Page 57 - HarborLight CU 2014-15 SPD
P. 57
The order must include the names and last known mailing addresses of the participant
and each alternate recipient. (In some cases, there will be several alternate recipients.) An order
may designate a guardian or other representative of an alternate recipient (for example, the
ex-spouse or other adult who cares for the minor child). However, the order may substitute the
name and mailing address of a state or political subdivision for the mailing address of an
alternative recipient.
Although the law requires the order to state the parties’ addresses, you may have
access to this information through other records. In practice, if a party’s address is the only
missing item from this checklist, and you have access to this information, you should not
disqualify an order.
4. Does the order provide a reasonable description of the coverage to be
provided?
The order must provide either: 1) a reasonable description of the type of coverage to be
provided by the plan to each such alternate recipient child, or 2) the manner in which the type of
coverage is to be determined.
To the extent the plan identified provides only one benefit option, this requirement is met.
An order would also satisfy this requirement by designating the alternate recipient child’s
coverage to be the same as the coverage elected each year by the participant/parent.
Current law states that the order applies to each plan which receives it. It is acceptable
for an order to refer to an outdated or informal plan name. The letter you send to the parties
regarding whether the order is a QMCSO should state the proper name of the plan(s) covered
by the order.
5. Does the order identify the period that it applies to?
The order does not need to include a specific ending date. For example, an acceptable
order might indicate that it expires for each child as they reach age 18 or upon the employee’s
ineligibility for coverage (if earlier). The time period during which the order is effective might also
be inferred from the context of the order. The NMSN clarifies that coverage under a QMCSO
need not continue beyond the age for which coverage is available for dependents generally.
____ 6. Is the child eligible for coverage under the plan?
The QMCSO rules may not override other plan provisions generally applicable to
dependent coverages. For example, a child may not qualify for coverage under the plan for a
number of reasons, including:
The employee is not eligible to participate in the plan (due to reduction in hours,
termination of employment, etc.).
The child does not meet the plan’s definition of “dependent child” because of age or
student status.
7. Does the order require the plan to provide benefits not available under the
plan?
The order may not require the plan to provide any type or form of benefit, or any option
not otherwise provided under the plan. For example, if the plan provides only medical benefits,
the order cannot require that the plan provide dental or vision benefits. Similarly, the order
52
and each alternate recipient. (In some cases, there will be several alternate recipients.) An order
may designate a guardian or other representative of an alternate recipient (for example, the
ex-spouse or other adult who cares for the minor child). However, the order may substitute the
name and mailing address of a state or political subdivision for the mailing address of an
alternative recipient.
Although the law requires the order to state the parties’ addresses, you may have
access to this information through other records. In practice, if a party’s address is the only
missing item from this checklist, and you have access to this information, you should not
disqualify an order.
4. Does the order provide a reasonable description of the coverage to be
provided?
The order must provide either: 1) a reasonable description of the type of coverage to be
provided by the plan to each such alternate recipient child, or 2) the manner in which the type of
coverage is to be determined.
To the extent the plan identified provides only one benefit option, this requirement is met.
An order would also satisfy this requirement by designating the alternate recipient child’s
coverage to be the same as the coverage elected each year by the participant/parent.
Current law states that the order applies to each plan which receives it. It is acceptable
for an order to refer to an outdated or informal plan name. The letter you send to the parties
regarding whether the order is a QMCSO should state the proper name of the plan(s) covered
by the order.
5. Does the order identify the period that it applies to?
The order does not need to include a specific ending date. For example, an acceptable
order might indicate that it expires for each child as they reach age 18 or upon the employee’s
ineligibility for coverage (if earlier). The time period during which the order is effective might also
be inferred from the context of the order. The NMSN clarifies that coverage under a QMCSO
need not continue beyond the age for which coverage is available for dependents generally.
____ 6. Is the child eligible for coverage under the plan?
The QMCSO rules may not override other plan provisions generally applicable to
dependent coverages. For example, a child may not qualify for coverage under the plan for a
number of reasons, including:
The employee is not eligible to participate in the plan (due to reduction in hours,
termination of employment, etc.).
The child does not meet the plan’s definition of “dependent child” because of age or
student status.
7. Does the order require the plan to provide benefits not available under the
plan?
The order may not require the plan to provide any type or form of benefit, or any option
not otherwise provided under the plan. For example, if the plan provides only medical benefits,
the order cannot require that the plan provide dental or vision benefits. Similarly, the order
52
