Model QDRO - Towers Watson

Transcription

Model QDRO(Shared Payment)The use of this Model is appropriate for Participants who are currently in receiptof benefit payments from one of the following plans:FCA US LLC – UAW Pension PlanFCA US LLC—SPFPA Pension PlanFCA US LLC—IUE Pension AgreementAmerican Motors—Union Retirement Income PlanJeep Corporation—UAW Retirement Income PlanNOTE: If the Participant is receiving a benefit from more than one Plan and the intent isto award the Alternate Payee a portion of each Plan, it is strongly recommended that aseparate QDRO be submitted for each Plan, as the respective Plan terms vary and thePlan benefits are administered separatelyThe division of retirement benefits involves many complex tax and legalissues. FCA US LLC strongly recommends that individuals seek the adviceof legal counsel or other qualified experts before drafting an order for thedivision of benefits.The following is intended as general information only. It should not be reliedupon by any party as the sole method of dividing retirement benefits underthis plan, nor is this model intended as legal advice.DB Model QDROShared Payment1

ATTORNEY NAMELAW FIRMADDRESSCITY/STATE/ZIPTELEPHONE NUMBERATTORNEYS FOR)))))v.))[NAME OF PARTY])Defendant/Respondent )[NAME OF PARTY]Plaintiff/Petitioner,CASE NO:QUALIFIED DOMESTIC RELATIONS ORDERWHEREAS, the parties were married to each other on and wereseparated on and divorced on ; andWHEREAS, this Court has personal jurisdiction over both parties and jurisdictionover the subject matter of this Order; andWHEREAS, this Order is granted in accordance with the domestic relations lawsof the state of ; andWHEREAS, the parties and the Court intend that this Order shall be a qualifieddomestic relations order (“QDRO”), as defined in Section 414(p) of the InternalRevenue Code of 1986, as amended (“the Code”)and Section 206(d) of theEmployee Retirement Income Security Act of 1974, as amended (“ERISA”); andWHEREAS, the parties have stipulated that the Court shall enter this Order;NOW IT IS ORDERED AND ADJUDGED AS FOLLOWS:DB Model QDROShared Payment2

1. DEFINITIONSAs used in the Order, the following terms shall apply:a. The Participant shall mean , whose last known orcurrent address is . TheParticipant is currently receiving a monthly benefit from the Plan.b. The Alternate Payee shall mean , whose last knownor current address is . The AlternatePayee is the [Insert: spouse OR former spouse] ofthe Participant.c. The Plan shall mean the [Insert:applicable Plan name].d. The Plan Administrator shall mean the FCA US LLC Employee BenefitsCommittee.2. ALTERNATE PAYEE’S AWARDThe Alternate Payee is awarded [Insert: either % or ] from each monthly payment that the Participant receives,which includes any early retirement subsidy, supplement or separationprogram benefit that the Participant receives.3. DISTRIBUTION AND FORM OF PAYMENTThe Alternate Payee shall commence his or her benefits under the Plan assoon as administratively practicable following the Plan’s qualification of thisDB Model QDROShared Payment3

Order as a QDRO. The Alternate Payee’s payment effective date shall be theearlier of the date the Plan began segregating the Alternate Payee’s portion ofthe benefit, if applicable, or the next administratively practicable payment datefollowing the qualification of this Order. The Alternate Payee shall receive hisor her benefits in accordance with the form of benefit received by the Participantand shall not be permitted to make an independent election related to the formof benefit or timing of commencement.4. DEATH OF THE PARTICIPANTa. If the Participant predeceases the Alternate Payee, payments made to theAlternate Payee pursuant to this Order shall cease. The Participant’s formof benefit elected, subject to Section 4.b. below, if applicable, will determinewhether any further payments will be made to any party, including theAlternate Payee.b. If the Participant elected a form of benefit payment with a surviving spouseoption and named the Alternate payee as the survivor, and if under theterms of the Plan the Participant is eligible to cancel the surviving spouseoption upon divorce, then (select one):upon qualification of this Order, the Participant may elect to cancel thesurviving spouse option and the Alternate Payee’s benefit will end uponthe Participant’s death, or the Alternate Payee’s own death, if earlier.the Participant may not elect to cancel the surviving spouse option. TheAlternate Payee’s benefit under the surviving spouse option will beginupon the Participant’s death.DB Model QDROShared Payment4

