined contribution plan (a 401(k) type plan) and you will be dividing that interest, you will need a special court order known as a Qualified Domestic Relations Order ("QDRO") or, if it is an Illinois State or municipality plan (such as SURS, or TRS or Chicago Public Schools pension), a Qualified Illinois Domestic Relations Order ("QILDRO").


 
 

What Is The Process?


 
  

These Orders need to be drafted. Then, they should be sent to the Plan Administrator for pre-approval. Once pre-approved, they need to be entered by a Judge. You then obtain a certified copy of the QDRO or QILDRO and provide that copy to the Plan Administrator. If the plan is a 401(k) type plan, the Plan Administrator will implement the QDRO and divide up the money, putting the other person’s money into a new account in his/her name. If the plan is a pension type plan (a plan that will pay a monthly benefit from time of retirement until death), the Plan Administrator will implement the QDRO or QILDRO and wait until the other person is eligible to receive his/her monthly benefit, at which time, the Plan Administrator will start sending him/her the monthly benefit due to him/her per the QDRO or QILDRO. These plans can be rather complicated, so to determine what type of Order and what options you may have, please contact us.


 
 

What Is the Cost?


 
  

For each QDRO or QILDRO, for the price below, we will draft the Order, send it to the Plan Administrator for pre-approval, and if the Plan Administrator requests changes, we will make all changes requested one time (if we make an error or typo, we will correct it/change it until it is right). Once the Order is pre-approved, or if the Plan Administrator refuses to provide the service of reviewing and pre-approving the Order, we will provide you with a clean version of the QDRO or QILDRO along with detailed instructions on how to complete the process and documents that you may need to complete it.



 
 
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