10070 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations 

1The QDRO provisions were added to ERISA and 

the Code by the Retirement Equity Act of 1984 

(REA), Public Law 96–397, 96 Stat. 1438 (1984). 

Except where no corresponding provision exists, all 

references to paragraphs of ERISA section 206(d)(3) 

should be read to refer to corresponding provisions 

of Code section 414(p). The Secretary of Labor has 

authority to interpret the QDRO provisions, section 

206(d)(3), and its parallel provision at section 

414(p) of the Code, and to issue QDRO regulations 

in consultation with the Secretary of the Treasury. 

29 U.S.C. 1056(d)(3)(N). The Secretary of the 

Treasury has authority to issue rules and 

regulations necessary to coordinate the 

requirements of section 414(p) (and the regulations 

issued by the Secretary of Labor thereunder) with 

the other provisions of Chapter I of Subtitle A of 

the Code. 26 U.S.C. 401(n). The Secretary of the 

Treasury has been consulted on this interim final 

rule. 

(13) National Security Division of the 

Department of Justice; and 

(14) Other Federal agencies with 

specific statutory authority to 

investigate violations of Federal 

criminal law. 

* * * * * 

PART 73—NOTIFICATIONS TO THE 

ATTORNEY GENERAL BY AGENTS OF 

FOREIGN GOVERNMENTS 

■ 31. The authority citation for part 73 

continues to read as follows: 

Authority: 18 U.S.C. 951, 28 U.S.C. 509, 

510. 

§ 73.3 [Amended] 

■ 32. In § 73.3(a) remove the words 

‘‘Registration Unit of the Criminal 

Division’’ and add, in their place, the 

words ‘‘National Security Division’’. 

Dated: February 14, 2007. 

Alberto R. Gonzales, 

Attorney General. 

[FR Doc. E7–3755 Filed 3–6–07; 8:45 am] 

BILLING CODE 4410–PF–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2530 

RIN 1210–AB15 

Interim Final Rule Relating to Time and 

Order of Issuance of Domestic 

Relations Orders 

AGENCY: Employee Benefits Security 

Administration, Department of Labor. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This document contains an 

interim final rule issued under section 

1001 of the Pension Protection Act of 

2006, Public Law 109–280 (PPA), which 

requires the Secretary of Labor to issue, 

not later than 1 year after the date of the 

enactment of the PPA, regulations 

clarifying certain issues relating to the 

timing and order of domestic relations 

orders under section 206(d)(3) of the 

Employee Retirement Income Security 

Act of 1974, as amended (ERISA). The 

rule contained in this document 

provides guidance to plan 

administrators, service providers, 

participants, and alternate payees on the 

qualified domestic relations order 

(QDRO) requirements under ERISA. The 

rule is being adopted in response to the 

specific statutory directive contained in 

the PPA. Interested persons are invited 

to submit comments on the interim final 

rule for consideration by the 

Department of Labor in developing a 

final rule. 

DATES: Effective date: The interim final 

rule is effective on April 6, 2007. 

Comment date: Written comments on 

the interim final rule must be received 

by May 7, 2007. 

ADDRESSES: To facilitate the receipt and 

processing of comments, EBSA 

encourages interested persons to submit 

their comments electronically to eORI@dol.gov, or by using the Federal 

eRulemaking portal http:// 

www.regulations.gov (follow 

instructions for submission of 

comments). Persons submitting 

comments electronically are encouraged 

not to submit paper copies. Persons 

interested in submitting comments on 

paper should send or deliver their 

comments (preferably three copies) to: 

Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration, Room N–5669, 

U.S. Department of Labor, 200 

Constitution Avenue, NW., Washington, 

DC 20210, Attention: QDRO Regulation. 

All comments will be available to the 

public, without charge, online at 

http://www.regulations.gov and http:// 

www.dol.gov/ebsa, and at the Public 

Disclosure Room, Employee Benefits 

Security Administration, U.S. 

Department of Labor, Room N–1513, 

200 Constitution Avenue, NW., 

Washington, DC 20210. 

FOR FURTHER INFORMATION CONTACT: 

Yolanda R. Wartenberg, Office of 

Regulations and Interpretations, 

Employee Benefits Security 

Administration, U.S. Department of 

Labor, Washington, DC 20210, (202) 

693–8510. This is not a toll free number. 

