Can I QDRO more than 50% of my Pension plan?


#1

My husband waited until the house was paid off and asked for a divorce. During the almost 14 years of our marriage he only paid into a 401K for the past 5 years. I was a regular employee and had a pension plan that started 5 years before my marriage, as well as a 401k that started approx. 3 months after we got married.
Payments into the pension plan ceased about 3 years ago, and there won’t be much growth to the lump sum amount by the time the pension will be paid out. Since I paid into a 401k while my husband decided not to pay into any kind of retirement plan until 5 years ago when he was hired full time, he is now eligible to half of my pension as well as half of my 401k (minus the difference of what he has in his).
When we calculated the ‘retirment benefits’ (50/50 split of pension and 401k) we came very close to the amount of my pension and I would rather QDRO the pension instead of having to QDRO my pension and, in addition to that, QDRO the 401k. My husband said that according to NC law a Pension plan can never be QDROed to more than 50% of the benefits. Is this a correct statement?


#2

Each plan has a different set of rules related to division. I would suggest you contact the plan administrator for information regarding the split.