News Bites: Worker, Retiree and Employer Recovery Act of 2008 and what it means to same-sex partners
Thanks to Mombian for pointing out that Bush signed a gay rights bill:
Call it a Christmas present for gay and lesbian couples. President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 (WRERA) two days before Christmas. The new law makes it mandatory for businesses to roll over retirement benefits to a same-sex partner in the event of the employee’s death.
Previously, employers could decline and surviving same-sex partners would have to pay tax on the inheritance of the deceased partner’s retirement savings. Legally married heterosexual couples automatically avoid that tax penalty.
The HRC followed up with these statements:
‘œThis legislation secures much-needed protection for lesbian and gay couples,’ said Human Rights Campaign President Joe Solmonese. ‘œOur community faces unique challenges in preparing for retirement because we are denied Social Security spousal and survivor benefits. Protecting our hard-earned retirement savings is even more crucial to us, and until now, the tax code made it that much harder.’
‘œThis is progress toward eliminating the more than 1,000 inequities that our families face under federal law,’ continued Solmonese. ‘œU.S. employers should make the rollover provision available as quickly as possible’”before the 2010 deadline’”and LGBT workers should ensure their partners and children are designated as beneficiaries.’
HRC also posted an instructional resource for employers about the WRERA.
Yes, this is progress but we’re still 1000+ steps away from equality!
Photo credit: stock.xchng.
Wow, how did I miss this?! The tax consequences of death is one of the few tangible benefits that married couples get from the federal government. My 401k being taxed when left to my partner was the one big issue that really concerned me, since I have a substantial amount of money in that vehicle. This is awesome!