SUPPLEMENTARY INFORMATION: 

A. Qualified Domestic Relations Order 

Provisions 

Section 206(d)(3) of title I of ERISA, 

and the related provisions of section 

414(p) of the Internal Revenue Code of 

1986 (Code), establish a limited 

exception to the prohibitions against 

assignment and alienation contained in 

ERISA section 206(d)(1) and Code 

section 401(a)(13).1 Under this limited 

exception, a participant’s benefits under 

a pension plan may be assigned to an 

alternate payee, defined as the 

participant’s spouse, former spouse, 

child, or other dependent, pursuant to 

an order that constitutes a qualified 

domestic relations order (QDRO) within 

the meaning of those provisions. Such 

QDROs, in addition, survive the federal 

preemption of State law imposed by 

ERISA section 514(a) by virtue of ERISA 

section 514(b)(7). 

Pursuant to the QDRO provisions, a 

plan administrator must determine, in 

accordance with specified procedures, 

whether an order purporting to divide a 

participant’s benefits under a plan 

meets the applicable requirements set 

forth in section 206(d)(3) of ERISA. If 

the plan administrator determines that 

the order meets these requirements and 

is, accordingly, a QDRO within the 

meaning of section 206(d)(3), the plan 

administrator must distribute the 

assigned portion of the participant’s 

benefits to the alternate payee or payees 

named in the order in accordance with 

the terms of the order. 

Subparagraphs (G) and (H) of ERISA 

section 206(d)(3) set forth provisions 

relating to the procedures that a plan 

must establish, and a plan administrator 

must observe, in determining whether 

an order is a QDRO and in 

administering the plan and the 

participant’s benefits during the period 

in which the plan administrator is 

making such a determination. The 

plan’s procedures must be reasonable, 

must be in writing, must require prompt 

notification and disclosure of the 

procedures to participants and alternate 

payees upon receipt of an order, and 

must permit alternate payees to 

designate representatives for notice 

purposes. In addition, the plan 

administrator must complete the 

determination process and notify 

participants and alternate payees of its 

determination within a reasonable 

period after receipt of the order. 

Subparagraph (H) of section 206(d)(3) 

provides specific procedural protection 

of a potential alternate payee’s interest 

in a participant’s benefits during the 

plan’s determination process and for a 

period of up to 18 months (the 18- 

month period) during which the issue of 

the qualified status of a domestic 

relations order is being determined—

whether by the plan administrator, by a 

court of competent jurisdiction, or 


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2The examples in paragraphs (b)(2), (c)(2) and 

(d)(2) of the regulation show how the rules in 

paragraphs (b)(1), (c)(1) and (d)(1), respectively, 

apply to specific facts. They do not represent the 

only circumstances for which these rules would 

provide clarification. 

otherwise. During the 18-month period, 

a plan administrator must separately 

account for any amounts that would 

have been payable to the alternate payee 

if the order had been immediately 

treated as a QDRO and must pay these 

amounts (including any interest 

thereon) to the alternate payee if the 

order is deemed qualified within such 

period. If the issue as to whether the 

order is a QDRO is not resolved within 

the 18-month period, the plan 

administrator is to pay such amounts to 

the person or persons who would have 

been entitled to the amounts if there had 

been no order. Any determination that 

an order is a QDRO that is made after 

the close of the 18-month period is to 

be applied prospectively only. 

If a plan fiduciary, acting in 

accordance with the fiduciary 

responsibility provisions of part 4 of 

title I of ERISA, treats an order as a 

QDRO (or determines that such an order 

is not a QDRO) and distributes benefits 

in accordance with that determination, 

paragraph (I) of section 206(d)(3) 

provides that the obligations of the plan 

and its fiduciaries to the affected 

participants and alternate payees with 

respect to the distribution shall be 

treated as discharged. 

The QDRO provisions detail specific 

requirements that an order must satisfy 

in order to constitute a QDRO. The 

order must be a ‘‘domestic relations 

order’’ issued pursuant to a State 

domestic relations law (including a 

community property law) that relates to 

the provision of child support, alimony 

payments, or marital property rights to 

a spouse, former spouse, child, or other 

dependent of a participant. Section 

206(d)(3)(B)(ii). It must create or 

recognize the existence of an alternate 

payee’s right to receive all or a portion 

of the benefits payable to a participant 

under a plan. Section 206(d)(3)(B)(i). 

