Qualified Pre-Retirement Survivor Annuity (QPSA)

Key takeaways

• A QPSA is a death benefit that provides a life annuity to a surviving spouse (or a person treated as a surviving spouse under a QDRO) when a participant dies before beginning retirement benefits.
• QPSAs apply only to qualified retirement plans and are governed by ERISA.
• The participant must be vested and die before retirement; a surviving spouse generally must have been married to the participant for at least one year.
• Plans must notify participants about QPSA rights; spouses must sign any waiver, witnessed by a notary or authorized plan representative.

What is a QPSA?

A Qualified Pre-Retirement Survivor Annuity (QPSA) is a form of death benefit paid as a life annuity (typically monthly for life) to a surviving spouse of a plan participant who dies before retirement. It’s intended to replace the retirement income the participant would have received.

QPSAs are available only through qualified retirement plans (for example, many defined-benefit and money purchase plans). The Internal Revenue Service and the Employee Retirement Income Security Act (ERISA) set rules for how QPSA payments are calculated and administered.

How it works

• If a vested participant dies before beginning retirement benefits, the surviving spouse is eligible for a life annuity based on the participant’s accrued benefit.
• The annuity amount and payment form are determined under plan rules and ERISA calculation requirements.
• The surviving spouse can be a current spouse, or a former spouse/child/dependent if a Qualified Domestic Relations Order (QDRO) treats them as a surviving spouse for plan purposes.

Eligibility and requirements

• Participant must have vested benefits.
• Death must occur before retirement benefits begin.
• Surviving spouse must usually have been married to the participant for at least one year to receive QPSA payments.
• The benefit applies only within qualified plans that provide a life annuity option.

Waiver and notice requirements

• A spouse may choose to waive QPSA rights, but the waiver must be signed by both the participant and the spouse and must be witnessed by a notary public or an authorized plan representative.
• Plans that offer a QPSA must provide a notice to participants:
• When the participant is between ages 32 and 35, or
• Within one year after an employee becomes a plan participant if the employee is older than 35.

Exceptions and special considerations

• Some qualified plans—especially certain defined-contribution plans—may be exempt from providing a QPSA if:
• The plan does not offer a life annuity option, or
• The plan requires the benefit to be paid in full to the surviving spouse rather than as a life annuity.
• A QDRO may be required when a court order assigns rights (for child support, alimony, or property division) so that a former spouse, child, or dependent is treated as the surviving spouse for QPSA purposes.

Practical checklist

For participants:
* Confirm whether your retirement plan is a qualified plan that offers a QPSA.
* Verify vesting status and review beneficiary designations.
* Discuss QPSA implications with your spouse before signing any waiver.

For plan administrators:
* Ensure plan documents comply with ERISA and IRS rules for QPSAs.
* Send required QPSA notices at the specified ages or upon plan entry.
* Require proper witnessing/notarization for any QPSA waiver.

Conclusion

A QPSA provides important survivor protection by converting an accrued but unreduced retirement benefit into a life annuity for a surviving spouse if the participant dies before retirement. Understanding plan-specific rules, notice and waiver requirements, and possible exceptions (including the effect of a QDRO) helps participants and administrators ensure eligible survivors receive due benefits.