UPDATE: Defined benefit retirement plans must also recognize same-sex marriages

Posted on 05 Dec 2014 at 2:40pm
David-Henderson

David Mack Henderson

In the Dec. 5 issue of Dallas Voice, we reported on the discovery by Resource Center Communications and Advocacy Manager Rafael McDonnell and Fairness Fort Worth President David Mack Henderson that the Internal Revenue Service requires that defined contribution retirement plans — such as 401(a), 401(k) and 125 cafeteria plans —  recognize same-sex spouses of plan members if the couple were married in a jurisdiction that legally recognizes such marriages — even if the couple lives in a state that bans marriage equality.

Henderson has since discovered that defined benefit plans must also recognize same-sex spouses:

“From Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married Under State Law:
Q17. What are some examples of the consequences of these rules for qualified retirement plans?
A17. The following are some examples of the consequences of these rules:
Plan A, a qualified defined benefit plan, is maintained by Employer X, which operates only in a state that does not recognize same-sex marriages. Nonetheless, Plan A must treat a participant who is married to a spouse of the same sex under the laws of a different jurisdiction as married for purposes of applying the qualification requirements that relate to spouses.”

A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending directly on individual investment returns. A defined contribution plan, on the other hand, does not promise a specific amount of benefits at retirement. In these plans, the employee or the employer (or both) contribute to the employee’s individual account under the plan, sometimes at a set rate.

You can also find information on the Equality Texas website.

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