OPINION OF THE COURT
KENNEDY V. PLAN ADMINISTRATOR FOR DUPONT SAV.AND INVESTMENT
PLAN
555 U. S. ____ (2009)
SUPREME COURT OF THE UNITED STATES
NO. 07-636
KARI E. KENNEDY, executrix of the ESTATE OF WILLIAM
PATRICK KENNEDY, DECEASED, PETITIONER
v. PLAN
ADMINISTRATOR FOR DuPONT SAVINGS AND INVEST- MENT PLAN
et al.
on writ of certiorari to the united states court of
appeals for the fifth circuit
[January 26, 2009]
Justice Souter delivered the
opinion of the Court.
The Employee Retirement Income
Security Act of 1974 (ERISA), 88 Stat. 829, 29 U. S. C. §1001
et seq., generally obligates administrators to manage
ERISA plans “in accordance with the documents and instruments
governing” them. §1104(a)(1)(D). At a more specific level, the Act
requires covered pension benefit plans to “provide that benefits …
under the plan may not be assigned or alienated,” §1056(d)(1), but
this bar does not apply to qualified domestic relations orders
(QDROs), §1056(d)(3). The question here is whether the terms of the
limitation on assignment or alienation invalidated the act of a
divorced spouse, the designated beneficiary under her ex-husband’s
ERISA pension plan, who purported to waive her entitlement by a
federal common law waiver embodied in a divorce decree that was not
a QDRO. We hold that such a waiver is not rendered invalid by the
text of the antialienation provision, but that the plan
administrator properly disregarded the waiver owing to its conflict
with the designation made by the former husband in accordance with
plan documents.
I
The decedent, William Kennedy,
worked for E. I. DuPont de Nemours & Company and was a
participant in its savings and investment plan (SIP), with power
both to “designate any beneficiary or beneficiaries … to receive
all or part” of the funds upon his death, and to “replace or revoke
such designation.” App. 48
. The plan requires “[a]ll
authorizations, designations and requests concerning the Plan [to]
be made by employees in the manner prescribed by the [plan
administrator],”
id., at 52, and provides forms for
designating or changing a beneficiary,
id., at 34, 56–57.
If at the time the participant dies “no surviving spouse exists and
no beneficiary designation is in effect, distribution shall be made
to, or in accordance with the directions of, the executor or
administrator of the decedent’s estate.”
Id., at 48.
The SIP is an ERISA
“ ‘employee pension benefit plan,’ ” 497 F. 3d 426,
427 (CA5 2007); 29 U. S. C. §1002(2), and the parties do not
dispute that the plan satisfies ERISA’s antialienation provision,
§1056(d)(1), which requires it to “provide that benefits provided
under the plan may not be assigned or alienated.”[
Footnote 1] The plan does, however, permit a
beneficiary to submit a “qualified disclaimer” of benefits as
defined under the Tax Code, see 26 U. S. C. §2518, which has
the effect of switching the beneficiary to an “alternate …
determined according to a valid beneficiary designation made by the
deceased.” Supp. Record 86–87 (Exh. 15).
In 1971, William married Liv Kennedy, and, in
1974, he signed a form designating her to take benefits under the
SIP, but naming no contingent beneficiary to take if she disclaimed
her interest. 497 F. 3d, at 427. William and Liv divorced in
1994, subject to a decree that Liv “is … divested of all right,
title, interest, and claim in and to … [a]ny and all sums … the
proceeds [from], and any other rights related to any … retirement
plan, pension plan, or like benefit program existing by reason of
[William’s] past or present or future employment.” App. to Pet. for
Cert. 64–65. William did not, however, execute any documents
removing Liv as the SIP beneficiary, 497 F. 3d, at 428, even
though he did execute a new beneficiary-designation form naming his
daughter, Kari Kennedy, as the beneficiary under DuPont’s Pension
and Retirement Plan, also governed by ERISA.
On William’s death in 2001, petitioner Kari
Kennedy was named executrix and asked DuPont to distribute the SIP
funds to William’s Estate.
Ibid. DuPont, instead, relied
on William’s designation form and paid the balance of some $400,000
to Liv.
Ibid. The Estate then sued respondents DuPont and
the SIP plan administrator (together, DuPont), claiming that the
divorce decree amounted to a waiver of the SIP benefits on Liv’s
part, and that DuPont had violated ERISA by paying the benefits to
William’s designee.[
Footnote
2]
So far as it matters here, the District Court
entered summary judgment for the Estate, to which it ordered DuPont
to pay the value of the SIP benefits. The court relied on Fifth
Circuit precedent establishing that a beneficiary can waive his
rights to the proceeds of an ERISA plan “ ‘provided that the
waiver is explicit, voluntary, and made in good faith.’ ” App.
to Pet. for Cert. 38 (quoting
Manning v.
