A participant completes a distribution form and the spouse completes the spousal consent portion. Shortly thereafter and prior to the distribution being processed, the plan administrator (employer) receives a phone call from the spouse requesting a hold be put on the distribution as they are involved in a pending divorce.

shouldn't this participant receive the distribution absent a QDRO or a pending QDRO?

Issue 1, did an event triggering a distribution occur?

2.

Yes, there has been a separation from service.

absent the spouse revoking the consent in writing, since a distribution trigger occured, it appears permissable to make the distribution.

It may however, be prudent to obtain direction from plan counsel since you are on actual notice that the spouse objects.

Our plan provides that the spousal consent is irrovacable so it seems as if they ought to make the distribtion.

If you are in the Seventh Circuit, you may want to review Schoonmaker v. The Employee Savings Plan of Amoco Corporation and Participating Employers , 987 F.2d 410 (7th Cir., 1993). This case essentially provides that a hold cannot be placed on a participant's plan account due to a divorce unless the Plan's qualified domestic relations order procedures specifically provides for such a hold.

Just to make things more interesting, the Department of Labor position is that notice of an impending QDRO should cause the plan to protect the assets to enable future division. The Department of Labor is wrong and Schoonmaker is right. You should see what the plan's QDRO Procedures say. Schoonmaker implied that the answer could be different if the QDRO Procedures provided for a different result.