A recent decision by the 7th U.S. Circuit Court of Appeals serves as a reminder to plan custodians that they cannot assume that federal law will always trump state law when it comes to assignment of plan assets. In Johnson vs. Merrill Lynch, Pierce, Fenner & Smith, Inc., 719 F.3d 601 (7th Cir. 2013),
Anti-Alienation Rules
Seventh Circuit: Terminated Employee’s Release Agreement Bars Pension Claim, ERISA’s Anti-Alienation Provision Does Not Apply
By Jacklina Len on
The Seventh Circuit dismissed a former employee’s claim for additional pension benefits after concluding that a release agreement he signed had waived any claims that arose prior to the signing of the release and his claim was not protected by ERISA’s anti-alienation provision. Hakim v. Accenture United States Pension Plan, No. 11-3438, 2013 WL…