Hayes,
212 F. 3d 866, 874 (CA5 2000)).
The Fifth Circuit nonetheless reversed,
distinguishing prior decisions enforcing federal common law waivers
of ERISA benefits because they involved life-insurance policies,
which are considered “ ‘welfare plan[s]’ ” under ERISA
and consequently free of the antialienation provision. 497
F. 3d, at 429. The Court of Appeals held that Liv’s waiver
constituted an assignment or alienation of her interest in the SIP
benefits to the Estate, and so could not be honored.
Id.,
at 430. The court relied heavily on the ERISA provision for
bypassing the antialienation provision when a marriage breaks up:
under 29 U. S. C. §1056(d)(3),[
Footnote 3] a court order that satisfies certain statutory
requirements is known as a qualified domestic relations order,
which is exempt from the bar on assignment or alienation. Because
the Kennedys’ divorce decree was not a QDRO, the Fifth Circuit
reasoned that it could not give effect to Liv’s waiver incorporated
in it, given that “ERISA provides a specific mechanism—the QDRO—for
addressing the elimination of a spouse’s interest in plan benefits,
but that mechanism is
not invoked.” 497 F. 3d, at
431.
We granted certiorari to resolve a split among
the Courts of Appeals and State Supreme Courts over a divorced
spouse’s ability to waive pension plan benefits through a divorce
decree not amounting to a QDRO.[
Footnote 4] 552 U. S. ___ (2008). We subsequently realized
that this case implicates the further split over whether a
beneficiary’s federal common law waiver of plan benefits is
effective where that waiver is inconsistent with plan
documents,[
Footnote 5] and
after oral argument we invited supplemental briefing on that latter
issue, upon which the disposition of this case ultimately turns. We
now affirm, albeit on reasoning different from the Fifth Circuit’s
rationale.
II
A
By its terms, the antialienation
provision, §1056(d)(1), requires a plan to provide expressly that
benefits be neither “assigned” nor “alienated,” the operative verbs
having histories of legal meaning: to “assign” is “[t]o transfer;
as to assign property, or some interest therein,” Black’s Law
Dictionary 152 (4th rev. ed. 1968), and to “alienate” is “[t]o
convey; to transfer the title to property,”
id., at 96. We
think it fair to say that Liv did not assign or alienate anything
to William or to the Estate later standing in his shoes.
The Fifth Circuit saw the waiver
as an assignment or alienation to the Estate, thinking that Liv’s
waiver transferred the SIP benefits to whoever would be next in
line; without a designated contingent beneficiary, the Estate would
take them. The court found support in the applicable Treasury
Department regulation that defines “assignment” and “alienation” to
include
“[a]ny direct or indirect arrangement (whether
revocable or irrevocable) whereby a party acquires from a
participant or beneficiary a right or interest enforceable against
the plan in, or to, all or any part of a plan benefit payment which
is, or may become, payable to the participant or beneficiary.” 26
CFR §1.401(a)–13(c)(1)(ii) (2008).
See
Boggs v.
Boggs,
520
U. S. 833, 851–852 (1997) (relying upon the regulation to
interpret the meaning of “assignment” and “alienation” in
§1056(d)(1)). The Circuit treated Liv’s waiver as an
“ ‘indirect arrangement’ ” whereby the Estate gained an
“ ‘interest enforceable against the plan.’ ” 497
F. 3d, at 430.
Casting the alienation net this far, though,
raises questions that leave one in doubt. Although it is possible
to speak of the waiver as an “arrangement” having the indirect
effect of a transfer to the next possible beneficiary, it would be
odd usage to speak of an estate as the transferee of its own
decedent’s property, just as it would be to speak of the decedent
in his lifetime as his own transferee. And treating the estate or
even the ultimate estate beneficiary as the assignee or transferee
would be strange under the terms of the regulation: it would be
hard to say the estate or future beneficiary “acquires” a right or
interest when at the time of the waiver there was no estate and the
beneficiary of a future estate might be anyone’s guess. If there
were a contingent beneficiary (or the participant made a subsequent
designation) the estate would get no interest; as for an estate
beneficiary, the identity could ultimately turn on the law of
intestacy applied to facts as yet unknown, or on the contents of
the participant’s subsequent will, or simply on the participant’s
future exercise of (or failure to invoke) the power to designate a
new beneficiary directly under the terms of the plan. Thus, if such
a waiver created an “arrangement” assigning or transferring
anything under the statute, the assignor would be blindfolded,
operating, at best, on the fringe of what “assignment” or
“alienation” normally suggests.