Further, it must clearly specify the name 

and last known mailing address (if any) 

of the participant and the name and 

mailing address of each alternate payee 

covered by the order; the amount or 

percentage of the participant’s benefits 

to be paid by the plan(s) to each such 

alternate payee, or the manner in which 

such amount or percentage is to be 

determined; the number of payments or 

period to which the order applies; and 

each plan to which the order applies. 

Section 206(d)(3)(C). An order will fail 

to be a QDRO, however, if it requires the 

plan to provide any type or form of 

benefit, or any option, not otherwise 

provided under the plan; to provide 

increased benefits determined on the 

basis of actuarial value; or to pay 

benefits to an alternate payee that are 

required to be paid to another alternate 

payee under another order previously 

determined to be a QDRO. Section 

206(d)(3)(D). 

B. Pension Protection Act of 2006 

Under section 1001 of the Pension 

Protection Act of 2006 (PPA), Public 

Law 109–280, section 1001, 120 Stat. 

780 (2006), Congress instructed the 

Secretary of Labor to issue regulations, 

not later than 1 year after the date of the 

enactment, under section 206(d)(3) of 

ERISA and section 414(p) of the Code, 

to clarify that—(1) a domestic relations 

order otherwise meeting the 

requirements to be a QDRO, including 

the requirements of section 206(d)(3)(D) 

of ERISA and section 414(p)(3) of the 

Code, shall not fail to be treated as a 

QDRO solely because—(A) the order is 

issued after, or revises, another 

domestic relations order or QDRO; or 

(B) of the time at which it is issued. 

Section 1001 of the PPA also requires 

that the regulations clarify that such 

orders are subject to all of the same 

requirements and protections that apply 

to QDROs, including the provisions of 

section 206(d)(3)(H) of ERISA and 

section 414(p)(7) of the Code. 

C. Overview of Interim Final Rule 

Scope of the Regulation 

Paragraph (a) of the regulation 

provides that the scope of the regulation 

is to implement the directive contained 

in section 1001 of the PPA to clarify 

certain timing issues with respect to 

domestic relations orders and qualified 

domestic relations orders under ERISA. 

Subsequent Domestic Relations Orders 

Paragraph (b)(1) of the regulation 

provides that a domestic relations order 

otherwise meeting ERISA’s 

requirements to be a QDRO shall not fail 

to be treated as a QDRO solely because 

the order is issued after, or revises, 

another domestic relations order or 

QDRO. Paragraph (b)(2) provides 

examples of this rule.2 Example 1 

illustrates this rule as applied to a 

subsequent order revising an earlier 

QDRO involving the same parties. 

Example 2 illustrates this rule in the 

context of a subsequent order involving 

the same participant and a different 

alternate payee. 

Timing of Domestic Relations Order 

Paragraph (c)(1) of the regulation 

provides that a domestic relations order 

otherwise meeting ERISA’s 

requirements to be a QDRO shall not fail 

to be treated as a QDRO solely because 

of the time at which it is issued. 

Paragraph (c)(2) provides examples of 

this rule. Example 1 illustrates the 

principle that a domestic relation order 

will not fail to be a QDRO solely 

because it is issued after the death of the 

participant. Example 2 illustrates that a 

domestic relation order will not fail to 

be a QDRO solely because it is issued 

after the parties divorce. Example 3 

illustrates that an order would not fail 

to be a QDRO solely because it is issued 

after the participant’s annuity starting 

date. 

Requirements and Protections 

Paragraph (d)(1) of the regulation 

provides that any domestic relations 

order described in paragraph (b) or (c) 

of the regulation shall be subject to the 

same requirements and protections that 

apply to all QDROs under section 

206(d)(3) of ERISA. Paragraph (d)(2) 

provides examples of this rule. Example 

1 illustrates that, although an order will 

not fail to be a QDRO solely because it 

is issued after the death of the 

participant, the order would fail to be a 

QDRO if it requires the plan to provide 

a type or form of benefit, or any option, 

not otherwise provided under the plan. 

Example 2 illustrates application of the 

protective rules regarding segregation of 

payable benefits to a second order 

involving the same participant and 

alternate payee. Example 3 illustrates 

that, although an order will not fail to 

be a QDRO solely because it is issued 

after another QDRO, the order would 

fail to be a QDRO if it assigns benefits 

already assigned to another alternate 

payee under another QDRO. 

