I am getting contradicting information in regards to Domestic Partners and self-insured benefit plans. Our company is in 43 states and has just found that one of our stores is in a city where a new law was passed requiring benefit coverage for domestic partners.
I have been hearing two stories. One that we must allow domestic partners to participate in the plan and another is that because our self-insured plan qualifies under ERISA, we do not have to comply with the city law.
What you know about this?

I think you need to get a copy of whatever law was passed in that city. Generally, I think it is correct that if you are a self-funded plan, you do not have to go along with that local law. My guess is that the city law applies to the city as employer and any other company wishing to do business with the city as a contractor.

As what jeanine indicated. This is especially true when dealing with cities in California. Nonetheless, even if you have a self-insured plan and the letter that you received is basically a "back scratching" initiative, you will need to add the domestic partner provision if you expect to do business with that company or city.

Air Transport Assoc. of America v. City and County of San Francisco, ND Cal 1998, 992 F. Supp. 1149 dealth with mandated coverage for domestic partners. The court held that the law was preempted by ERISA.