IPERS QDRO Instruction Packet

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General CommentsIPERS is a governmental pension plan. IPERS is not governed by the provisions of the Employee Retirement IncomeSecurity Act of 1974 (ERISA) or most of the provisions of the Internal RevenueCode (IRC) that govern the division of qualified plan assets. Although this packet uses the terms Alternate Payee and Qualified DomesticRelations Order, drafters should not confuse those with ERISA or IRC concepts.IPERS is a defined benefit plan, not a defined contribution plan like a 401(k). IPERS benefitsare determined by a formula. Do not submit Orders that treat Member’s IPERS interestslike defined contribution plans. A report of Member and employer contributions andinterest does not necessarily represent the “value” of a Member’s account.IPERS will not prepare lump-sum present value calculations representing the “value” ofa Member’s account. It is up to the parties or the judge to determine. A qualifiedcertified public accountant or actuary may prepare this type of calculation for you.IPERS suggests Members and their Attorneys generate and review a Benefit Statement,Pension Estimate or Your Transaction Details, by creating an on-line account here:https://www.ipers.org/login.htmlEffective May 8, 20134
If a Member is still legally married, the Member must obtain written consent from thespouse to provide and updated Enrollment/Beneficiary Designation form to IPERS.http://www.ipers.org/forms/members/beneficiaryform.pdfIPERS accepts only a shared payment method for dividing benefits. The Member’s IPERS account remains whole. Payments to the Member and Alternate Payee are split at the same time. The Alternate Payee cannot receive any payment until the Member (or theMember’s beneficiaries) receives payment under a trigger event (qualifyingdistribution(s) of benefits made with respect to a Member).There are three ways of dividing a Member’s gross benefits payable at the date theMember begins receiving benefits (the date of distribution), under the shared paymentmethod (See Drafting Samples―Paragraph 3): a straight percentage; a service factor percentage method; or a specific dollar amount (sum certain).A preretirement QDRO may award an Alternate Payee a share of benefit paymentsrelated to any or all of the following trigger events: Member applies for a monthly benefit (Pension) Member applies for a lump-sum benefit (Refund or an AE is payable) Preretirement lump-sum death benefits become payable Postretirement death benefits become payableA postretirement QDRO may only award an Alternate Payee a share of benefitpayments related to a monthly benefit (Pension) and a few select Optional provisions.NOTE: If a Member has retired and is receiving monthly distributions, the Orderwill be rejected if it contains Optional Paragraphs C, D, E, or F.For Members who are retired and then reemployed in new IPERS-covered employment,there may be additional benefits to which the Member and Alternate Payee may (or maynot) be entitled. This provision is outlined in Drafting Samples―Paragraph 3.IPERS may discuss questions of a general nature. However, a properly completedIPERS Authorization for Release of Information form must be on file with IPERS beforeconfidential information can be shared with anyone other than the Member:https://www.ipers.org/forms/members/authorizationforreleaseofinformation.pdfParagraph 7 states that the Alternate Payee may request information from the Member’saccount. IPERS will only provide copies of information dated after the QDRO isqualified and that has already been provided to the Member, as archived in the account.Effective May 8, 20135
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Page 3: IntroductionYou are likely reading
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Page 19 and 20: C. Form of BenefitThe Member shall
Page 21 and 22: -OR-Designation of Contingent Annui

IPERS QDRO Instruction Packet

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