The questionability of this broad reading is
confirmed by exceptions to it that are apparent right off the bat.
Take the case of a surviving spouse’s interest in pension benefits,
for example. Depending on the circumstances, a surviving spouse has
a right to a survivor’s annuity or to a lump-sum payment on the
death of the participant, unless the spouse has waived the right
and the participant has eliminated the survivor annuity benefit or
designated a different beneficiary. See
Boggs,
supra, at 843; 29 U. S. C. §§1055(a), (b)(1)(C),
(c)(2). This waiver by a spouse is plainly not barred by the
antialienation provision. Likewise, DuPont concedes that a
qualified disclaimer under the Tax Code, which allows a party to
refuse an interest in property and thereby eliminate federal tax,
would not violate the antialienation provision. See Brief for
Respondents 21–23; 26 U. S. C. §2518. In each example, though,
we fail to see how these waivers would be permis- sible under the
Fifth Circuit’s reading of the statute and regulation.
Our doubts, and the exceptions that call the
Fifth Circuit’s reading into question, point us toward authority we
have drawn on before, the law of trusts that “serves as ERISA’s
backdrop.”
Beck v.
PACE Int’l Union,
551 U. S. 96, 101 (2007).
We explained before that §1056(d)(1) is much like a spendthrift
trust provision barring assignment or alienation of a benefit, see
Boggs,
supra, at 852, and the cognate trust law
is highly suggestive here. Although the beneficiary of a
spendthrift trust traditionally lacked the means to transfer his
beneficial interest to anyone else, he did have the power to
disclaim prior to accepting it, so long as the disclaimer made no
attempt to direct the interest to a beneficiary in his stead. See 2
Restatement (Third) of Trusts §58(1), Comment
c, p. 359
(2001) (“A designated beneficiary of a spendthrift trust is not
required to accept or retain an interest prescribed by the terms of
the trust… . On the other hand, a purported disclaimer by
which the beneficiary attempts to direct who is to receive the
interest is a precluded transfer”); E. Griswold, Spendthrift Trusts
§524, p. 603 (2d ed. 1947) (“The American cases, though not
entirely clear, generally take the view that the interest under a
spendthrift trust may be disclaimed”);
Roseberry v.
Moncure, 245 Va. 436, 439, 429 S. E. 2d 4, 6 (1993)
(“ ‘If a trust is created without notice to the beneficiary or
the beneficiary has not accepted the beneficial interest under the
trust, he can disclaim’ ” (quoting 1 A. Scott & W.
Fratcher, Law of Trusts §36.1, p. 389 (4th ed. 1987) (hereinafter
Fratcher))).
We do not mean that the whole law of
spendthrift trusts and disclaimers turns up in §1056(d)(1), but the
general principle that a designated spendthrift can disclaim his
trust interest magnifies the improbability that a statute written
with an eye on the old law would effectively force a beneficiary to
take an interest willy-nilly. Common sense and common law both say
that “[t]he law certainly is not so absurd as to force a man to
take an estate against his will.”
Townson v.
Tickell, 3 Barn. & Ald. 31, 36, 106 Eng. Rep. 575,
576–577 (K. B. 1819).[
Footnote
6]
The Treasury is certainly comfortable with the
state of the old law, for the way it reads its own regulation “no
party ‘acquires from’ a beneficiary a ‘right or interest
enforceable against the plan’ pursuant to a beneficiary’s waiver of
rights where the beneficiary does not attempt to direct her
interest in pension benefits to another person.” Brief for United
States as
Amicus Curiae 18. And, being neither “plainly
erroneous [n]or inconsistent with the regulation,” the Treasury
Department’s interpretation of its regulation is controlling.
Auer v.
