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The Pension Benefit Guaranty Corporation (PBGC) insures many private-sector defined-benefit pension plans, but it does not cover defined-contribution plans such as 401(k)s. The PBGC is largely funded by premiums paid by defined-benefit plan sponsors. The PBGC covers both single-employer plans and multiemployer plans.
Calculate the amount payable to the alternate payee established by the QDRO. Subtract the amount owed to the alternate payee from the participant's total accrued retirement benefit and multiply it by the early retirement factor (ERF).
Depending upon the QDRO language, the alternate payee may receive increases to the extent the participant receives them. These increases are divided and applied to the separate interest according to the QDRO.
A separate interest QDRO allows the alternate payee to receive his or her allocated share of the participant's benefit in the form of a single life annuity, which the QDRO may allow the alternate payee to commence at any time after the participant is entitled to receive a pension benefit under the Plan.
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