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July 1, 2019 QDRO Rule Change

Q:  What is the change effective July 1, 2019?
Successor alternate payees, “a person or persons named in a domestic relations order to receive the amount payable to the former spouse under the QDRO if the alternate payee dies before the member”, are no longer allowed in qualified domestic orders on or after July 1st. If the alternate payee dies, prior to or after payment from the member's account, all funds will revert to the member. All successor alternate payee designations in Qualified Domestic Relations Orders prior to July 1, 2019 will be honored by IPERS.

Q: Does this change any existing QDRO that already includes Successor Alternate Payee language?
If your QDRO was qualified by IPERS prior to July 1st, 2019 and contains successor alternate payee provisions, IPERS will continue to administer this language.

Q:  What happens to the QDROs with Successor Alternate Payee provisions waiting on review?
IPERS will honor a filed, judge-signed, domestic relations order (as opposed to a draft) containing Successor Alternate Payee provisions, if

  1. It is received by IPERS by 6/30/2019,  and;
  2. The submission meets all other IPERS requirements and can be qualified as submitted.  

If the order needs any revision, it will be returned and the successor alternate payee language will need to be stricken. However, this does not relieve any party to the order to complete the qualification requirements set forth by Iowa law, Internal Revenue Service, and IPERS’ administrative rules.

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