Yesterday, Law.com reported on a federal district court case in Texas where the judge dismissed a claim by Continental Airlines that several of its pilots had engaged in "sham" divorces to allow them to access their pension plans early. This decision was based on ERISA, the federal law which govern employee benefits. The judge held that the pension plan must honor the domestic relations orders (DRO) and had no authority to determine the validity of the divorce. While many would questions the ethics of anyone divorcing for financial gain, the article also mentions the problems which would arise if the plan administrators were allowed to question the underlying divorce. This is probably a result that is correct in the law, but still feels somehow wrong.
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