Abstract

http://ssrn.com/abstract=2306911
 


 



The Supreme Court Finds Federal Life Insurance Rules Preempt State Law in Hillman v. Maretta and Reinforces ERISA Protections for ERISA Plan Participants and Beneficiaries


Albert Feuer


Law Offices of Albert Feuer

August 5, 2013

Tax Management Weekly Report, Vol. 32, No. 31, p. 1040, 2013

Abstract:     
The Supreme Court recently decided in Hillman v. Maretta, that state law and state equitable remedies may not be used to wrest benefits from the duly designated benefits under the Federal Employees Group Life Insurance Act (“FEGLIA”). The reasoning of the decision and the structure of the FEGLIA suggests that a state law ownership claim or associated state court order (other than one complying with plan terms), whether based on domestic relations law, property disposition on death law, contract law, constructive trust law, unjust enrichment, or other equitable principles, is preempted if it attempts to (1) compel a participant in an ERISA plan or in the Federal Thrift Savings plan to choose a beneficiary specified under state law, (2) punish the participant’s estate if the duly designated beneficiary was not such specified beneficiary; or (3) prevent a duly designated beneficiary from receiving or keeping the designated benefits. These conclusions are supported by the ringing endorsement of Hillman and its reasoning in the discussion of federalism principles within the Supreme Court’s majority opinion of U.S. v. Windsor.

Number of Pages in PDF File: 11

Keywords: Pension, Life Insurance, ERISA, FEGLIA, preemption, equitable remedies, domestic relations, constructive trust

JEL Classification: G22, G23, H55, J12, J26, J32, J33, K12, K19, M52

Accepted Paper Series





Download This Paper

Date posted: August 7, 2013 ; Last revised: August 26, 2013

Suggested Citation

Feuer, Albert, The Supreme Court Finds Federal Life Insurance Rules Preempt State Law in Hillman v. Maretta and Reinforces ERISA Protections for ERISA Plan Participants and Beneficiaries (August 5, 2013). Tax Management Weekly Report, Vol. 32, No. 31, p. 1040, 2013. Available at SSRN: http://ssrn.com/abstract=2306911

Contact Information

Albert Feuer (Contact Author)
Law Offices of Albert Feuer ( email )
Suite 7M
110-45 71st Road
Forest Hills, NY 11375
United States
718-263-9874 (Phone)
718-575-0006 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 422
Downloads: 93
Download Rank: 167,993

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.297 seconds