Introduction
Dividing retirement assets like pensions during divorce can be confusing, especially when one spouse has a defined benefit plan such as the Sanford Health Employees’ Pension Plan. To receive your share of this plan, a Qualified Domestic Relations Order (QDRO) is typically required. At PeacockQDROs, we’ve helped thousands of individuals go through this process—from start to finish—with less stress and no guesswork. This article walks you through everything you need to know when a Sanford Health Employees’ Pension Plan is on the table in your divorce.
Plan-Specific Details for the Sanford Health Employees’ Pension Plan
Before preparing a QDRO, it’s important to understand the specific characteristics of the plan you’re dividing. Here’s what we know about the Sanford Health Employees’ Pension Plan:
- Plan Name: Sanford Health Employees’ Pension Plan
- Sponsor: Unknown sponsor
- Address: 1305 W 18TH ST
- Plan Number: Unknown
- EIN: Unknown
- Plan Type: Defined Benefit Plan
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Effective Date: Unknown
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Assets: Unknown
While exact numbers and more granular breakdowns are missing from public data, this still gives us a starting point to prepare a QDRO that protects your future benefits.
Why You Need a QDRO for This Pension Plan
The Sanford Health Employees’ Pension Plan is a defined benefit plan, which means it provides a fixed monthly benefit at retirement, based on salary and years of service. If you’re an alternate payee (usually the ex-spouse of the employee), the only legal way to receive part of these future payments is through a court-approved Qualified Domestic Relations Order.
How a QDRO Works for Defined Benefit Plans
Unlike 401(k) plans, defined benefit plans like the Sanford Health Employees’ Pension Plan don’t have a current balance to divide. Instead, future monthly pension payouts are split according to specific language in the QDRO. Here’s how QDROs typically work with this type of plan:
- Formula-Based Division: Most plan administrators prefer the “coverture formula,” in which the alternate payee’s share is based on the proportion of the employee’s service during the marriage versus total service at retirement.
- Survivor Benefits: A QDRO should clarify whether the alternate payee will receive survivor benefits after the participant’s death. This must be negotiated and documented clearly.
- Commencement Age: QDROs can allow the alternate payee to start benefits as early as the participant qualifies, even if they haven’t yet retired.
Common Issues to Address in the Sanford Health Employees’ Pension Plan QDRO
Unvested Employer Contributions and Forfeitures
If the employee is not fully vested in the pension benefits at the time of divorce, the QDRO must address how any future forfeitures or increases in benefits will impact the alternate payee’s portion. Some plans only recognize vested amounts as divisible property, but a well-drafted QDRO can potentially protect post-divorce accruals related to marital service.
Loan Balances and Repayment
Although defined benefit plans rarely allow loans, if the Sanford Health Employees’ Pension Plan has been modified to include any loan features or advances, the QDRO must specify how loans affect the total marital benefit. Typically, loans reduce the divisible amount unless addressed in your order.
Traditional vs. Roth Plans
While most defined benefit plans don’t include Roth components, it’s worth confirming whether any hybrid elements exist. If Roth-type contributions (after-tax) were added, the QDRO should handle tax liability appropriately. Generally, defined benefit payouts are fully taxable as income unless otherwise structured.
QDRO Process for the Sanford Health Employees’ Pension Plan
Here’s what the general process looks like when dividing the Sanford Health Employees’ Pension Plan:
- Step 1: Gather plan details including the Summary Plan Description (SPD). Since the EIN and plan number are unknown, these items must be requested from the plan administrator.
- Step 2: Draft the QDRO with language accepted by the plan. Getting pre-approval, if the plan allows it, can save weeks of corrections later.
- Step 3: Get the order signed by the family court judge in your jurisdiction.
- Step 4: Submit the signed order to the plan administrator for approval and processing.
- Step 5: Follow up until you receive written confirmation that the order is accepted and on file.
At PeacockQDROs, we don’t stop at drafting. We handle preapproval, court filing, document submission, and administrator follow-up. That’s what sets us apart from firms that only prepare your QDRO and leave you to manage the rest.
What the Sanford Health Employees’ Pension Plan Administrator Needs
Because this plan’s EIN and plan number are currently unknown, it’s particularly important to include sufficient identifying information, such as:
- Full legal name of the plan: Sanford Health Employees’ Pension Plan
- Name and address of the sponsor: Unknown sponsor, 1305 W 18TH ST
- Participant’s full name and date of birth
- Alternate payee’s full name and date of birth
- Social Security Numbers (provided confidentially)
Failing to include required identifiers can delay or invalidate your QDRO, so work with a professional to get it done right the first time.
Plan Limitations You’ll Want to Watch For
Early Retirement Adjustments
Defined benefit plans often reduce benefits for early retirement. Your QDRO should say whether the alternate payee can retire early independently and how their benefits will be calculated if they do.
Cost-of-Living Adjustments (COLA)
Some plans provide annual increases. If applicable to the Sanford Health Employees’ Pension Plan, be sure your order specifies whether the alternate payee receives a share of COLAs.
Post-Retirement Benefit Elections
Once the employee retires and elects how to receive their pension (e.g., life-only or joint survivor), those choices can affect the alternate payee. A QDRO should freeze benefit elections or provide mechanisms for fair sharing.
Avoiding Costly Mistakes
We’ve seen many avoidable issues with poorly written QDROs. Common problems include:
- Not accounting for vesting rules
- Leaving out clear instructions on survivor benefits
- Using outdated templates not accepted by the plan
To avoid these issues, check out our article on common QDRO mistakes.
How Long Will the QDRO Take?
The timeline varies depending on court schedules and the plan administrator’s review process. If you’re wondering what to expect, take a look at our breakdown of the 5 factors that determine how long it takes to get a QDRO done.
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 hand it off to you—we handle the entire process. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Visit our QDRO services page or contact us today to learn how we can help with your Sanford Health Employees’ Pension Plan division.
Important Final Note for Certain States
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 Sanford Health Employees’ 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.