Same-sex couples gain pension protections

The Human Rights Campaign is celebrating two provisions of the new Federal Pension Protection Act, which President Bush signed into law last week. The two provisions will extend pension protections for same-sex couples (and other non-married beneficiaries) that were previously reserved for married couples only.

The first provision allows a surviving same-sex partner to transfer the deceased's retirement benefits into an IRA. Previously, non-legally married beneficiaries had to immediately withdraw all benefits in a lump sum payment and incur huge tax penalties.

The second provision allows same-sex couples to dip into retirement funds for qualifying medical or financial emergencies; previously, these funds could only be drawn down by spouses or employees' dependents.

It all sounded great until I read the White House's press release regarding the new law, after which I did grow a little squeamish. No mention of expanded protections for non-married beneficiaries and plenty about building a society of ownership and financial independence. Also, the new law will affect only those same-sex couples lucky enough to have access to retirement funds.

Still, as long as we're going to have pensions and IRAs and 401(k)s, this law is a great step towards bringing pension laws into the realm of fairness and equality. What's as important as the gains for GLBT Americans, though, is that the new law also applies to non-romantically linked beneficiaries -- which I see as part of a long, crucial struggle to divorce financial relationships from any form of sanctioned romantic ones.