Spousal Benefits At Risk?
By: Source: AARP Bulletin Today Date Posted: 2003-06-01 10:31:00-04:00
The federal law protecting pension benefits for widowed spouses appears to be at risk in Congress. A little-noticed provision in a proposed bill before the House could undercut women's pension rights.
Sponsored by Reps. Rob Portman, R-Ohio, and Ben Cardin, D-Md., the bill (H.R. 1776) could result in rules that would allow workers to circumvent the law preventing them from taking benefits only for themselves, unless the spouse approves.
Under the 1984 pension law, a worker can exclude his or her spouse—and take a larger pension—only if the spouse signs a waiver in front of a notary or pension plan administrator. If the spouse declines, the worker gets a smaller pension but one that provides benefits for the widowed spouse if the worker dies first.
Under the "paperless technologies" provision of the new bill, the government could allow a worker to use the spouse's password to "consent" by computer or phone.
"Under this scenario," says AARP legislative representative Evelyn Morton, "it would be difficult for the spouses to protect their rights."
The provision was drafted in response to industry requests to streamline pension administration. Neither congressman's staff could be reached for comment at press time.
AARP supports parts of the bill but opposes weakening protections for spousal consent. A House committee will consider the bill this summer.
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