D. Effective Date 

The interim final regulation will be 

effective 30 days after the date of 

publication in the Federal Register. The 

guidance provided by the interim final 

regulation is in response to the direction 

from Congress in section 1001 of the 

PPA to the Secretary of Labor to issue 

regulations to clarify current law under 

section 206(d)(3) of ERISA. The 

Department, therefore, has determined it 

is necessary and appropriate to proceed 

with an interim final rule to provide the 

clarification mandated by Congress, 

while also requesting public comments 

on the matter for the purpose of drafting 

a final rule. 

E. Justification for Interim Final 

Rulemaking 

This regulation incorporates, with 

minor changes, language in section 1001 

of the Pension Protection Act. The 

changes do not modify the meaning of 


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the statutory language. In the 

Department’s view, Congress directed 

the Secretary to adopt the substance of 

this language as a clarification of current 

law. In issuing these regulations, the 

Secretary has not deviated from the 

narrow Congressional directive. The 

examples included in the regulation 

merely provide interpretive guidance by 

explaining how the statutory language 

would apply to particular facts. 

Therefore, in accordance with section 

553(b) of the Administrative Procedure 

Act, 5 U.S.C. 553(b), the Department 

finds for good cause that notice and 

public procedure on this regulation is 

unnecessary. To the extent that the 

examples go beyond the statutory 

language, they are purely interpretive 

and are not subject to the notice and 

public procedure requirements of 

section 553(b). 

F. Request for Comments 

The Department invites comments 

from interested persons on all aspects of 

the interim final rule, including 

whether, and to what extent, there are 

additional factual scenarios that should 

be added to the examples already in the 

interim final rule. To facilitate the 

receipt and processing of comments, 

EBSA encourages interested persons to 

submit their comments electronically by 

e-mail to e-ORI@dol.gov, or by using the 

Federal eRulemaking portal at http:// 

www.regulations.gov (follow 

instructions for submission of 

comments). Persons submitting 

comments electronically are encouraged 

not to submit paper copies. Persons 

interested in submitting comments on 

paper should send or deliver their 

comments (preferably three copies) to: 

Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration, Room N–5669, 

U.S. Department of Labor, 200 

Constitution Avenue, NW., Washington, 

DC 20210, Attention: QDRO Regulation. 

All comments will be available to the 

public, without charge, online at 

http://www.regulations.gov and http:// 

www.dol.gov/ebsa, and at the Public 

Disclosure Room, Employee Benefits 

Security Administration, U.S. 

Department of Labor, Room N–1513, 

200 Constitution Avenue, NW., 

Washington, DC, 20210. 

G. Regulatory Impact Analysis 

Executive Order 12866 Statement 

Under Executive Order 12866 (58 FR 

51735), the Department must determine 

whether a regulatory action is 

‘‘significant’’ and therefore subject to 

review by the Office of Management and 

Budget (OMB). Section 3(f) of the 

Executive Order defines a ‘‘significant 

regulatory action’’ as an action that is 

likely to result in a rule (1) having an 

annual effect on the economy of $100 

million or more, or adversely and 

materially affecting a sector of the 

economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local or tribal 

governments or communities (also 

referred to as ‘‘economically 

significant’’); (2) creating serious 

inconsistency or otherwise interfering 

with an action taken or planned by 

another agency; (3) materially altering 

the budgetary impacts of entitlement 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) raising novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. The Department has determined 

that this regulatory action is not 

economically significant within the 

meaning of section 3(f)(1) the Executive 

Order. However, the Office of 

Management and Budget (OMB) has 

determined that the action is significant 

within the meaning of section 3(f)(4) of 

the Executive Order, and the 

Department accordingly provides the 

following assessment of its potential 

costs and benefits. 

This interim final rule is intended to 

clarify the statutory requirements for 

QDROs under section 206(d)(3) of 

ERISA and section 414(p) of the Code. 

The provisions of section 206(d)(3) 

generally assist State authorities in 

deciding permissible ways in which 

pension benefits may be divided in 

domestic relations matters. The rules 

and processes under section 206(d)(3) 

make it possible for plan administrators 

to determine whether a State order 

seeking to assign pension benefits to an 

alternate payee should be given effect 

under the plan; clear rules concerning 

what constitutes a QDRO have the effect 

of assisting plan administrators in 

reviewing orders received by the plan, 

as well as participants and alternate 

payees in planning how to take pension 

assets into account when significant 

events require making a division of 

marital assets. 