Robbins,
519 U. S. 452, 461
(1997).[
Footnote 7]
The Fifth Circuit found “significant support”
for its contrary holding in the QDRO subsections, reasoning that
“[i]n the marital-dissolution context, the QDRO provisions supply
the
sole exception to the anti-alienation provision,” 497
F. 3d, at 430, a point that echoes in DuPont’s argument here.
But the negative implication of the QDRO language is not that
simple. If a QDRO provided a way for a former spouse like Liv
merely to waive benefits, this would be powerful evidence that the
antialienation provision was meant to deny any effect to a waiver
within a divorce decree but not a QDRO, else there would have been
no need for the QDRO exception. But this is not so, and DuPont’s
argument rests on a false premise. In fact, a beneficiary seeking
only to relinquish her right to benefits cannot do this by a QDRO,
for a QDRO by definition requires that it be the “creat[ion] or
recogni[tion of] the existence of an alternate payee’s right to, or
assign[ment] to an alternate payee [of] the right to, receive all
or a portion of the benefits payable with respect to a participant
under a plan.” 29 U. S. C. §1056(d)(3)(B)(i)(I). There is no
QDRO for a simple waiver; there must be some succeeding designation
of an alternate payee.[
Footnote
8] Not being a mechanism for simply renouncing a claim to
benefits, then, the QDRO provisions shed no light on whether a
beneficiary may waive by a non-QDRO.
In sum, Liv did not attempt to direct her
interest in the SIP benefits to the Estate or any other potential
beneficiary, and accordingly we think that the better view is that
her waiver did not constitute an assignment or alienation rendered
void under the terms of §1056(d)(1).
B
DuPont has three other reasons
for saying that Liv’s waiver was barred by ERISA. They are
unavailing.
First, it argues that even if the
waiver is not an assignment or alienation barred under the terms of
§1056(d)(1), §1056(d)(3)(A) still prohibits it, in providing that
§1056(d)(1) “shall apply to the creation, assignment, or
recognition of a right to any benefit payable with respect to a
participant pursuant to a domestic relations order [that is not a
QDRO].” At the very least, DuPont reasons, Liv’s waiver included a
“recognition” of William’s rights with respect to the SIP benefits.
But DuPont overlooks the point that when subsection (d)(3)(A)
provides that the bar to assignments or alienations extends to
non-QDRO domestic relations orders, it does nothing to expand the
scope of prohibited assignment and alienation under subsection
(d)(1). Whether Liv’s action is seen as a waiver or as a domestic
relations order that incorpor- ated a waiver, subsection (d)(1)
does not cover it and §1056(d)(3)(A) does not independently bar
it.
Second, DuPont relies upon
§1056(d)(3)(H)(iii)(II), providing that if a domestic relations
order is not a QDRO, “the plan administrator shall pay the
segregated amounts (including any interest thereon) to the person
or persons who would have been entitled to such amounts if there
had been no order.” According to DuPont, because the divorce decree
was not a QDRO this provision calls for paying benefits as if there
had been no order. But DuPont has wrenched this language out of its
setting, reading clause (iii) of subparagraph (H) as if there were
no clause (i):
“During any period in which the issue of whether a
domestic relations order is a qualified domestic relations order is
being determined . . . the plan administrator shall separately
account for the amounts (hereinafter in this subparagraph referred
to as the ‘segregated amounts’) which would have been payable to
the alternate payee during such period if the order had been
determined to be a qualified domestic relations order.”
§1056(d)(3)(H)(i).
Thus it is clear that subparagraph (H) speaks of a
domestic relations order that distributes certain benefits (the
“segregated amounts”) to an alternate payee, when the question for
the plan administrator is whether the order is effective as a QDRO.
That is the circumstance in which, for want of a QDRO, clause (iii)
tells the plan administrator not to pay the alternate, but to
distribute the segregated amounts as if there had been no order.
Clause (iii) does not, as DuPont suggests, state a general rule
that a non-QDRO domestic relations order is a nullity in any
proceeding that would affect the determination of a beneficiary.
And of course clause (iii) says nothing here at all; the divorce
decree names no alternate payee, and there are consequently no
“segregated amounts.”
Third, DuPont claims that a plan cannot
recognize a waiver of benefits in a non-QDRO divorce decree because
ERISA preempts “any and all State laws insofar as they may now or
hereafter relate to any employee benefit plan,” with “State law”
being defined to include “decisions” or “other State action having
the effect of law.”[
Footnote 9]
§§1144(a), (c)(1). DuPont says that Liv’s waiver, expressed in a
state-court decision and related to an employee benefit plan, is
thus preempted. But recognizing a waiver in a divorce decree would
not be giving effect to state law; the argument is that the waiver
should be treated as a creature of federal common law, in which
case its setting in a state divorce decree would be only
happenstance. A court would merely be applying federal law to a
document that might also have independent significance under state
law. See,
e.g., Melton v.
Melton, 324 F. 3d
941, 945–946 (CA7 2003);
Clift v.
