A separate interest pension QDRO saves 5% to 10% of each monthly payment for life because there is not need for a survivor annuity. The Alternate Payee’s separate interest is split off from the Participant’s pension interest.
In contrast, a shared interest pension QDRO requires the payment of a survivor annuity. Otherwise, if the Alternate Payee survives the Participant the Alternate Payee’s monthly payments stop.
Some Colorado governent retirement plans, such as PERA, do not allow a survivor annutiy to be purchased. With those plans, the Participant must be living in order for the Alternate Payee to receive any payment.