In directing the Department, in 

section 1001 of the Pension Protection 

Act, to clarify the application of the 

QDRO provisions, Congress expressed 

the view that existing uncertainty about 

the application of those provisions has 

caused difficulties meriting resolution 

through regulatory action. Uncertainty 

concerning the application of the QDRO 

provisions can impose litigation and 

other costs on plans, participants, and 

alternate payees, as well as on State 

domestic relations authorities, that will 

be reduced through the promulgation of 

this rule. Consistent with the view of 

Congress, the rule clarifies, first, that the 

sequence in which multiple orders may 

be issued does not in itself affect 

whether the orders are QDROs, and, 

second, that the time at which an order 

is issued does not, in itself, determine 

whether an order is or is not a QDRO. 

The rule further reiterates that an order 

must meet the specific requirements of 

sections 206(d)(3) of ERISA and section 

414(p) of the Code. 

By reducing uncertainty over the 

application of the statutory 

requirements in specific circumstances, 

the rule is expected to reduce costs that 

might otherwise arise from the necessity 

of resolving uncertainty in such 

circumstances. By providing clearer 

rules for plan administrators, the rule is 

also expected to increase the efficiency 

of plan administration. In addition, the 

Department is issuing this rule in direct 

response to a Congressional directive. 

As described above, section 1001 of the 

Pension Protection Act requires the 

Department to issue regulations 

clarifying that an order otherwise 

meeting the requirements of section 

206(d)(3) of ERISA for a QDRO should 

not fail to be treated as a QDRO solely 

because it was issued after or revised 

another order, or because of the time at 

which it was issued. In issuing this 

interim final rule, therefore, the 

Department is fulfilling objectives 

expressly endorsed by Congress. 

Because the rule applies only in certain 

specific circumstances and affects only 

a small subset of domestic relations 

orders, the Department believes that its 

economic impact will be small, overall, 

but positive. 

The rule is not anticipated to impose 

increased compliance costs, since it 

merely establishes the legal effect of 

certain sequences of events. Although it 

may cause some orders to be treated as 

QDROs that otherwise might be 

disputed (or fail to be treated as a 

QDRO), the rule provides certainty with 

respect to the circumstances it covers, 

which will aid State authorities seeking 

to divide pension benefits and assist 

plan administrators seeking to discharge 

their obligations under section 206(d)(3) 

of ERISA, without limiting the power of 

State authorities to determine the proper 

division of marital assets. The rule is 

expected generally to provide benefits to 

pension plans, plan participants and 

alternate payees, and State domestic 

relations authorities by increasing the 

clarity of the rules that apply to QDROs. 

Based on the foregoing assessment, 

the Department concludes that 

promulgation of this interim final rule 


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will provide substantial benefits 

without imposing major costs. 

Paperwork Reduction Act 

The interim final regulation being 

issued here is not subject to the 

requirements of the Paperwork 

Reduction Act of 1980 (44 U.S.C. 3501 

et seq.) because it does not contain an 

‘‘information collection’’ as defined in 

44 U.S.C. 3502 (11). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the Administrative 

Procedure Act (5 U.S.C 551 et seq.) and 

that are likely to have a significant 

economic impact on a substantial 

number of small entities. Unless an 

agency certifies that a proposed rule 

will not have a significant economic 

impact on a substantial number of small 

entities, section 603 of the RFA requires 

that the agency present an initial 

regulatory flexibility analysis at the time 

of the publication of the notice of 

proposed rule-making describing the 

impact of the rule on small entities and 

seeking public comment on such 

impact. Because this rule is being issued 

as an interim final rule, the RFA does 

not apply and the Department is not 

required to either certify that the rule 

will not have a significant impact on a 

substantial number of small businesses 

or conduct an initial regulatory 

flexibility analysis. Nevertheless, the 

Department has considered the likely 

impact of the interim rule on small 

entities in connection with its 

assessment under Executive Order 

12866, described above, and believes 

this rule will not have a significant 

impact on a substantial number of small 

entities. For purposes of this discussion, 

the Department deemed a small entity to 

be an employee benefit plan with fewer 

than 100 participants. The basis of this 

definition is found in section 104(a)(2) 

of ERISA, which permits the Secretary 

of Labor to prescribe simplified annual 

reports for pension plans which cover 

fewer than 100 participants. The 

Department invites comments on the 

effect of the interim final rule on small 

entities. 

