Equality in steps

In the midst of a bitter and divisive political climate, something amazing happened on Thursday, August 17, for gay, lesbian, bisexual, and transgender families. The Pension Protection Act became law. Now, a pension reform bill may not immediately be something you would tie to our movement, but this particular law is important because it contains two hard-fought HRC-backed provisions.

Significant progress on any issue in Congress does not happen quickly. Our pension reform victory was no different. For the past four years, Human Rights Campaign worked tirelessly to educate members of Congress about why these provisions are so important to our community.

This Act is important because it contains two provisions for which we had lobbied intensely before securing their inclusion. Basically, these two provisions ensure that the U.S. tax code in times of emergencies is fairer to more Americans, including members of the LGBT community, and puts us on a more equal footing with other couples. Here's how these provisions can impact the lives of LGBT Americans:

The first provision, called "Non-Spousal Rollover" allows the transfer of an individual's retirement plan benefits such as a 401(k) to an Individual Retirement Account (IRA) for a non-spouse beneficiary, which includes a domestic partner, sibling, parent, cousin or anyone else when the individual dies. In the past, unless you were the legally recognized spouse of the deceased, you were forced to withdraw the amount as a lump sum and you faced immediate tax penalties which would eat away at the savings amount intended for retirement.

The second provision, known as "Hardship Distribution" allows individuals who list their same-sex partner or other non-spouse 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, the federal law only permitted such withdrawals for employees' legally recognized spouses or dependents.

It is up to you to be sure that your loved one is covered. In order to benefit from these laws, you must designate your partner as the beneficiary of your 401(k) plan. If you haven't done so, contact your employer's benefits coordinator and fill out a beneficiary designation form. Otherwise, your loved one will not be covered. For more information, visit our Web site at www.hrc.org/pensionbill.

One day, we'll probably look back and think that these two provisions seem modest compared to the total equality we will eventually have for our families. But today, we celebrate this victory for what it is--a step toward fulfilling the American promise of equal protection and equal treatment.