Common use of Anti-Assignment Clause in Contracts

Anti-Assignment. Except as may be necessary to fulfill a qualified domestic relations order within the meaning of ERISA Section 206(d)(3)(B)(i), none of the benefits or rights of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or equitable process available to any creditor of the Participant and his Beneficiary. Neither the Participant nor his Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he may expect to receive, contingently or otherwise, under the Plan, except the right to designate a Beneficiary to receive death benefits provided hereunder. Notwithstanding the preceding, the benefit payable from a Participant’s Account may be reduced, at the discretion of the administrator, to satisfy any debt or liability to the Employer; provided that such reduction does not result in a prohibited acceleration of payments under Reg. Sec. 1.409A-3(j). A domestic relations order shall not be treated as a qualified domestic relations order for purposes of this Plan, unless the following conditions are satisfied: (a) Payments to the alternate payee must commence on either (i) the last business day of the month in which occurs the 60th day following the date the domestic relations order is furnished to the Plan Sponsor, or (ii) the last business day of January beginning in the calendar year following the date the domestic relations order is furnished to the Plan Sponsor. (b) Payments to the alternate payee must be in the form of a lump sum distribution or an annual installment payment method available to Participants in the Plan. (c) If the domestic relations order provides the alternate payee with an election with respect to the time of payment, but the alternate payee does not elect a time of payment using procedures established by the Plan prior to the last business day of the month in which occurs the 60th day following the date the domestic relations order is furnished to the Plan Sponsor, payment to the alternate payee shall be made or commence on the last business day of the month in which occurs the 60th day following the date the domestic relations order is furnished to the Plan Sponsor. (d) If the domestic relations order provides the alternate payee with an election with respect to the form of payment, but the alternate payee does not elect a form of payment using procedures established by the Plan prior to the last business day of the month in which occurs the 60th day following the date the domestic relations order is furnished to the Plan Sponsor, payment to the alternate payee shall be in a lump sum distribution.