A qualified domestic relations order (QDRO) is a court order that creates a right for a person other than the member, called an “alternate payee,” to receive all or a portion of your retirement plan benefit to divide marital property or provide child support. An alternate payee must be your spouse, former spouse, child, or other eligible dependent. Typically, QDROs are used to divide property between an ex-spouse during a divorce.
Continue reading below to find how to submit a QDRO, answers to frequently asked questions, and other resources.
How-To
The AJRS Board of Trustees adopted a uniform model QDRO that can be downloaded for your use. This model QDRO contains instructions for you or your attorney to follow.
It is important to follow the instructions in the model QDRO because if the model is not substantially followed, AJRS will reject the QDRO and you will have to get a new QDRO signed by the judge that can be accepted by AJRS. To help you with any concerns before submitting a proposed QDRO for the judge’s signature, you can ask AJRS to assist you with questions about your benefits and/or the application of the QDRO to your benefit.
Once the QDRO is signed by the judge, you, the alternate payee, or an attorney representing either of you can submit the QDRO to AJRS. Please make sure the QDRO is filed with AJRS to avoid a disruption in administration of the benefits as ordered in the QDRO. The alternate payee is responsible for informing AJRS of any change in their address.
Submission:
You can submit a QDRO in the following ways:
| Method | Where |
|---|---|
| By mail | AJRS 124 W Capitol Ave. Ste 400 Little Rock, AR 72202 |
| In person | AJRS 124 W Capitol Ave 4th Floor Little Rock, AR 72202 |
Frequently Asked Questions
Where do I get a model QDRO?
Can I get an estimate of the monthly benefit to the alternate payee?
- AJRS can provide an estimate of benefits under a proposed QDRO to the member.
- If the member signs a notarized release of their member information, then the alternate payee or the alternate payee’s attorney may receive an estimate of benefits.
When can my alternate payee begin receiving payments?
The QDRO will specify when benefit payments to the alternate payee begin.
If you are not yet retired, then either:
- Upon the date you retire and begin receiving a monthly retirement benefit, or
- Upon your request to receive a refund of your contributions, which is only available if you cease to be a member of AJRS.
- If you are already retired, monthly benefits to the alternate payee begin the month following the date we approve the order.
What happens under a QDRO if the member was contributory and asks for a refund of their contributions?
- A contributory member can only get a refund of contributions after they terminate employment.
- A contributory member who receives a refund of contributions also forfeits their monthly benefit, and the alternate payee won’t receive a benefit, either.
- Alternate payees may be entitled to a portion of refunded contributions if ordered in the QDRO.
What happens if either party dies before receiving a monthly benefit from AJRS?
- If the member dies before retirement, the alternate payee will not receive a monthly benefit but can receive a refund of member contributions. The QDRO will specify whether the alternate payee receives a percentage or a set dollar amount of your contributions.
- If the alternate payee dies before receiving any benefit or payment, the entire amount that may have been due to the alternate payee reverts to the member.
Am I required to submit a copy of my divorce decree or other settlement agreement to AJRS?
No. Only a QDRO, signed by the judge, can be administered by AJRS to divide your retirement benefit.
Do I have to use the AJRS QDRO model to divide my benefits?
- Yes. This QDRO model is adopted by the board and approved by the Arkansas General Assembly and cannot be substantially modified.
What happens when the AJRS receives the QDRO?
- If the member is not or was not vested for future benefits on the divorce date, AJRS will notify the member and the alternate payee that there are no benefits to divide and the QDRO is rejected by AJRS.
- If a member is vested and corrections to the QDRO need to be made, a letter will be sent outlining those corrections.
- If the QDRO qualifies, it will be filed and administered by AJRS according to the QDRO.
How is the Benefit Payment determined under QDRO?
- The parties to the QDRO agree whether the monthly benefit is drawn during the member’s lifetime or the alternate payee’s lifetime.
- The parties to the QDRO agree whether the alternate payee will receive a percentage of the member’s benefit or a specific dollar amount.
- The estimate for the member is prepared using the current benefit formula, service only accrued during the dates of the marriage, and the member’s salary projected through the date of divorce.