What is an Example of When a QDRO Dollar Appraisal is Ordered?

Kevin, from Franklin Park, NJ, asks, "How do I know whether I need to get a QDRO Dollar Appraisal of not? Can you provide an example of when it would be ordered?"

Spencer Olsen from Pension Evaluators & QDROS Of Troyan, Inc Associates Group, answers, "Sure, here's a good example: When a new plan administrator takes over, they will usually not perform any calculations regarding benefits accrued prior to their plan administration date. For example, if the parties' date of separation was in 2003 but the plan administrator changed in 2005, the plan administrator will reject a QDRO with a valuation date in 2005 because they do not have records prior to 2007. This can present significant problems if the parties do not have their own plan statements for the time period from the date of marriage to date of separation; and will increase the expense involved in the QDRO as the parties may need to retain our acutarial services to perform a calculation to determine the marital interest in the Plan.