Clift, 210
F. 3d 268, 271–272 (CA5 2000);
Lyman Lumber Co. v.
Hill, 877 F. 2d 692, 693–694 (CA8 1989).
III
The waiver’s escape from
inevitable nullity under the express terms of the antialienation
clause does not, however, control the decision of this case, and
the question remains whether the plan administrator was required to
honor Liv’s waiver with the consequence of distributing the SIP
balance to the Estate.[
Footnote
10] We hold that it was not, and that the plan administrator
did its statutory ERISA duty by paying the benefits to Liv in
conformity with the plan documents.
ERISA requires “[e]very employee
benefit plan [to] be established and maintained pursuant to a
written instrument,” 29 U. S. C. §1102(a)(1), “specify[ing]
the basis on which payments are made to and from the plan,”
§1102(b)(4). The plan administrator is obliged to act “in
accordance with the documents and instruments governing the plan
insofar as such documents and instruments are consistent with the
provisions of [Title I] and [Title IV] of [ERISA],” §1104(a)(1)(D),
and the Act provides no exemption from this duty when it comes time
to pay benefits. On the contrary, §1132(a)(1)(B) (which the Estate
happens to invoke against DuPont here) reinforces the directive,
with its provision that a participant or beneficiary may bring a
cause of action “to recover benefits due to him under the terms of
his plan, to enforce his rights under the terms of the plan, or to
clarify his rights to future benefits under the terms of the
plan.”
The Estate’s claim therefore stands or falls
by “the terms of the plan,” §1132(a)(1)(B), a straightforward rule
of hewing to the directives of the plan documents that lets
employers “ ‘establish a uniform administrative scheme, [with]
a set of standard procedures to guide processing of claims and
disbursement of benefits.’ ”[
Footnote 11]
Egelhoff v.
Egelhoff,
532 U. S. 141, 148 (2001) (quoting
Fort Halifax Packing Co. v.
Coyne,
482 U. S. 1, 9 (1987));
see also
Curtiss-Wright Corp. v.
Schoonejongen,
514 U. S. 73, 83
(1995) (ERISA’s statutory scheme “is built around reliance on the
face of written plan documents”). The point is that by giving a
plan participant a clear set of instructions for making his own
instructions clear, ERISA forecloses any justification for
enquiries into nice expressions of intent, in favor of the virtues
of adhering to an uncomplicated rule: “simple administration,
avoid[ing] double liability, and ensur[ing] that beneficiaries get
what’s coming quickly, without the folderol essential under
less-certain rules.”
Fox Valley & Vicinity Const. Workers
Pension Fund v.
Brown, 897 F. 2d 275, 283 (CA7
1990) (Easterbrook, J., dissenting).
And the cost of less certain rules would be
too plain. Plan administrators would be forced “to examine a
multitude of external documents that might purport to affect the
dispensation of benefits,”
Altobelli v.
IBM
Corp., 77 F. 3d 78, 82–83 (CA4 1996) (Wilkinson, C. J.,
dissenting), and be drawn into litigation like this over the
meaning and enforceability of purported waivers. The Estate’s
suggestion that a plan administrator could resolve these sorts of
disputes through interpleader actions merely restates the problem
with the Estate’s position: it would destroy a plan administrator’s
ability to look at the plan documents and records conforming to
them to get clear distribution instructions, without going into
court.
The Estate of course is right that this
guarantee of simplicity is not absolute. The very enforceability of
QDROs means that sometimes a plan administrator must look for the
beneficiaries outside plan documents notwithstanding
§1104(a)(1)(D); §1056(d)(3)(J) provides that a “person who is an
alternate payee under a [QDRO] shall be considered for purposes of
any provision of [ERISA] a beneficiary under the plan.” But this in
effect means that a plan administrator who enforces a QDRO must be
said to enforce plan documents, not ignore them. In any case, a
QDRO enquiry is relatively discrete, given the specific and
objective criteria for a domestic relations order that qualifies as
a QDRO,[
Footnote 12] see
§§1056(d)(3)(C), (D), requirements that amount to a statutory
checklist working to “spare [an administrator] from
litigation-fomenting ambiguities,”
Metropolitan Life Ins.
Co. v.
Wheaton, 42 F. 3d 1080, 1084 (CA7 1994).
This is a far cry from asking a plan administrator to figure out
whether a claimed federal common law waiver was knowing and
voluntary, whether its language addressed the particular benefits
at issue, and so forth, on into factually complex and subjective
determinations. See,
e.g., Altobelli,
supra, at 83 (Wilkinson, C. J., dissenting)
(“[W]aiver provisions are often sweeping in their terms, leaving
their precise effect on plan benefits unclear”);
Mohamed
v.
