9th Circuit Finds QDRO Valid for 30-year
Quasi-marriage
January 13, 2009 (PLANSPONSOR.com) - The 9th U.S.
Circuit Court of Appeals has determined that a pension plan
must recognize a qualified domestic relations order (QDRO)
under Washington state law because the payee maintained a
"quasi-marital" relationship with the plan participant for
more than 30 years.
The court agreed with a federal district court in
Washington that the Order issued by the Superior Court of
King County awarding Norma Owens a 50% interest in
Phillip R. Owens, Sr.'s pension benefits constituted
a valid QDRO because it relates to "marital property
rights" and Norma qualifies as a
"dependent" of Phillip, and therefore as an
"Alternate Payee."
The 9
th
Circuit pointed out that under the Employee Retirement
Income Security Act (ERISA), a domestic relations order
is issued "pursuant to a state domestic relations law,"
and that ERISA does not explicitly define "marital
property rights." However, the state of Washington's
domestic relations law recognizes quasi-marital
relationships for purposes of property division.
The appellate court rejected the Automotive
Machinists Pension Trust's argument that the federal
Defense of Marriage Act precludes any quasi-marital
relationship from resulting in marital property rights,
saying the Act's legislative history reflects that
Congress was only concerned with same-sex
marriages.
The court also rejected the Pension Trust's
contention that Norma was not an "alternate payee"
because she was not a "spouse, former spouse, child, or
other dependent" as dictated by ERISA. According to the
court, Norma qualifies as an "other dependent" because
she lived with Phillip for 30 years, Phillip was the
primary wage-earner while Norma cared for the house and
their children, and she was listed on the couple's joint
tax returns as Phillip's wife.
In a dissenting opinion, Circuit Judge John T.
Noonan argued that Norma is not considered an "other
dependent" because she is not currently a dependent of
Phillip. Noonan noted that when Congress wanted to refer
to a previous relationship, it used the term "former."
Norma is a former dependent of Phillip, a
situation which is not referenced in federal statue
for QDRO's, he said.
The opinion in Owens v. Automotive Machinists
Pension Trust is
here
.
Rebecca Moore
editors@plansponsor.com