Congressional Review Act 

The interim final rule being issued 

here is subject to the Congressional 

Review Act provisions of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (5 U.S.C. 801 et 

seq.) and will be transmitted to Congress 

and the Comptroller General for review. 

The interim final rule is not a ‘‘major 

rule’’ as that term is defined in 5 U.S.C. 

804, because it does not result in (1) an 

annual effect on the economy of $100 

million or more; (2) a major increase in 

costs or prices for consumers, 

individual industries, or federal, State, 

or local government agencies, or 

geographic regions; or (3) significant 

adverse effects on competition, 

employment, investment, productivity, 

innovation, or on the ability of United 

States-based enterprises to compete 

with foreign-based enterprises in 

domestic and export markets. 

Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4), the interim final rule does not 

include any federal mandate that may 

result in expenditures by State, local, or 

tribal governments, or impose an annual 

burden exceeding $100 million on the 

private sector. 

Federalism Statement 

Executive Order 13132 (August 4, 

1999) outlines fundamental principles 

of federalism and requires federal 

agencies to adhere to specific criteria in 

the process of their formulation and 

implementation of policies that have 

substantial direct effects on the States, 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. This interim final 

rule does not have federalism 

implications because it has no 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Section 514 of 

ERISA provides, with certain exceptions 

specifically enumerated, that the 

provisions of titles I and IV of ERISA 

supersede any and all laws of the States 

as they relate to any employee benefit 

plan covered under ERISA. One 

exception described in section 514(b)(7) 

is for qualified domestic relations 

orders, as defined in section 206(d)(3) of 

ERISA. The interim rule does not alter 

the provisions of the statute, but merely 

clarifies the status of certain types of 

domestic relations orders under ERISA. 

List of Subjects in 29 CFR Part 2530 

Alternate payee, Divorce, Domestic 

relations orders, Employee benefit 

plans, Marital property, Pensions, Plan 

administrator, Qualified domestic 

relations orders, Spouse. 

■ For the reasons set forth in the 

preamble, the Department amends 

Subchapter D, Part 2530 of Title 29 of 

the Code of Federal Regulations as 

follows: 

Subchapter D—Minimum Standards for 

Employee Pension Benefit Plans Under the 

Employee Retirement Income Security Act 

of 1974 

PART 2530—RULES AND 

REGULATIONS FOR MINIMUM 

STANDARDS FOR EMPLOYEE 

PENSION BENEFIT PLANS 

■ 1. The authority citation for part 2530 

is revised to read as follows: 

Authority: Secs. 201, 202, 203, 204, 210, 

505, 1011, 1012, 1014, and 1015, Pub. L. 93–

406, 88 Stat. 852–862, 866–867, 894, 898–

913, 924–929 (29 U.S.C. 1051–4, 1060, 1135, 

26 U.S.C. 410, 411, 413, 414); Secretary of 

Labor’s Order No. 13–76. Section 2530.206 

also issued under sec. 1001, Pub. L. 109–280, 

120 Stat. 780. 

■ 2. Add § 2530.206 to read as follows: 

§ 2530.206 Time and order of issuance of 

domestic relations orders. 

(a) Scope. This section implements 

section 1001 of the Pension Protection 

Act of 2006 by clarifying certain timing 

issues with respect to domestic relations 

orders and qualified domestic relations 

orders under the Employee Retirement 

Income Security Act of 1974, as 

amended (ERISA), 29 U.S.C. 1001 et seq. 

(b) Subsequent domestic relations 

orders. (1) Subject to paragraph (d)(1) of 

this section, a domestic relations order 

shall not fail to be treated as a qualified 

domestic relations order solely because 

the order is issued after, or revises, 

another domestic relations order or 

qualified domestic relations order. 

(2) The rule described in paragraph 

(b)(1) of this section is illustrated by the 

following examples: 

Example (1). Subsequent domestic 

relations order between the same parties. 

