Sections Contest Property disposition Common types Other types Governing doctrines An Anti-alienation clause is a provision in the governing document for an arrangement such as a trust that specifies that the beneficial or equitable owner of the property held in that arrangement cannot transfer the interest to a third party.
The exception is recognized to benefit minors, incompetents, and trust beneficiaries that may otherwise behave as a spendthrift would.
The anti-alienation provisions require these trusts to prohibit the alienation or assignment of pension benefits to anyone other than the affected participant in the plan, or his/her designated beneficiaries.
[2] The anti-alienation section of ERISA was enacted in 1974 to prevent workers from giving away improvidently their pension benefits to creditors.
[3] The most important exception is in divorce and child support cases, where state courts have held that “qualified domestic relations orders (QDROs)” can alienate pensions.