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On June 10, 2025, the United States Court of Appeals for the Second Circuit held that the anti-alienation provision of ERISA (29 U.S.C. § 1056(d)(1)) preempts application of New York Civil Practice Law and Rules ("NYCPLR") § 5205(c)(5), which would otherwise allow enforcement of a judgment against retirement plan account additions made within ninety days before a claim.
In Office Create Corporation v. Planet Entertainment, LLC (Case: 24-1879), Office Create Corporation ("Office Create") appealed the District Court's denial of its objection to a claim of exemption by Steve Grossman and Planet Entertainment, LLC, for certain retirement plan accounts. Office Create argued that New York's NYCPLR §5205(c)(5), which allows enforcement against retirement plan account additions made within ninety days before a claim, permitted restraining the retirement plan accounts because the retirement plan accounts were established within such ninety-day window. The appellees, Planet Entertainment and Steve Grossman, countered that ERISA's anti-alienation provision (29 U.S.C. §1056(d)(1)) preempts this New York State law, protecting the retirement plan accounts from collection.
The District Court ruled that ERISA preempts NYCPLR §5205(c)(5), as the retirement plan accounts in question were pension plans subject to ERISA, and it denied Office Create's objection. On appeal, the Second Circuit affirmed, finding that ERISA's anti-alienation provision, which prohibits assignment or alienation of pension plan benefits, clearly conflicts with NYCPLR §5205(c)(5), preempting the state law, and the District Court's judgment was affirmed.
Planet Entertainment and Grossman are represented by Jamie M. Brickell of Pryor Cashman LLP.
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