Participant and Spouse divorce, and the 

administrator of Participant’s 401(k) plan 

receives a domestic relations order. The 

administrator determines that the order is a 

QDRO. The QDRO allocates a portion of 

Participant’s benefits to Spouse as the 

alternate payee. Subsequently, before benefit 

payments have commenced, Participant and 

Spouse seek and receive a second domestic 

relations order. The second order reduces the 

portion of Participant’s benefits that Spouse 

was to receive under the QDRO. The second 

order does not fail to be treated as a QDRO 

solely because the second order is issued 

after, and reduces the prior assignment 

contained in, the first order. 

Example (2). Subsequent domestic 

relations order between different parties. 

Participant and Spouse divorce, and the 

administrator of Participant’s 401(k) plan 

receives a domestic relations order. The 

administrator determines that the order is a 

QDRO. The QDRO allocates a portion of 


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10074 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations 

Participant’s benefits to Spouse as the 

alternate payee. Participant marries Spouse 2, 

and then they divorce. Participant’s 401(k) 

plan administrator subsequently receives a 

domestic relations order pertaining to Spouse 

2. The order assigns to Spouse 2 a portion of 

Participant’s 401(k) benefits not already 

allocated to Spouse 1. The second order does 

not fail to be a QDRO solely because the 

second order is issued after the plan 

administrator has determined that an earlier 

order pertaining to Spouse 1 is a QDRO. 

(c) Timing. (1) Subject to paragraph 

(d)(1) of this section, a domestic 

relations order shall not fail to be 

treated as a qualified domestic relations 

order solely because of the time at 

which it is issued. 

(2) The rule described in paragraph 

(c)(1) of this section is illustrated by the 

following examples: 

Example (1). Orders issued after death. 

Participant and Spouse divorce, and the 

administrator of Participant’s plan receives a 

domestic relations order, but the 

administrator finds the order deficient and 

determines that it is not a QDRO. Shortly 

thereafter, Participant dies while actively 

employed. A second domestic relations order 

correcting the defects in the first order is 

subsequently submitted to the plan. The 

second order does not fail to be treated as a 

QDRO solely because it is issued after the 

death of the Participant. 

Example (2). Orders issued after divorce. 

Participant and Spouse divorce. As a result, 

Spouse no longer meets the definition of 

‘‘surviving spouse’’ under the terms of the 

plan. Subsequently, the plan administrator 

receives a domestic relations order requiring 

that Spouse be treated as the Participant’s 

surviving spouse for purposes of receiving a 

death benefit payable under the terms of the 

plan only to a participant’s surviving spouse. 

The order does not fail to be treated as a 

QDRO solely because, at the time it is issued, 

Spouse no longer meets the definition of a 

‘‘surviving spouse’’ under the terms of the 

plan. 

Example (3). Orders issued after annuity 

starting date. Participant retires and 

commences benefit payments in the form of 

a straight life annuity, with respect to which 

Spouse waives the surviving spousal rights 

provided under the plan and section 205 of 

ERISA. Participant and Spouse divorce after 

Participant’s annuity starting date and 

present the plan with a domestic relations 

order providing for Spouse, as alternate 

payee, to receive half of the benefit payments 

that are made to Participant after a specified 

future date. Pursuant to paragraph (c)(1) of 

this section, the order does not fail to be a 

QDRO solely because it is issued after the 

annuity starting date. 

(d) Requirements and protections. (1) 

Any domestic relations order described 

in this section shall be subject to the 

same requirements and protections that 

apply to qualified domestic relations 

orders under section 206(d)(3) of ERISA. 

(2) The rule described in paragraph 

(d)(1) of this section is illustrated by the 

following examples: 

Example (1). Type or form of benefit. 

Participant and Spouse divorce, and their 

divorce decree provides that the parties will 

prepare a domestic relations order assigning 

50 percent of Participant’s benefits under a 

401(k) plan to Spouse to be paid in monthly 

installments over a ten-year period. Shortly 

thereafter, Participant dies while actively 

employed. A domestic relations order 

consistent with the decree is subsequently 

submitted to the 401(k) plan; however, the 

plan does not provide for ten-year 

installment payments of the type described 

in the order. Pursuant to paragraph (c)(1) of 

this section, the order does not fail to be 

treated as a QDRO solely because it is issued 

after the death of Participant, but the order 

would fail to be a QDRO under section 

206(d)(3)(D)(i) and paragraph (d)(1) of this 

section because the order requires the plan to 

provide a type or form of benefit, or any 

option, not otherwise provided under the 

plan. 

