(Washington) A new law signed by President Bush will protect domestic partners who inherit retirement savings.

The Pension Protection Act, or PPA, made it possible for employers to allow any non-spouse beneficiary of an employee’s retirement plan—including an employee’s same-sex partner—to roll inherited retirement benefits directly to an individual retirement account and avoid immediate taxation.

WRERA requires that all employers provide this rollover opportunity to non-spouse beneficiaries.

“This legislation secures much-needed protection for lesbian and gay couples,” said Human Rights Campaign President Joe Solmonese.

“Our 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.”

Before 2007, partners who inherited retirement plan savings typically faced immediate taxation on inherited benefits, unlike opposite-sex spouses, who could roll savings over to an IRA with no tax penalty.

Under the PPA, which came into effect in 2007, qualifying plans could permit any non-spouse beneficiary—including a domestic partner, parent or sibling—to roll over inherited retirement benefits paid as a lump sum directly to an IRA. Qualifying plans include defined benefit plans pensions, 401K plans, employee stock ownership plans, profit-sharing plans, money purchase plans, 403B plans and governmental 457B plans.

But the provision was subsequently interpreted to be optional for employers, meaning each company had to affirmatively adopt this protection for partners under each qualifying plan.

Under the WRERA, which takes effect in January 2010, all qualifying plans that pay lump sum benefits to non-spouse beneficiaries are required to provide the rollover opportunity.

“This is progress toward eliminating the more than 1,000 inequities that our families face under federal law,” said Solmonese.

He also called on employers to make the rollover provision available as quickly as possible and not wait for the 2010 deadline. Solmonese said that LGBT workers should ensure their partners and children are designated as beneficiaries.