Benefit Restrictions on Retirement Plan

Placing Benefit Restrictions

The participant's benefit activity will be restricted when the Qualified Order Center receives one of the following:

• Draft domestic relations order
• Court order
• Joinder

The retirement plan administrator will start the process to prevent the participant from withdrawing money, which otherwise may be payable to the alternate payee if the order is approved as a Qualified Domestic Relations Order (QDRO).

Defined Contribution Plans

The participant will be able to change investment choices and contribution amounts during the restriction period. However, none of the following account activities will be allowed by the participant during the restriction period:

• Distributions
• Loans
• Withdrawals

Defined Benefit Plans

If benefits are already being paid to the participant during the QDRO process, the defined benefits plan administrator will suspend the benefit payments in the amount specified in the order. The suspension lasts until the order is qualified or for a maximum period of 18 months per order.

When an order is qualified, the suspended amount will be paid retroactively to the alternate payee. No more than 18 months of suspended money will be paid to the alternate payee. If the order isn't qualified within 18 months, the suspended amount will be retroactively paid back to the participant.

Removing Benefit Restrictions

When a court order or draft order is on file, account restrictions and suspensions of benefit payments (if applicable) may be removed when any of the following events occurs:

• A domestic relations order becomes qualified.
• A subsequent court-certified order is received. The new order must state that the alternate payee has waived his or her right to the participant's benefits under the plan, or that the participant is entitled to 100% of the benefit under the plan.
• A subsequent court-certified order is received that cancels the order that caused the restriction to be placed on the plan.
• A notarized letter signed by the alternate payee is received requesting the restrictions be removed and naming the plan affected. This method of removing a restriction is an available option only when a draft order has been submitted.
• A qualified order isn't submitted within the 18-month restriction or suspension period.

Note: Any new order received after a restriction has been removed will begin a new restriction period.