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Retirement plan administrator must ascertain marital status before paying benefits

Where there is conflicting information about a deceased retirement plan participant's marital status, it is unreasonable for a plan administrator to disburse funds until the conflict is resolved, a federal appeals court has ruled (Smith v. New Mexico Coal 401(k) Personal Savings Plan (10th Cir. June 9, 2009)). The US Court of Appeals for the Tenth Circuit found that a plan administrator acted arbitrarily and contrary to plan procedures when it paid benefits to a deceased participant's children after learning that legal proceedings on the participant's marital status were ongoing.  (Select News, 12 Jun 2009)


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