Empower QDRO

The plan approves the order

In this arrangement, Empower's overview says "The plan administrator or Third Party Administrator (TPA), reviews all DROs to determine if the order constitutes a QDRO under the terms of the plan." The plan may also hire an outside QDRO consultant to do the review. The alternate payee "Submits a copy of the order to plan administrator, TPA, or other third party QDRO consultant." Once the reviewer approves it, the reviewer completes Empower's QDRO Plan Approval form and sends the approval to Empower for processing.

Empower approves the order

In the other arrangement, "The plan administrator amends the plan procedures to adopt a model form of QDRO," and "Empower reviews all DROs to determine if they reflect all required information as stated on the QDRO Model Form." Empower's overview says this service is "Not available for plans offering a Qualified Joint & Survivor Annuity (QJSA) payout option or plans with restrictive QDRO distribution provisions."

For plans that use Empower's approval service, the overview says the alternate payee "Obtains a copy of the Model QDRO by contacting a Service Center Representative," completes it, "obtains appropriate judicial approval," and submits it to Empower. Empower checks that the order "contains all required elements" and asks the participant, alternate payee or counsel for more information if needed. When the order is in good order, Empower "Sends a QDRO Interpretation letter to all QDRO parties."

A model order is written so the plan can process it. Before you fill one in, check each choice against the settlement agreement: the amount or percentage, the date it is measured on, whether the share earns gains and losses until it is split off, and how a loan is treated. See sample QDRO language for what to check in any model order.

Empower's overview does not give one mailing address, fax or portal for every plan. Where the plan approves orders, the order goes to the plan administrator, third party administrator or the plan's QDRO consultant. Where Empower approves orders, the completed model QDRO goes to Empower. The overview also says the alternate payee's distribution request form "may be submitted at the same time the Model QDRO is submitted for review." The exact route for a given plan is in that plan's QDRO procedures.

Empower's overview says it "Places a distribution restriction on the participant's account when in receipt of a DRO or notified by the Client or TPA of a pending divorce." The overview describes the next steps this way: after approval, Empower removes the restriction, segregates the assets and "Deposits alternate payee assets into a QDRO takeover account held for the benefit of the alternate payee." Empower says the overview is general and not specific to any plan, so the plan's own procedures control.

Empower's overview gives no processing time, no fee amount and no pre-approval step for drafts. On fees, it says only that "Additional plan administration fees may apply" where Empower provides approval services. The overview describes Empower reviewing an order that already has judicial approval. Whether a particular plan reviews drafts before the judge signs, and what it charges, is in that plan's procedures. We have left out anything we could not confirm from Empower's own published material.

We find out who reviews orders for the plan, get that reviewer's procedures and model order, check them against the settlement agreement, and draft the order for that plan. If the plan offers pre-approval, we submit the draft and handle any changes it asks for. Counsel or the parties then take the order to the court and send the signed copy on. A standard QDRO, such as a 401(k) or private pension order, is a $700 flat project fee. See the pricing page.

If you are drafting it yourself, the do it yourself QDRO guide walks through the steps. We have also written about why an Empower subpoena can come back empty when older records are needed.