Have you requested preliminary review from PBGC before submitting your proposed QDRO to the state court?
PBGC will conduct a preliminary review of your draft QDRO before it is submitted to the court and let you know if the draft requires changes to meet PBGC’s requirements.
Why it matters: Requesting preliminary review from PBGC helps you catch errors before the QDRO is finalized. More information on requesting a preliminary review is available in Qualified Domestic Relations Orders (QDRO) and PBGC.
Once you've finished drafting, submit the draft QDRO to the domestic relations court.
Have you sent the signed QDRO back to PBGC for qualification?
Getting a signed QDRO from the court is not the final step.
Why it matters: Only PBGC can confirm the alternate payee's legal right to receive a portion of any retirement benefits and "qualify" it as a QDRO – not the court.
What to expect from PBGC: Once PBGC receives the signed QDRO, it will begin the review process. Even if PBGC approved a draft, mistakes in the QDRO can lead to rejection. If PBGC rejects your QDRO, revise it, have the revised version issued by a court, and resubmit it to PBGC promptly.
Best practice
Get written confirmation from PBGC that your QDRO is qualified. Keep the confirmation in your files.
Do you have additional questions or need additional resources?
This guide is focused on the steps necessary to have your QDRO qualified by PBGC. If you have questions about QDROs generally or want more detailed information, QDROs | U.S. Department of Labor may be a useful resource.