Dividing a Defined Benefit Plan in Divorce
If you or your spouse are participants in the Board of Trustees of the Teamsters No. 35 Pension Plan and going through a divorce, you’ll need a Qualified Domestic Relations Order (QDRO) to properly divide the retirement benefits. This is a defined benefit plan, meaning it typically pays out a monthly pension benefit starting at retirement, rather than a lump sum account like a 401(k). That difference has big implications for how the benefit is valued and divided in divorce.
At PeacockQDROs, we’ve handled thousands of QDROs, including complex union pension plans like this one. We know what information you need, what mistakes to avoid, and how to get your order approved and processed quickly and correctly.
Let’s walk through the key issues and plan-specific considerations when dividing the Board of Trustees of the Teamsters No. 35 Pension Plan in a divorce.
Plan-Specific Details for the Board of Trustees of the Teamsters No. 35 Pension Plan
- Plan Name: Board of Trustees of the Teamsters No. 35 Pension Plan
- Sponsor: Unknown sponsor
- Plan Type: Defined Benefit Plan
- Industry: General Business
- Organization Type: Business Entity
- Address: 620 US HIGHWAY 130, Effective Date: 1968-10-01
- Status: Active
- EIN: Unknown (required at the time of QDRO submission)
- Plan Number: Unknown (must be obtained and included in the QDRO)
This plan may be administered by a union-affiliated board or trust, which often means strict formatting and content rules for QDROs. That’s why it’s essential to match the required language and ensure accurate calculations.
Understanding Defined Benefit QDROs
Defined benefit plans provide monthly payments after retirement that are calculated based on a formula—usually incorporating years of service and average salary. In a divorce, the non-employee spouse (called the “Alternate Payee”) is usually awarded a portion of that monthly benefit through a QDRO.
Key Defined Benefit Issues in Division
- Employee Contributions: These may be returned if the participant leaves before vesting, or used in calculating benefits if they remain active. A QDRO should address what happens under both scenarios.
- Employer Contributions: These are usually not accessible in lump sum and are reflected in the final monthly benefit amount. The QDRO must reflect division of future pension payments, not present account values.
- Vesting Schedules: If the participant isn’t fully vested yet, the Alternate Payee may receive nothing unless the plan specifically allows otherwise. Always confirm vesting status early in the divorce process.
- Forfeited Benefits: If the participant leaves early, the plan may forfeit pension rights unless vested. The QDRO should include fallback provisions or “if, as, and when” language to protect the Alternate Payee’s rights.
- Survivor Benefits: Make sure to address whether the Alternate Payee will be entitled to a survivor benefit if the participant dies before or after retirement. Failing to do this can lead to loss of retirement income for the Alternate Payee.
Plan Loans and Their Impact on Division
If the participant has borrowed against their pension, that loan may reduce the monthly payout. Some defined benefit plans allow loans for hardship, others don’t—but if a loan does exist, the QDRO needs to clarify whether the Alternate Payee’s share will be reduced.
Pro Tip: Don’t assume any existing loan gets “repaid” or canceled at retirement. Loan balances can impact benefit calculations for both parties. Always request a Pension Benefit Statement to confirm whether a loan exists before drafting the QDRO.
Roth vs. Traditional Considerations
While Roth accounts are more common in 401(k)s and other defined contribution plans, they may come into play in hybrid union-related plans that include a supplemental retirement account. If this plan contains any voluntary contributions with Roth or after-tax features, you’ll want to ensure your QDRO specifies tax treatment.
In traditional defined benefit pensions like the Board of Trustees of the Teamsters No. 35 Pension Plan, it’s more common for benefits to be taxable at ordinary income rates when received. The QDRO should always include whom the taxes are attributable to—usually the party receiving the recurring payments.
QDRO Drafting: What Needs to Be in the Order?
A court order must meet IRS and plan-specific requirements to be a valid QDRO. For the Board of Trustees of the Teamsters No. 35 Pension Plan, here’s what should be included:
- Full legal names and addresses of both parties
- EIN and plan number (must be retrieved from plan administrator or summary plan description)
- Allocation method (e.g., 50% of marital portion using time rule formula)
- Language on timing of benefits—usually “when participant reaches earliest retirement age”
- Clear details on survivor benefit entitlements
- Discussion of pre-retirement death scenarios
- How loan balances, early retirement adjustments, or forfeitures may impact payable benefits
Every defined benefit plan has quirks. Missing a mandatory clause—like how benefits are handled if the participant dies before retirement—can cause the QDRO to be rejected. That’s why working with experts like PeacockQDROs is so important.
What the Plan Administrator Needs
Administrators for union-related plans like this one tend to be strict. Some plans require a draft QDRO be submitted for preapproval before filing in court. Others will only review it after court entry. Either way, it pays to get it right the first time:
- Get a Plan Description: Request the Summary Plan Description (SPD) and QDRO procedures. These documents have essential requirements.
- Contact the Plan: Since no EIN or plan number is listed, someone (usually the participant) must ask the plan administrator for the official documentation.
For more on this process, check out our article on timelines for QDRO approval.
Common Mistakes to Avoid
Dividing defined benefit plans is tricky. Check out this list of common QDRO drafting mistakes, so you don’t find yourself back in court with a rejected order.
- Using a dollar amount for a defined benefit plan—this rarely works with long-term pensions.
- Leaving out survivor benefit language—meaning the Alternate Payee loses payments if the participant dies early.
- Failing to clearly define the marital coverture formula timelines.
Why Work with PeacockQDROs?
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. When you’re dividing something as vital as pension benefits, you want experienced guidance from QDRO attorneys who know the details—and the pitfalls.
To learn more, see our full QDRO process here, or contact us directly if you’re ready to get started.
Final Thoughts
The Board of Trustees of the Teamsters No. 35 Pension Plan presents several special challenges when dividing in a divorce. It’s a defined benefit plan from an unknown sponsor in the General Business sector, meaning you’ll need to track down important information before drafting the QDRO. These pensions are usually paid out monthly, are subject to vesting rules, and may include hidden issues like unpaid loans or missing survivor benefits.
If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the Board of Trustees of the Teamsters No. 35 Pension Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.