The Department of Labor has finalized its regulations on "domestic relations orders" (DROs).  The regulations, originally issued in 2007, were required under the PPA to clarify certain issues relating to the timing and order of issuing DROs under ERISA and the Code.  The final regulations are effective August 9, 2010. 

The good news is that the regulations rely heavily on examples to illustrate general principles which can make the regulations easier to understand.  But the bad news is that the DOL makes it very clear that the examples are not intended to represent the only circumstances to which the general principles apply.  A couple of the key provisions:

• Subsequent DROs.  The regulations confirm that a DRO won’t fail to be a QDRO solely because it is issued after, or revises, another order.  For example, a second order involving the same parties is issued that reduces the benefit awarded in the first order.  The final regulations clarify that the result would be unchanged if the second order increased the benefit.
• Timing of DROs.  The regulations clarify the principle that a DRO won’t fail to be a QDRO solely because of the timing of when it was issued.   For example A DRO can still be a QDRO if it is an order issued after the death of the participant or an order issued after the parties’ divorce.

While the DOL clarifications are useful, they don't significantly deviate from original narrow guidelines and while helpful, the examples don't necessarily make any significant changes to the administration of DROs and QDROs.  A complete text of the regulations are available here.  If nothing else, it will give benefits and matrimonial attorneys something in common to discuss.  For more information, please contact your attorney at Fox Rothschild.