court-ordered garnishment

[AlbanyConsultant]

A client just sent me a Final Order of Garnishment from a US District Judge, demanding $X from a participant account for restitution and court-ordered interest.  The order names the Participant as Defendant and the recordkeeper/custodian as "Garnishee".  Nowhere does it mention the plan name.

Anyone have any experience with this?  I get that it's not the same as a QDRO, but shouldn't there at least be some basic standards it has to meet?  I don't want to do anything that will put the plan sponsor in a bad position, either by paying out without proper due diligence or by rejecting it without good reason.

Thanks!

[Carol V. Calhoun]

Garnishment of a participant's account outside of a QDRO is allowed under ERISA only for federal tax debts or court-ordered criminal restitution. If it doesn't say it's for one of those things, I'd respond that this is a qualified plan which is forbidden from complying except in those situations. 

[blguest]

Second Carol's first sentence, though you may want to send it to plan counsel before responding to it. FWIW, there are two recent appointments on the bench at the USDC Albany, both magistrates, both with prosecutorial backgrounds, if that's where the order came from.