Why are we writing about UPS QDROs on a site devoted to all things Internet? And just what is a QDRO? The answer to the first question is because people are searching for the UPS model QDRO (also the Central States model QDRO as it relates to UPS) online, and it’s crazy that such a standard form isn’t readily available on the Internet, so we decided to make it so!
QDRO stands for “Qualified Domestic Relations Order”, and a QDRO is typically used to divide a retirement benefit (such as a pension) so that after a divorce the benefit administrator sends part of the pension payments to the person who earned the pension, and part of the payments to their (ex) spouse, assuming that the ex is entitled to a share of the benefits.
Typically, if the benefit was earned during the marriage, the other spouse will be entitled to some portion of the benefit payout, and that’s where the QDRO comes in. The QDRO orders the benefit administrator to divide the benefit payments between the parties, and to send each party the payments to which they are entitled under the benefit.
QDROs are notoriously complicated, in large part because each individual pension and other retirement plan has their own requirements as to what needs to be in a QDRO directed to them. This is why many places provide a model QDRO form, and UPS is no exception.
Now, you would think that given the presumably vast numbers of people retiring from UPS, that it would be in UPS’ own best interest to make their model QDROs (yes, plural – we’ll get to that) available online.
In fact, at one time that information was available online, at www.ibtupspensionfund.ups.com, however that website is no longer available (probably much to the frustration of QDRO attorneys and UPS retirees alike, as they search online trying to find the UPS QDRO forms and find articles mentioning that link, only to discover that the link is dead).
To understand all of this, it helps to understand the recent history of the UPS pension fund, the Central States pension fund, and their model QDROs.
The Central States pension fund used to be the primary pension fund for UPS drivers. Back in 2008, UPS pulled out of the Central States pension fund as part of a collective bargaining agreement with the IBT, and set up its own pension fund – the UPS/IBT pension plan (IBT stands for International Brotherhood of Teamsters).
As a result, some UPS retirees are covered by the Central States pension fund, and some are covered by a combination of the UPS/IBT fund, and the Central States fund.
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For UPS retirees who retired after 12/31/2007, their entire retirement benefits are paid out of the UPS/IBT pension fund. However, for those who retired on or before 12/31/2007, the way that works is that retiree benefits are paid by the UPS/IBT pension fund up until the retiree turns 65, at which point their benefits are paid out of the Central States pension fund.
So there needed to be two QDROs submitted whenever a pre-2008 UPS retiree got divorced and needed to have their pension benefits divided between themselves and their ex-spouse (also known as the “alternate payee”): one QDRO went to the UPS/IBT pension fund administrator, and one QDRO went to the Central States pension fund administrator.
This is how it was up until January 1, 2016.
Some time in 2015 the process was simplified, and the whole two-QDRO requirement went away. We don’t know whether this is why the www.ibtupspensionfund.ups.com site went away, but here is what we do know: starting on January 1, 2016, a new, unified QDRO replaced the requirement to submit a QDRO to each of UPS/IBT and Central States, and UPS/IBT took on the responsibility of providing Central States with the QDRO information for any retiree who had retired prior to January 1, 2008. And, as such, new model QDROs were promulgated.
Now, you would think that as large an employer as UPS would make their new model QDROs readily available and easily found online, if only because it makes their job so much easier. But, in the immortal words of Steve Martin, noooOOOOoooo.
So we are providing them below.
We would be remiss if we didn’t give a huge shout-out to Phil Phillips, from the Law Office of Philip D. Phillips in Texas, who helped us obtain the UPS model QDROs.
Below are the model QDROs both for full-time UPS employees who have not yet started receiving their UPS retirement benefits, and for UPS retirees who were full-time, and who have already started receiving their retirement benefits but who have not yet turned 65. We do not have the model QDRO form for UPS retirees who are age 65 or over.
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