RPA 1 (New Curriculum) Directing Retirement Plans 1: Assignment 1

Define PBGC - Pension Benefit Guaranty Corporation (Single-employer plan termination insurance) - Federal governmental agency created under Title IV of ERISA. Purpose is to encourage the continuation and maintenance of voluntary private pension plans for participants, provide for timely/uninterrupted payment of pension benefits and beneficiaries under all insures plans & maintain premiums at lowest level consistent with carrying out statutory obligations. Define QDRO - Qualified Domestic Relations Order - a domestic relations order that satisfies all of the following requirements: 1. Creates/recognizes the existence of an alternate payee's (spouse, former spouse, child or other dependent) right to, or assign to an alternate payee the right to receive all or a portion of the benefit payable with respect to a participant under the plan 2. It must clearly specify certain facts about the participant's benefits (name, last known mailing address of participant and each alternate payee covered by the order; the amount/percent of the participant's benefits to be paid by the plan, or the manner in which such amount is to be determined; the number of payments/periods to which such an order applies; and each plan to which such an order applies 3. It must not alter the amount/form of benefits. QDRO cannot require the plan to provide (a) any type or form or benefit/option, not otherwise provided under the plan; (b) (Actuarially increased benefits; or (c) payment of benefits to an alternate payee when such benefits are already required to be paid to another alternate payee under another order previously determined to be a QDRO Do an individual's financial needs decrease after retirement? Is this a valid assumption? - Somewhat. The retiree doesn't have dependents and homes/furnishings/possessions have usually been paid off. But the decrease is overstated because ones standard of living does not significantly change after retirement. Increasingly, retirees are more active (social, travel, recreational activities) and urbanization, geographic mobility, demographics and changing culture minimizes parents moving in with kids.