Kerr, 53 F. 3d 911, 915 (CA8 1995) (making
“fact-driven determination” that marriage termination agreement
constituted a valid waiver under federal common law).
These are good and sufficient reasons for
holding the line, just as we have done in cases of state laws that
might blur the bright-line requirement to follow plan documents in
distributing benefits. Two recent preemption cases are instructive
here.
Boggs v.
Boggs,
520
U. S. 833, held that ERISA preempted a state law permitting the
testamentary transfer of a nonparticipant spouse’s community
property interest in undistributed pension plan benefits. We
rejected the entreaty to create “through case law … a new class of
persons for whom plan assets are to be held and administered,”
explaining that “[t]he statute is not amenable to this sweeping
extratextual extension.”
Id., at 850. And in
Egelhoff we held that ERISA preempted a state law
providing that the designation of a spouse as the beneficiary of a
nonprobate asset is revoked automatically upon divorce. 532 U. S.,
at 143. We said the law was at fault for standing in the way of
making payments “simply by identifying the beneficiary specified by
the plan documents,”
id., at 148, and thus for purporting
to “undermine the congressional goal of ‘minimiz[ing] the
administrative and financial burden[s]’ on plan administrators,”
id., at 149–150 (quoting
Ingersoll-Rand Co. v.
McClendon,
498 U. S. 133, 142
(1990)); see
Egelhoff,
supra, at 147, n. 1
(identifying “the conflict between the plan documents (which
require making payments to the named beneficiary) and the statute
(which requires making payments to someone else)”).
What goes for inconsistent state law goes for
a federal common law of waiver that might obscure a plan
administrator’s duty to act “in accordance with the documents and
instruments.” See
Mertens v.
Hewitt Associates,
508 U. S. 248,
259 (1993) (“The authority of courts to develop a ‘federal common
law’ under ERISA … is not the authority to revise the text of the
statute”). And this case does as well as any other in pointing out
the wisdom of protecting the plan documents rule. Under the terms
of the SIP Liv was William’s designated beneficiary. The plan
provided an easy way for William to change the designation, but for
whatever reason he did not. The plan provided a way to disclaim an
interest in the SIP account, but Liv did not purport to follow
it.[
Footnote 13] The plan
administrator therefore did exactly what §1104(a)(1)(D) required:
“the documents control, and those name [the ex-wife].”
McMillan v.
Parrott, 913 F. 2d 310, 312 (CA6
1990).
It is no answer, as the Estate argues, that
William’s beneficiary-designation form should not control because
it is not one of the “documents and instruments governing the plan”
under §1104(a)(1)(D) and was not treated as a plan document by the
plan administrator. That is beside the point. It is uncontested
that the SIP and the summary plan description are “documents and
instruments governing the plan.” See
Curtiss-Wright Corp.,
514 U. S., at 84 (explaining that 29 U. S. C. §§1024(b)(2) and
(b)(4) require a plan administrator to make available the
“governing plan documents”). Those documents provide that the plan
administrator will pay benefits to a participant’s designated
beneficiary, with designations and changes to be made in a
particular way. William’s designation of Liv as his beneficiary was
made in the way required; Liv’s waiver was not.[
Footnote 14]
IV
Although Liv’s waiver was not
rendered a nullity by the terms of §1056, the plan administrator
properly distributed the SIP benefits to Liv in accordance with the
plan documents. The judgment of the Court of Appeals is affirmed on
the latter ground.
It is so ordered.
Footnote 1
The plan states that “[e]xcept as provided by
Section 401(a)(13) of the [Internal Revenue] Code, no assignment of
the rights or interests of account holders under this Plan will be
permitted or recognized, nor shall such rights or interests be
subject to attachment or other legal processes for debts.” App.
50–51. Title 26 U. S. C. §401(a)(13)(A), in language
substantially tracking the text of §1056(d)(1), provides that “[a]
trust shall not constitute a qualified trust under this section
unless the plan of which such trust is a part provides that
benefits provided under the plan may not be assigned or
alienated.”
Footnote 2
The Estate now says that William’s
beneficiary-designation form for the Pension and Retirement Plan
applied to the SIP as well, but the form on its face applies only
to DuPont’s “Pension and Retirement Plan.” App. 62. In the District
Court, in fact, the Estate stipulated that William “never executed
any forms or documents to remove or replace Liv Kennedy as his sole
beneficiary under either the SIP or [a plan that merged into the
SIP].”
