Domestic Partner Benefits

[Guest lemarkley]

Does anyone offer Domestic Partner benefits? Do you strictly for your health plan or do you offer other benefits for domestic partners? How do you define "domestic partner"? Do you include both same-sex and opposite sex partners? How well has it been received by your employees? We are thinking of offering DP benefits and would like any feedback good or bad. Thanks.

[jsb]

Yes, we just began offering DP benefits as of 7/1/03. For us, a DP is as defined by Section 297 of the California Family Code (link to codes at www.senate.ca.gov). No employer contribution can be used to purchase DP coverage. Imputed income if the employee already has family coverage and is adding a DP (we have a 2-tier rate structure). Out of 14,000 enrollees, only 11 DP's were added at our special enrollment in May.

[Guest marie567]

We offer domestic partner benefits for same sex and opposite sex partners. It's used by about 2% of our population. It is perceived as very favorable by our employees, even if not that many employees fall in these categories.

[Guest rbellinger]

How do you calculate the imputed income for domestic partner coverage? Is it the difference between the employer cost and the pre-tax part of the employee's cost? Or is it the difference between the employer cost and the total premium the employee is paying (both the pre-tax portion for the employee's portion & the after-tax portion for the partner's coverage)?

Say the employer cost is $100. Single coverage is $10 and EE+spouse is $30. If the employee enrolls in EE+spouse with a domestic partner, the employee pays $10 pre-tax and $20 after-tax. Is the imputed income the $90 or $70?

Thanks.

[Guest jreddi]

The IRS leaves it up to employers to determine the "fair market value" of the benefits extended to DPs. We have figured the FMV to be the difference between the premium charged by the carrier for EE + SP coverage and the premium charged by the carrier for EE only coverage. The difference is then added to the EEs income and taxed.

Further, we have determined that the EE + DP portion of the premium share can only be taken on a post-tax basis, while the EE only portion of the premium share can be taken on a pre-tax basis. E.G., if the EE + DP total premium share is $50.00 and the EE Only portion is $10.00, we post tax the $40.00 premium share deduction.

We offer DP coverage across the board on medical, dental, vision and voluntary life insurance. We also offer ER paid dependent life to the DP if the EE has chosen EE+DP coverage on the medical insurance.

We define a DP as either same or opposite sex, one who lives in the same household as the EE and who is financially interdependent with the EE. We further state -- so that the EE couldn't say his grandmother was his DP-- that they cannot be related in such a way to forbid marriage.

[Guest eafredel]

Several of my clients offer domestic partner benefits. Although most clients limit coverage to health and dental benefits, some employers also provide life insurance coverage and one employer has specific pension benefits for domestic partners. Most of my clients provide coverage for both same sex and opposite sex partners. An eligible employee is required to provide a certificate of domestic partnership, typically requiring the identification of the partner and a shared residence. The benefits are well received by most employees. Most of the employers view domestic partner benefits as a significant element in demonstrating their commitment to diversity in the workplace.