Can a plan administrator require distributions to be made via direct deposit?

[mdm09]

Has anyone seen any authority on whether a plan administrator may require distributions to be made via direct deposit? The anti-alienation regs (sec. 1.401(a)-13) permit direct deposits, but do not specify whether a direct deposit must be initiated by the participant. Also, the protected benefit regs (sec. 1.411(d)-4, Q.1) state that "administrative procedures for distributing benefits" are not protected benefits. Any thoughts on the permissibility of requiring that distributions be made via direct deposit? I am not convinced this is a state law wage issue, and in any event the plan sponsor already requires employees to receive wage payments via direct deposit, so the employer seems to feel there is no problem with state law, at least as regards the wages.

Thank you.

[QDROphile]

Ask the questiion another way. Will an ERISA fiduciary refuse to pay a benefit if a participant refuses to open a bank account for the fund transfer? Will a federal district court judge uphold the fiduciary's refusal to pay?

Or ask the practical question. Will a particpant who wants a distribution make a fuss or just capitulate?