How Do I Notify You of My Divorce?
Please print this page for your attorney to review.
If you're going through a divorce, you'll need to provide MSRP with the information below to manage your deferred compensation account.
The Domestic Relations Order (DRO) from your divorce gives MSRP instructions on how your account may be divided with your ex-spouse (or other permitted alternate payee). In order for MSRP to process a DRO, it must be approved (qualified) by MSRP in accordance with the requirements of the Internal Revenue Code and the policies and procedures established by MSRP for DROs. The Plans are generally not subject to ERISA.
Prior to filing a DRO with a court, participants and alternate payees should submit a proposed DRO for qualification by MSRP at the following address:
Nationwide Retirement Solutions
P.O. Box 182797
Columbus, OH 43218-2797
A sample form of DRO acceptable to MSRP is available for use in drafting your DRO upon request. Please contact MSRP to obtain this form.
A copy of the DRO certified by the court is required for MSRP to process an account segregation.
Qualification of a DRO
To be qualified, a DRO must:
- Be directed to the deferred compensation plan (e.g., the 401(k) Savings and Investment Plan, 457 Deferred Compensation Plan, 403(b) Tax Sheltered Annuity Plan and/or 401(a) Match Plan) and not the administrator (e.g., MSRP or Nationwide)
- State the amount of benefits (percentage, dollar amount or a combination of both) that is to be paid to the alternate payee, including whether the amount awarded includes earnings, losses and expenses attributable to that amount and whether any outstanding loan balance will be included in the participant’s account balance for purposes of determining a percentage set aside. (If not specified, earnings, losses and expenses will not be included, and outstanding loan balances will not be included.);
- Please note that although outstanding loan balances can be included in determining the account balance to be divided, the outstanding loan cannot be transferred or segregated. As such, segregation may not be pro rata among investments.
- The order must specify how the account assets are to be segregated (e.g. pro rata).
- Specify an effective date for the determination of benefits to be segregated for the alternate payee;
- Specify the names, date(s) of birth, last known addresses and Social Security numbers for the participant and the alternate payee, provided that dates of birth and Social Security numbers may be included in the letter transmitting the DRO to the Plans rather than the DRO itself;
- Ensure that no actions are to be taken by the plan which are inconsistent with the plan document;
- Ensure no form of payment to the alternate payee that is not permitted by the plan;
- Ensure that no prior domestic relations orders specify payment to a different alternate payee;
A hold may be placed on the money in your account while the DRO is being qualified and processed. The hold generally will not last longer than 18 months after you initially submit the DRO to MSRP for qualification. Once the DRO is qualified, a new account will be created for the alternate payee, and the assigned value will be transferred to that account.
Beneficiary changes are not effectuated by a DRO. The participant should make any necessary beneficiary changes on his or her account.
Get the help you need
Talk with a Team MSRP representative for more information.