Id., at 28. In any event, the Estate did not raise
this argument in the Court of Appeals, and we will not address it
in the first instance. See
Taylor v.
Freeland &
Kronz,
503 U.
S. 638, 645–646 (1992).
Footnote 3
Section 1056(d)(3)(A) provides that the
antialienation provision “shall apply to the creation, assignment,
or recognition of a right to any benefit payable with respect to a
participant pursuant to a domestic relations order, except that
paragraph (1) shall not apply if the order is determined to be a
qualified domestic relations order.”
Footnote 4
Compare
Altobelli v.
IBM
Corp., 77 F. 3d 78 (CA4 1996) (federal common law waiver
in divorce decree does not conflict with antialienation provision);
Fox Valley & Vicinity Constr. Workers Pension Fund v.
Brown, 897 F. 2d 275 (CA7 1990) (en banc) (same);
Keen v.
Weaver, 121 S. W. 3d 721 (Tex. 2003)
(same), with
McGowan v.
NJR Serv. Corp., 423
F. 3d 241 (CA3 2005) (federal common law waiver in divorce
decree barred by antialienation provision).
Footnote 5
Compare
Altobelli,
supra
(federal common law waiver controls);
Mohamed v.
Kerr, 53 F. 3d 911 (CA8 1995) (same);
Brandon v.
Travelers Ins. Co., 18 F. 3d 1321
(CA5 1994) (same);
Fox Valley, 897 F. 2d 275 (same);
Strong v.
Omaha Constr. Industry Pension Plan,
270 Neb. 1, 701 N. W. 2d 320 (2005) (same);
Keen,
supra (same), with
Metropolitan Life Ins. Co. v.
Marsh, 119 F. 3d 415 (CA6 1997) (plan documents
control);
Krishna v.
Colgate Palmolive Co., 7
F. 3d 11 (CA2 1993) (same).
Footnote 6
DuPont argues that Liv’s waiver would have
been an invalid disclaimer at common law because it was given for
consideration in the divorce settlement. But the authorities DuPont
cites fail to support the proposition that a beneficiary’s
otherwise valid disclaimer was invalid at common law because she
received consideration. See
Roseberry v.
Moncure,
245 Va., at 439, 429 S. E. 2d, at 6;
Smith v.
Bank of Del., 43 Del. Ch. 124, 126–127, 219 A. 2d
576, 577 (1966);
Preminger v.
Union Bank & Trust
Co., 54 Mich. App. 361, 368–369, 220 N. W. 2d 795,
798–799 (1974); 4 Fratcher §337.1 (4th ed. 1989); 1 Restatement
(Second) of Trusts §36, Comment
c (1957). It is true that
the receipt of consideration prevents a beneficiary from making a
qualified disclaimer for gift tax purposes, see 26 CFR §25.2518–2
(2008), and there is common law authority for the proposition that
a renunciation by a devisee is ineffective against existing
creditors if “it is shown that those who would take such property
on renunciation had agreed to pay to the devisee something of value
in consideration of such renunciation.” 6 W. Bowe & D. Parker,
Page on Law of Wills §49.5, p. 48 (2005); see also
Schoonover v.
Osborne, 193 Iowa 474, 478–479, 187
N. W. 20, 22 (1922). But at common law the receipt of
consideration did not necessarily render a disclaimer invalid. See
Commerce Trust Co. v.
Fast, 396 S. W. 2d
683, 686–687 (Mo. 1965);
Central Nat. Bank v.
Eells, 5 Ohio Misc. 187, 189–192, 215 N. E. 2d 77,
80–81 (Ohio Prob. Ct. 1965);
In re Wimperis [1914] 1
Ch. 502, 508–510; see also
In re Estate of Baird, 131
Wash. 2d 514, 519, n. 5, 933 P. 2d 1031, 1034, n. 5
(1997). In any event, our point is not that Liv’s waiver was a
valid disclaimer at common law: only that reading the terms of 29
U. S. C. §1056(d)(1) to bar all non-QDRO waivers is unsound in
light of background common law principles.
Footnote 7
It is true that the Government’s position
regarding the applicability of the antialienation provision to a
waiver has fluctuated. The Labor Department previously took the
position that “application of such a federal common-law waiver rule
to pension plans would conflict with ERISA’s anti-alienation
provision.” Brief for Secretary of Labor as
Amicus Curiae
16 in
Keen v.
Weaver, No. 01–0447 (Tex. 2003).
