Tuesday, January 01, 2008 | Kenneth A. Mason
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QDROs, Qualified Retirement Plans
A recent case from Kentucky illustrates the importance of careful drafting of the terms of a qualified domestic relations order (“QDRO”). In Braehler v. Ford Motor Co., U.A.W. Retirement Plan, the court dismissed a claim brought by the second wife of a former Ford employee for a portion of the survivor benefits provided by his retirement plan. As a result of the court’s decision, the first wife will continue to receive the entire survivor’s benefit, even though the retiree designated his second wife as his “surviving spouse” when he elected to take a joint and survivor annuity. This result demonstrates that if the terms of a QDRO are not carefully considered they may create unnecessary litigation and perverse outcomes, even when the intention of the parties is clear.
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