Example (2). Segregation of payable 

benefits. Participant and Spouse divorce, and 

the administrator of Participant’s plan 

receives a domestic relations order under 

which Spouse would begin to receive 

benefits immediately if the order is 

determined to be a QDRO. The plan 

administrator separately accounts for the 

amounts covered by the domestic relations 

order as is required under section 

206(d)(3)(H)(v) of ERISA. The plan 

administrator finds the order deficient and 

determines that it is not a QDRO. 

Subsequently, after the expiration of the 

segregation period pertaining to that order, 

the plan administrator receives a second 

domestic relations order relating to the same 

parties under which Spouse would begin to 

receive benefits immediately if the second 

order is determined to be a QDRO. 

Notwithstanding the expiration of the first 

segregation period, the amounts covered by 

the second order must be separately 

accounted for by the plan administrator for 

an 18-month period, in accordance with 

section 206(d)(3)(H) of ERISA and paragraph 

(d)(1) of this section. 

Example (3). Previously assigned benefits. 

Participant and Spouse divorce, and the 

administrator of Participant’s 401(k) plan 

receives a domestic relations order. The 

administrator determines that the order is a 

QDRO. The QDRO assigns a portion of 

Participant’s benefits to Spouse as the 

alternate payee. Participant marries Spouse 2, 

and then they divorce. Participant’s 401(k) 

plan administrator subsequently receives a 

domestic relations order pertaining to Spouse 

2. The order assigns to Spouse 2 a portion of 

Participant’s 401(k) benefits already assigned 

to Spouse 1. The second order does not fail 

to be treated as a QDRO solely because the 

second order is issued after the plan 

administrator has determined that an earlier 

order pertaining to Spouse 1 is a QDRO. The 

second order, however, would fail to be a 

QDRO under section 206(d)(3)(D)(iii) and 

paragraph (d)(1) of this section because it 

assigns all or a portion of Participant’s 

benefits that are already assigned to Spouse 

1 by the prior QDRO. 

Signed at Washington, DC, this 28th day of 

February, 2007. 

Bradford P. Campbell, 

Acting Assistant Secretary, Employee Benefits 

Security Administration, Department of 

Labor. 

[FR Doc. E7–3820 Filed 3–6–07; 8:45 am] 

BILLING CODE 4510–29–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2006–0658; FRL–8116–9] 

Polymer of 2-Ethyl-2-(Hydroxymethyl)- 

1,3-Propanediol, Oxirane, 

Methyloxirane, 1,2-Epoxyalkanes; 

Tolerance Exemption 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation establishes 

exemptions from the requirement of a 

tolerance for residues of polymer of 2- 

ethyl-2-(hydroxymethyl)-1,3- 

propanediol, oxirane, methyloxirane, 

1,2-epoxyalkanes; when used as inert 

ingredients in a pesticide chemical 

formulation. BASF Corporation 

submitted a petition to EPA under the 

Federal Food, Drug, and Cosmetic Act 

(FFDCA), as amended by the Food 

Quality Protection Act of 1996 (FQPA) 

requesting an exemption from the 

requirement of a tolerance. This 

regulation eliminates the need to 

establish a maximum permissible level 

for residues of polymer of 2-ethyl-2- 

(hydroxymethyl)-1,3-propanediol, 

oxirane, methyloxirane, 1,2- 

epoxyalkanes. 

DATES: This regulation is effective 

March 7, 2007. Objections and requests 

for hearings must be received on or 

before May 7, 2007, and must be filed 

in accordance with the instructions 

provided in 40 CFR part 178 (see also 

Unit I.C. of the SUPPLEMENTARY

INFORMATION). 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ–

OPP–2006–0658. To access the 

electronic docket, go to http:// 

www.regulations.gov, select ‘‘Advanced 

Search,’’ then ‘‘Docket Search.’’ Insert 

the docket ID number where indicated 

and select the ‘‘Submit’’ button. Follow 

the instructions on the regulations.gov 

web site to view the docket index or 

access available documents. All 

documents in the docket are listed in 

the docket index available in 

regulations.gov. Although listed in the 


sroberts on PROD1PC70 with RULES