Gaining Access to Your Clients’ Frozen Pensions

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  • Post last modified:September 1, 2023

Do you have clients with a completely or partially frozen pension? Every year more companies opt to suspend or end their pension plans in favor of alternative retirement benefits. Fedex and UPS are among the most recent companies to join this trend.

When these pensions are frozen, whether fully or partially frozen, the participant becomes fully vested in the frozen portion of their pension. Some pension plans allow for immediate distribution when the plan becomes frozen, but many make the participant wait until retirement age to have access to their funds. If the participant cannot withdraw their funds until retirement:

  1. They experience little to no growth on their vested funds.
  2. There are no further contributions made to the pension plan for the participant.
  3. The participant does not have access to any of the funds.

The In-Marriage QDRO® solves these issues. The In-Marriage QDRO allows access to the vested portion of your client’s frozen pension. You can then help your clients by converting their frozen pension into an IRA where they can see growth on their retirement funds. IMQ helps you provide flexibility for your clients’ retirement options when pension plans are frozen.