Money Purchase Plans contain individual participant accounts, but they are technically determined to be a defined benefit plan. This is because these plans have defined formulas for determining the participant’s benefits that guarantee a specified and predetermined level of contributions each year which generate interest and earnings. These plans look like a traditional defined contribution plan because individual accounts are created for each participant

Instructions for Preparing Agreement Language

ATTENTION: In the following Model Separation Agreement, the Plaintiff is the Participant and the Defendant is the Alternate Payee. (You must insert the correct designations - Example: Plaintiff, Petitioner, Complainant, Defendant or Respondent). There are 4 model clauses in total.

View Sample Defined Benefit (Money Purchase) Agreement Language (PDF)

Retirement Benefits of Plaintiff

Plaintiff is a Participant under the [Insert Exact Name of Plan] (hereinafter referred to as Plan). Through a Qualified Domestic Relations Order “QDRO”, Defendant is hereby granted a portion of the Plaintiff’s retirement benefits under the Plan as specified below.

AMOUNT OF AWARD (Clause #1)

If a PERCENT AMOUNT is being Awarded (choose an option)

Option 1: Percent

Amount of Defendant’s Benefit: The Defendant will be assigned an amount equal to [Insert % Amount] Percent of the Plaintiff’s Total Account Balance accumulated under the Plan

(choose either A, B, C, or D)

A. - as of [insert the Marriage End Date].
B. - as of [insert a Specific Date].
C. – from [insert the Date the Plaintiff started participating in the Plan] to [insert the Marriage End Date].
D. – from [insert the Marriage Date] to [insert the Marriage End Date].

Option 2: Percent PLUS a Dollar Amount

Amount of Defendant’s Benefit: The Defendant will be assigned an amount equal to [Insert % Amount] Percent of the Plaintiff’s Total Account Balance accumulated under the Plan

(choose either A, B, C, or D)

A. - as of [insert the Marriage End Date] PLUS [Insert $ Amount].
B. - as of [insert a Specific Date] PLUS [Insert $ Amount].
C. – from [insert the Date the Plaintiff started participating in the Plan] to [insert the Marriage End Date] PLUS [Insert $ Amount].
D. – from [insert the Marriage Date] to [insert the Marriage End Date] PLUS [Insert $ Amount].

Option 3: Percent MINUS a Dollar Amount

Amount of Defendant’s Benefit: The Defendant will be assigned an amount equal to [Insert % Amount] Percent of the Plaintiff’s Total Account Balance accumulated under the Plan

(choose either A, B, C, or D)

A. - as of [insert the Marriage End Date] MINUS [Insert $ Amount].
B. - as of [insert a Specific Date] MINUS [Insert $ Amount].
C. – from [insert the Date the Plaintiff started participating in the Plan] to [insert the Marriage End Date] MINUS [Insert $ Amount].
D. – from [insert the Marriage Date] to [insert the Marriage End Date] MINUS [Insert $ Amount].

Option 4: Percent AFTER a Dollar Amount is Deducted

Amount of Defendant’s Benefit: After deducting [Insert $ Amount] from Defendant’s Total Account Balance accumulated under the Plan

(choose either A, B, C, or D)

A. - as of [insert the Marriage End Date] the QDRO shall assign to the Defendant an amount equal to [Insert % Amount] Percent of the Plaintiff’s remaining Total Account Balance.
B. - as of [insert a Specific Date] the QDRO shall assign to the Defendant an amount equal to [Insert % Amount] Percent of the Plaintiff’s remaining Total Account Balance.
C. – from [insert the Date the Plaintiff started participating in the Plan] to [insert the Marriage End Date] the QDRO shall assign to the Defendant an amount equal to [Insert % Amount] Percent of the Plaintiff’s remaining Total Account Balance.
D. – from [insert the Marriage Date] to [insert the Marriage End Date] the QDRO shall assign to the Defendant an amount equal to [Insert % Amount] Percent of the Plaintiff’s remaining Total Account Balance.

If a DOLLAR AMOUNT is being Awarded

Amount of Defendant’s Benefit: The Defendant will be assigned an amount equal to [Insert $ Amount] of the Plaintiff’s Total Account Balance accumulated under the Plan

(choose either A, B, or C)

A. - as of [insert the Marriage End Date].
B. - as of [insert a Specific Date].
C. – as of the Date the dollar amount is segregated from the Plaintiff’s account.

INVESTMENT EARNINGS (Clause #2)

Investment Earnings: The Defendant’s assigned share of the benefits as set forth above SHALL [insert either ALSO or NOT] bear any interest and investment earnings or losses attributable thereon for periods subsequent to the "Assignment Date," or the closest Plan valuation date thereto, until the date the Plan actually establishes a separate account(s) for the Defendant (the "Segregation Date").

PLAN ADMINISTRATOR FEES (Clause #3)

Plan Administrator Fees: Any QDRO processing or reviewing fees charged by the Plan Administrator shall be deducted

(choose either A, B, or C)

A. - equally from Defendant’s and Plaintiff’s share of the retirement benefits.
B. - from Defendant’s share of the retirement benefits.
C. - from Plaintiff’s share of the retirement benefits.

PROCESSING QDRO (Clause #4)

Processing The Qualified Domestic Relations Order: Defendant’s Attorney will be responsible of preparing, submitting and overseeing the approval of the QDRO until its final acceptance by the plan administrator as a QDRO. It is understood that Defendant’s Attorney may employ a QDRO drafting company to assist in the preparation and submission of the Order to the plan administrator for approval as a QDRO.