Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Accrued Benefit
A benefit earned under a defined benefit plan as of a specific date.
alternate payee
Any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all or a portion of the participant's retirement benefits payable under the plan.
Annuity Start Date
The date when the participant is scheduled to begin receiving benefits in a defined benefits plan.
Asset
Another word for property.
B
C
Child(ren)
The employee's natural child, adopted child, or child under age 18 who has been placed with the employee for adoption. A child may also be the employee's grandchild or stepchild, the child of the employee's domestic partner or other individuals, but only if provided by the health plan.
Child(ren)'s Representative
A third party who may receive copies of all correspondence on behalf of the child(ren) regarding the NMSN and QMCSO process. Examples of a child(ren)'s representative are a custodial parent, legal guardian, state official, or state agency.
Cost-of-Living Adjustment (COLA)
A small incremental increase in retirement benefits provided to retirees by some plans to keep benefits in line with inflation.
Court-Certified
A court-certified order is signed or stamped by the judge or other court official and has a stamp or seal from the clerk of the court stating the order is certified. Contact us to learn if a photocopy or a faxed copy of a court-certified order is acceptable for qualification requirements.
D
Default Coverage
The group health plan in which the child(ren) will be enrolled if an order or NMSN doesn't specify a plan or the employee isn't enrolled in coverage.
Defined Benefit Plan
A retirement plan in which the amount of benefits received by an employee is defined by a formula, usually considering years of service and salary.
Defined Contribution Plan
A retirement plan in which the amount of benefits is determined by the amount contributed to the employee's account and any growth on contributions.
Determination Letter
A denial or approval notice mailed to the parties indicating that the order or NMSN has been denied or approved.
Domestic Relations Order
A court order, judgment, or decree recognizing the right of an alternate payee to receive all or part of a participant's retirement plan. If the order is submitted and determined to be qualified, it becomes a QDRO.
Draft Domestic Relations Order
A domestic relations order that hasn't been signed by the court.
E
Earnings/Losses
The amount of money greater or less than the contributions made to the savings plan, based on the performance of the plan.
Employee
The individual or retiree who is eligible for coverage under any of the employer's plans.
Employee Stock Purchase Plan (ESOP)
An employer-sponsored defined contribution (savings) plan in which participants can buy shares of the company's stock at a discounted price.
F
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H
I
Issuing Agency
The state support enforcement agency authorized to issue the NMSN, associated with the child support enforcement program under Part D of Title IV of the Social Security Act (IV-D Agency).
Interested People
The employee, child(ren), alternate payee, attorneys, child(ren)'s representative, designated representatives, and issuing agency (if applicable) mentioned in an order or NMSN.
J
Joinder
A court order that joins the employee benefit plan as a party to a divorce or separation proceeding.
K
L
M
Model Language
Sample language, preapproved by the employer, that the parties may choose to use when drafting an order.
N
National Medical Support Notice (NMSN)
A NMSN is designed to provide health coverage to eligible children of an employee who is divorced, separated, or never married. Coverage is provided through the employer's group health plan. A state child support enforcement agency is always involved in the case.
Nonqualified Plan
A retirement plan that an employer provides to a select group of highly compensated employoees for retirement benefits beyond those limited under qualified plans.
O
Order Number
The number assigned to your order that allows you to check the status on this site.
P
Participant
Term used in QDROs to distinguish the spouse whose employee retirement plan is being divided under the order.
Plan Administrator
The employer.
Preapproved Order
The order should satisfy the requirements of a QDRO, based on the employer’s QDRO requirements, once the court signs and certifies the order. Note: Preapproved court-certified orders go through a final qualification review. So if you change your order once it's been preapproved, it may be denied.
Procedures
A client-specific document which contains the client's QDRO or QMCSO requirements, as well as general information.
Q
Qualification Requirements
There are general qualification requirements that a domestic relations order or a medical child support order must meet. In addition, the order must satisfy the employer's QDRO or QMCSO requirements, or the order will be denied. You can get the employer's QDRO or QMCSO requirements on this site or by contacting us.
Qualified Domestic Relations Order (QDRO)
A domestic relations order that has been determined to meet specific requirements mandated by federal law and the provisions of the retirement plan. A domestic relations order is a court order, judgment, or decree issued under a state's domestic relations law. It recognizes the right of the spouse, former spouse, child or other dependent to receive all or part of the participant's account balance or accrued benefit in an employer retirement plan.
Qualified Medical Child Support Order (QMCSO)
A QMCSO provides health coverage to children of an employee who is divorced, separated, or never married. Coverage is provided through the employer's group health plan. The QMCSO process occurs through the court system.
R
S
Separate Interest Approach
A way of drafting a QDRO against a defined benefit plan that establishes a separate interest for the alternate payee. This separate interest provides the alternate payee with the ability to choose when to begin receiving benefits and to receive payment of benefits for his or her lifetime.
Shared Payment Approach
A way of drafting a QDRO against a defined benefit plan that provides for the alternate payee and participant to share the participant's benefits. This shared approach provides the alternate payee the right to receive a portion of the participant's benefits at the same time the participant receives benefits.
Subpoena
A subpoena is a court order commanding someone to appear in court or to produce documents.
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