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Fund Frequently Asked Questions
Divorce
  1. If I get divorced before retirement, can my former spouse receive any of my retirement savings?
  2. What if when I retire I name my spouse as my survivor, and then we get divorced?
  3. What is a Qualified Domestic Relations Order, or QDRO?
  4. How much money can my former spouse be awarded from my retirement account?
  5. When is the money available to my former spouse?
  6. When will the money be split?
  7. What is the procedure for getting a QDRO?
  8. Does the Retirement Fund have rules or forms for a QDRO?
  9. Who makes the rules for QDROs?
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1.  If I get divorced before retirement, can my former spouse receive any of my retirement savings?
A state court can divide your Fund accounts between you and your former spouse. See Qualified Domestic Relations Order procedures.
 
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2.  What if when I retire I name my spouse as my survivor, and then we get divorced?
Once an annuity option is selected and the first check has been cashed, the option cannot be changed or modified in any way. This includes changing the named survivor. If your named survivor is your ex-spouse, he/she still remains as your named survivor, and they will receive your Joint & Survivor annuity if you pre-decease them.
 
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3.  What is a Qualified Domestic Relations Order, or QDRO?
A QDRO is a court order in a divorce action telling the Fund that a portion of a participant's accounts are to be set aside for the former spouse.
 
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4.  How much money can my former spouse be awarded from my retirement account?
The amount depends upon what you and your former spouse negotiate, and what the court approves. In many cases, when there have been no other substantial assets and the couple was married the entire time the participant worked at the YMCA, the split has been 50-50.
 
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5.  When is the money available to my former spouse?
With the exception of the money in your YMCA Account, money awarded to your former spouse can be:
  • left in the Fund to earn interest
  • taken in cash, less Federal Income Tax
  • rolled over to an IRA or other employee pension plan

Your former spouse can begin receiving benefits from the YMCA Account when they reach age 55, or when you reach age 50, whichever happens first. The YMCA Account will continue to earn interest until benefits are paid to your former spouse.

 
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6.  When will the money be split?
The Fund checks the QDRO to see that it meets the requirements of both federal pension law and the Retirement Plan. If it does, both you and your former spouse are notified, usually within a week. About two weeks later, your former spouse will receive a letter indicating the options available (refunds, rollovers, and annuity). If the QDRO does not meet the requirements, the QDRO is returned for corrections and a hold is placed on your accounts, which means you will not be able to take a withdrawal or begin an annuity. This hold on your accounts will be in effect until the Fund receives a correct QDRO or for 18 months, whichever is less.
 
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7.  What is the procedure for getting a QDRO?
Usually you and your former spouse negotiate what part, if any, of your retirement accounts will be set aside for your former spouse. One of your lawyers will prepare a QDRO and submit it to the divorce court. Once approved, the lawyer sends a certified copy to the Fund. If it meets both federal pension law and the Retirement Plan requirements, both you and your former spouse are notified, as above in Question 5.
 
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8.  Does the Retirement Fund have rules or forms for a QDRO?
Yes. See the standard procedures and suggested wording. The Fund will also look over your draft QDROs to let you know if all requirements are met before you submit it. For more information, please call the Fund's Legal Department at 800-738-9622.
 
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9.  Who makes the rules for QDROs?
They are a combination of federal law and the YMCA Retirement Fund's Plan rules.

Federal law provides for the overall QDRO process, and standards for treatment for ex-spouses under pension plan rules. The Fund treats a former spouse like a participant who has left YMCA employment.

There are only two instances where federal rules are different:
  • A participant may begin an annuity at age 55. A former spouse may begin an annuity at age 55 or at the time the participant turns 50, whichever is earlier.
  • A former spouse may receive an annuity under any of the annuity options available to a participant, but may not take a joint & survivor annuity option with a new spouse.

 
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