NY Man’s Pension Fund Safe From Garnishment Under Federal Law

A New York man’s retirement accounts can’t be used to satisfy part of a $22 million arbitration award, despite a state law that would allow it, the Second Circuit ruled Tuesday.

The panel concluded the anti-alienation provision in the federal Employee Retirement Income Security Act preempts New York law that allows money added to a retirement account 90 days before a claim was filed to be used to satisfy a money judgment.

“Congress’s ‘clear and manifest purpose’ in enacting ERISA’s anti-alienation provision was to protect pension funds, including against collection by creditors,” the US Court of Appeals for the Second ...