Section 4.c is applicable to Jeep-UAW participants Only – WhoCommenced Prior to September 4, 1990c. If the Participant is in the Jeep Corporation – UAW Retirement Income Planand commenced benefit payments prior to September 4, 1990, the AlternatePayee [Insert: will OR will not] be the Participant’s designated beneficiaryfor the lump sum benefits under the Plan. If the Alternate Payee is thedesignated beneficiary the designation is made with respect to [Insert: “theentire amount of the death benefit” OR “the same proportion asawarded to the Alternate Payee in Section 2.”]5. DEATH OF THE ALTERNATE PAYEEIf Alternate Payee predeceases Participant, the Alternate Payee’s portion ofParticipant’s benefits, as stipulated herein, shall revert to the Participant.6. ADDITIONAL BENEFITSa. The Alternate Payee [Insert: shall OR shall not] receive aproportionate share of any cost-of-living (“COLA”) or any post retirementeconomic improvement or adjustment made to the Participant’s benefit aftercommencement.7. For purposes of Sections 402 and 72 of the Code, any Alternate Payee who isthe spouse or former spouse of the Participant shall be treated as thedistributee of any distribution or payments made to the Alternate Payee underthe terms of the order and, as such, will be required to pay the appropriatefederal, state, and local income taxes on such distributions.8. The parties shall cause a copy of this Order to be served on the PlanAdministrator for the Plan forthwith. This Order shall remain in effect untilfurther order of this Court or its terms and/or obligations have been dischargedby the distribution of benefits from the Plan.DB Model QDROShared Payment5

9. Nothing contained in this Order shall be construed to require the Plan or PlanAdministrator to:a.Provide to the Alternate Payee any type or form of benefit or any optionnot otherwise available to the Participant under the Plan;b.To provide to the Alternate Payee increased benefits (determined onthe basis of actuarial value); andc.To pay any benefits to the Alternate Payee that are required to be paidto another alternate payee under another order previously determinedby the Plan Administrator to be a QDRO.10.In the event the Plan Administrator of the Plan does not approve the form ofthis Order, then each party shall cooperate and do all things reasonablynecessary to devise a form of Order acceptable to the Plan Administrator.11. To the extent that the Trustee of the Plan erroneously pays to the Participantany benefits that are payable to the Alternate Payee under this Order, theParticipant shall be deemed to be a trustee holding the amount of suchbenefits in a constructive trust for the benefit of the Alternate Payee. TheParticipant is ordered to pay such amount to the Alternate Payee within fivedays after [he or she] receives such amount.12. To the extent that the Trustee of the Plan erroneously pays to the AlternatePayee any benefits that are payable to the Participant under this Order, theAlternate Payee shall be deemed to be a trustee holding the amount of suchbenefits in a constructive trust for the benefit of the Participant. The AlternatePayee is ordered to pay such amount to the Participant within five days after[he or she] receives such amount.DB Model QDROShared Payment6

13. The Court retains jurisdiction to enforce, revise, modify or amend this Orderinsofar as necessary to establish or maintain its qualification as a QDRO or toamend this Order for other reasons, provided, however, neither this Order norany subsequent revision, modification, or amendment shall require the Plan toprovide any benefit not otherwise provided by the Plan.IT IS HEREBY ORDERED:Executed on:JudgeAPPROVED AS TO FORM AND CONTENT:By:ParticipantDate:By:Attorney for ParticipantDate:By:Alternate PayeeDate:By:Attorney for Alternate PayeeDate:DB Model QDROShared Payment7

ADDENDUMThis Addendum shall not be filed with the Court, but MUST be submitted alongwith the QDRO to:Willis Towers WatsonQDRO Service CenterP.O. Box 712728Los Angeles, CA 90071Attn: FCA QDRO TeamThe complete Social Security Numbers for both the Participant and AlternatePayee MUST be provided below for identification and implementation purposes.Participant’s InformationParticipant’s Attorney InformationName:Address:Name:Law Firm:Address:Date of Birth:Phone Number:Phone Number:Email Address:Social Security Number:Alternate Payee’s InformationAlternate Payee’s Attorney InformationName:Address:Name:Law Firm:Address:Date of Birth:Phone Number:Phone Number:Email Address:Social Security Number:DB Model QDROShared Payment8

DB Model QDRO Shared Payment 8 ADDENDUM This Addendum shall not be filed with the Court, but MUST be submitted along with the QDRO to: Willis Towers Watson QDRO Service Center P.O. Box 712728 Los Angeles, CA 90071 Attn: FCA QDRO Team The complete Social Security Numbers for both the Participant and Alternate