What Happens Now That Lehman Brother's No Longer Handles My Ex-Husband's Pension and We Are Going Through a Divorce?

Sandra G. of Miami, Fl., writes: "What Happens Now That Lehman Brother's No Longer Handles My Ex-Husband's Pension and We Are Going Through a Divorce?"

A. Evan, from the QDRO Department of Pension Evaluators & QDROS Of Troyan, Inc Associates Group answers: "The Employee Retirement Income Security Act of 1974 (ERISA) protects the interests of participants and beneficiaries in private-sector employee benefit plans. ERISA supersedes state laws relating to employee benefit plans except for certain matters such as state insurance, banking and securities laws, and divorce property settlement orders by state courts. ERISA does not require employers to provide pensions, but those that do must comply with its requirements.

ERISA also established the Pension Benefit Guaranty Corporation (PBGC) to ensure that plan participants receive promised benefits, up to a statutory limit, should a plan terminate with a lack of sufficient assets to pay promised benefits.

Responsibility for enforcing ERISA is shared by the Department of the Treasury, the Department of Labor, and the Pension Benefit Guaranty Corporation (PBGC). In the Department of the Treasury, the Internal Revenue Service oversees standards for plan participation, vesting, and funding. The Department of Labor regulates fiduciary standards and requirements for reporting and disclosure of financial information. The PBGC;a government-owned corporation; administers the pension benefit insurance program."

Evan Edelstein

Lead QDRO Consultant