In the Matter of Isely

Summary

The court held that federal law does not preempt the Estate’s post-distribution breach of contract action seeking to enforce a divorce property settlement agreement concerning a Thrift Savings Plan account. FERSA’s purposes include retirement-plan administration, funding, portability, employee options, workforce development, savings, and disability protection, none of which are materially impaired by enforcing the former spouse’s contractual promise after the government has distributed the funds. The court also held that FERSA’s anti-assignment provisions protect funds held in the plan and do not bar a damages action concerning funds already distributed.