And it likewise asserted that “waiver of pension benefits is
generally impermissible under [§1056(d)(1)].” Brief for Secretary
of Labor as
Amicus Curiae 5 in
In re Estate of
Egelhoff, No. 67626–7 (Wash. 2001). The Labor Department has
reconsidered that view and has now taken the Treasury’s position.
Brief for United States as
Amicus Curiae 20, n. 6.
But “the change in interpretation alone presents no separate ground
for disregarding the [Treasury’s and the Labor] Department’s
present interpretation.”
Long Island Care at Home, Ltd. v.
Coke,
551
U. S. 158, 171 (2007). Nor does the fact that the
interpretation is stated in a legal brief make it unworthy of
deference, as “[t]here is simply no reason to suspect that the
interpretation does not reflect the agency’s fair and considered
judgment on the matter in question.”
Auer, 519 U. S., at
462.
Footnote 8
Even if one understands Liv’s waiver to have
resulted somehow in her interest reverting to William, he does not
qualify as an “alternate payee,” which is defined by statute as
“any spouse, former spouse, child, or other dependent of a
participant who is recognized by a domestic relations order as
having a right to receive all, or a portion of, the benefits
payable under a plan with respect to such participant.” 29 U.
S. C. §1056(d)(3)(K).
Footnote 9
This preemption provision does not apply to
QDROs. See §1144(b)(7).
Footnote 10
Despite our following answer to the question
here, our conclusion that §1056(d)(1) does not make a nullity of a
waiver leaves open any questions about a waiver’s effect in
circumstances in which it is consistent with plan documents. Nor do
we express any view as to whether the Estate could have brought an
action in state or federal court against Liv to obtain the benefits
after they were distributed. Compare
Boggs v.
Boggs, 520
U. S. 833, 853 (1997) (“If state law is not preempted, the
diversion of retirement benefits will occur regardless of whether
the interest in the pension plan is enforced against the plan or
the recipient of the pension benefit”), with
Sweebe v.
Sweebe, 474 Mich. 151, 156–159, 712 N. W. 2d 708,
712–713 (2006) (distinguishing
Boggs and holding that
“while a plan administrator must pay benefits to the named
beneficiary as required by ERISA,” after the benefits are
distributed “the consensual terms of a prior contractual agreement
may prevent the named beneficiary from retaining those proceeds”);
Pardee v.
Pardee, 2005 OK CIV APP. 27, ¶¶20, 27,
112 P. 3d 308, 313–314, 315–316 (2004) (distinguishing
Boggs and holding that ERISA did not preempt enforcement
of allocation of ERISA benefits in state-court divorce decree as
“the pension plan funds were no longer entitled to ERISA protection
once the plan funds were distributed”).
Footnote 11
We express no view regarding the ability of a
participant or beneficiary to bring a cause of action under 29 U.
S. C. §1132(a)(1)(B) where the terms of the plan fail to
conform to the requirements of ERISA and the party seeks to recover
under the terms of the statute.
Footnote 12
To qualify as a QDRO, a divorce decree must
“clearly specif[y]” the name and last known mailing address of the
participant and the name and mailing address of each alternate
payee covered by the order; the amount or percentage of the
participant’s benefits to be paid by the plan to each such
alternate payee or the manner in which such amount or percentage is
to be determined; the number of payments or period to which the
order applies; and each plan to which such order applies.
§1056(d)(3)(C). A domestic relations order cannot qualify as a QDRO
if it requires a plan to provide any type or form of benefit, or
any option, not otherwise provided under the plan; requires the
plan to provide increased benefits; or requires the payment of
benefits to an alternate payee that are required to be paid to
another alternate payee under another order previously determined
to be a QDRO. §1056(d)(3)(D). A plan is required to establish
written procedures for determining whether a domestic relations
order is a QDRO. §1056(d)(3)(G)(ii).
Footnote 13
The Estate does not contend that Liv’s waiver
was a valid disclaimer under the terms of the plan. We do not
address a situation in which the plan documents provide no means
for a beneficiary to renounce an interest in benefits.
Footnote 14
The Estate also contends that requiring a
plan administrator to distribute benefits in conformity with plan
documents will allow a beneficiary who murders a participant to
obtain benefits under the terms of the plan. The “slayer” case is
not before us, and we do not address it. See
Egelhoff v.
Egelhoff,
532 U. S. 141, 152 (2001) (declining
to decide whether ERISA preempts state statutes forbidding a
murdering heir from receiving property as a result of the
killing).
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