Our new website is finally active: http://www.dundeelaw.com/.
Check it out when you get a chance!
Monday, September 28, 2009
Thursday, September 17, 2009
Pension Beneficiaries: Change 'Em after Divorce
The Supreme Court issued a decision this year that significantly affects those participating in pensions. The Court, in Kennedy v. Plan Adm for DuPont Savings and Investment Plan, 129 S Ct 865 (2009), held that, even though the ex-wife had waived any and all interest in her ex-husband's pension plan pursuant to the divorce decree, because the ex-husband did not change the plan beneficiary from his ex-wife after the divorce was finalized, the ex-wife was entitled to his pension benefits. In effect, the Court held that ERISA controls, not the waiver contained in the divorce decree.
Lessons? Get all of the forms from the plan administrator and get them signed by the necessary parties; AND make sure that you put language in the agreement (incorporated into the divorce decree) that the party waiving all rights to the plan must sign all documents necessary to effectuate that waiver.
Otherwise, the plan participant might end up giving the ex-spouse a little more than he or she bargained for....
Lessons? Get all of the forms from the plan administrator and get them signed by the necessary parties; AND make sure that you put language in the agreement (incorporated into the divorce decree) that the party waiving all rights to the plan must sign all documents necessary to effectuate that waiver.
Otherwise, the plan participant might end up giving the ex-spouse a little more than he or she bargained for....
Subscribe to:
Posts (Atom)