News
2006-08-19
Gays included in
new federal pension law
Gay couples get
pension equality
President Bush
signed the federal Pension Protection Act on Thursday,
A national gay
rights group hailed President Bush's signing on Thursday
of the federal Pension Protection Act, a new law that
includes two provisions that extend important
financial protections to more Americans, including
same-sex couples. "This is an incredibly exciting
victory that will be helpful to millions of gay, lesbian,
bisexual, and transgender families," said Joe
Solmonese, president of Human Rights Campaign.
Solmonese noted
that HRC fought hard to have the two provisions included
in the final version of the measure. "Basically, what this
means is that these two provisions ensure that the
U.S. tax code, in times of emergencies, is fairer to
more Americans, including our community," he said,
"and puts us on a more equal footing with other
couples."
The first
provision, called "Non-Spousal Rollover," allows for
transfer upon an individual's death of their retirement
plan benefits, like a 401(k), to an Individual
Retirement Account (IRA) for a nonspouse beneficiary,
like a domestic partner, sibling, or any other
designated person. In the past, gay partners were
forced to withdraw the amount as a lump sum and faced
immediate tax penalties, which diminished savings
intended for retirement.
The second
provision, known as "Hardship Distribution," allows
individuals who list their same-sex partner or other
nonspouse beneficiary under a 401(k) plan the ability
to tap into their retirement funds in the case of
certain medical or financial emergencies of the
beneficiary. In the past, federal law permitted such
withdrawals only for employees' legally recognized
spouses or dependents. (The Advocate)
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