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Child Support Order for Disability Payments


Guest Benefitsesq

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Guest Benefitsesq

I just received a child support income withholding order from a state agency. We are a welfare fund and the participant is currently receiving a disability check. Our plan doc has an anti-assignment/anti-garnishment clause. Does this provision trump the child support order? It seems like it would be against public policy but I cannot find anything out there on the issue.

Does any one have any insight?

Thank you.

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I just received a child support income withholding order from a state agency. We are a welfare fund and the participant is currently receiving a disability check. Our plan doc has an anti-assignment/anti-garnishment clause. Does this provision trump the child support order? It seems like it would be against public policy but I cannot find anything out there on the issue.

Does any one have any insight?

Thank you.

Section 42 USC 666(a) of the Social Security law requires that all states enact laws auathorizing state agencies to collect back child support from virtually all sources of an employee's income, including retirement plans and disability benefits (see 666(b)(8)). The purpose of the stature is to reduce the amount of federal welfare benefits provided to states under aid to families with dependent children. There are DOL opinion letters (2002-03A) which allow the assignment of such benefits under procedures similar to QDROs. However 42 USC 666 is not a QDRO because it is not issued under a divorce decree.

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