Unsigned Form Throws Disputed 401(k) Assets to
Participant's Son
June 10, 2008 (PLANSPONSOR.com) - A federal judge in
Florida has ruled that a deceased 401(k) plan participant's
girlfriend is not entitled to half the approximately $450,000
in his account because he did not sign the designation form
naming her a partial beneficiary.
U.S. District Judge
John Antoon II of
the U.S. District Court for the Middle District of
Floridaawarded the disputed benefits instead to the
participant's son because the participant's 2001
designation of his girlfriend and daughter as 50/50
beneficiaries was not properly executed. In reaching that
conclusion, Antoon ruled that an earlier designation form
signed byBuddy Coxin 1990 naming his son, Thomas Cox, as his
beneficiary was the only valid designation at the time of
the participant's death.
In his decision, Antoon rejected girlfriend Jerri
L. Dunn's contention that the plan did not require
that a beneficiary designation be signed to be
effective.
"[T]he very argument that a signature is not
required merely begs the question of whether (Cox) is the
one who made the designation on the second form. Anyone
could fill out a form and send it in naming a
beneficiary; without a signature, the identity of the
'designator' cannot be conclusively determined.
The lack of a signature is not a minor technicality that
should be lightly overlooked or excused," Antoon
asserted.
The court went on to reject Dunn's contention
that the 2001 beneficiary designation form should be
given effect under the doctrine of substantial
compliance.
In a second decision Antoon threw out Dunn's
separate lawsuit alleging that Harris and Fidelity
breached their Employee Retirement Income Security Act
(ERISA) fiduciary duties through their handling of the
unsigned beneficiary designation form.
The case is
Dunn v. Cox,
M.D. Fla., No. 6:05-cv-1388-Orl-28DAB, 6/6/08.
Fred Schneyer
editors@plansponsor.com