San Diego State University
Domestic Partnership Benefits Coverage

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ELIGIBILITY

Same-sex domestic partnerships, between persons who are both at least 18 years of age, and opposite sex domestic partnerships, when one or both persons are age 62 and over, are eligible to register a domestic partnership with the Secretary of State and receive health, dental and vision benefits from the California State University (CSU). For detailed criteria, see Section 297 of the Family Code.

Individuals do not have to actually receive a Social Security benefit in order to be eligible for domestic partner benefits. The criteria for registering individuals age 62 and over who meet the eligibility criteria under Title II or Title XVI of the Social Security Act is determined by the Secretary of State.

PROCESS OVERVIEW

Division 2.5 of the Family Code requires the following actions for a domestic partner to be enrolled in a CalPERS health benefits plan: DECLARATION OF DOMESTIC PARTNERSHIP

Domestic partnerships that match the eligibility requirements must register with the Secretary of State. The employee must submit a Declaration of Domestic Partnership form, (Family Code Section 298), to the Secretary of State for certification and the form must be stamped by the Secretary of State in order to be valid for benefits enrollment.

ENROLLMENT

Employees may request domestic partner enrollment after the employee receives a Declaration of Domestic Partnership form from the Secretary of State. CalPERS uses the same enrollment policies for domestic partnerships as are currently used for traditional marriages. The eligibility and enrollment rules are stated in the Public Employees' Medical and Hospital Care Act (PEMHCA) and regulations governing the CalPERS Health Program.

Enrolling: Individuals who are enrolled in a CalPERS health plan may add domestic partners and children to their health plan but cannot change plans at this time. Health plan changes will be allowed during the normal Open Enrollment period each Fall. To enroll the employee must submit a Health & Dental Benefits Enrollment/Change Form to the SDSU Benefits Office. The employee must also provide a copy of the Declaration of Domestic Partnership form and the two liability forms. If applicable, the employee must complete the Affidavit of Eligibility for Economically Dependent Children, HBD-35 and/or CSU Domestic Partner Tax Dependent Certification Form.

Effective Date of Domestic Partner Enrollment: Domestic partner enrollment documents submitted within 60 days of the domestic partner registration will provide health benefit coverage effective on the first day of the month following the month in which the completed enrollment documents are received in the SDSU Benefits office. Domestic partner enrollments submitted later than 60 days after domestic partner registration are considered late enrollments. The employee/dependents must wait 90 days from the date the enrollment request was received by the SDSU Benefits office. The effective date of coverage is the first day of the month following the 90-day waiting period. If the late enrollment is made during the Open Enrollment period, the effective date of coverage is the first of the month following the 90-day waiting period or the Open Enrollment effective date, whichever is earliest.

TAXATION OF DOMESTIC PARTNERSHIP BENEFITS

Adding a domestic partner to your benefits will result in taxable income to the employee for Federal tax purposes only. The Internal Revenue Service has ruled that the actual cost of the domestic partner benefit is taxable income to the employee. Tax dependent status of a domestic partner is for the entire calendar year. If an employee eliminates the domestic partner's tax dependent status, the State Controller's Officer will recompute the imputed taxes for the entire calendar year and make the appropriate adjustment in the employee's pay warrant.

Designation:  To designate the employee's domestic partner as a tax dependent, the employee must submit a CSU Domestic Partner Tax Dependent Certification Form to the SDSU Benefits Office. If the domestic partner no longer qualifies as a tax dependent, the employee must submit a CSU Domestic Partner Tax Dependent Cancellation Form to the SDSU Benefits Office. Proof substantiating tax dependency may be required.

Tax Determination:  To arrive at the actual cost of this benefit, the California State University has examined the premium structure for health, vision and dental benefits.

Health and Dental:  For health and dental, CSU has the following structure:

For these two benefits, the taxable income of the domestic partner benefit will be the cost difference between the employee only and the employee plus one dependent premium rate. This approach recognizes the value of adding one dependent, using a single employee as the base line. The State Controller's Office will use a flat tax rate of 25% federal, 6.2% Social Security and 1.45% Medicare to withhold taxes on the value of the benefits.

The taxable value of the benefit will be constant as shown in the following examples:

Vision:  For vision, the cost is a flat rate, regardless of the number of dependents. Adding domestic partners to the program will have a negligible impact on the premium. As a result, there is no taxable income to you for adding a domestic partner to your vision insurance plan.

Tax Withholding Method:  The Controller's Office will implement a "look back" method for tax withholding on the domestic partner benefit beginning with the previous month. Key points are:

EXAMPLE:  Federal taxes for April will be withheld from the May master payroll warrant. Taxable income will be reported on your annual W-2.

FINANCIAL LIABILITY OF EMPLOYEE WITH DOMESTIC PARTNER

The enrolled individual is responsible for maintaining accurate enrollment status in the CalPERS health program. Failure to notify the employer or CalPERS of the termination of the domestic partnership shall make the enrollee liable for any and all additional expenses incurred by the domestic partner and/or his or her dependents. Two forms must be submitted to SDSU Benefits Office:

CHILDREN OF DOMESTIC PARTNERS

Coverage:  Children of domestic partners whom an individual wishes to enroll must meet eligibility requirements established under PEMHCA regulations regarding economically dependent children. The member must submit to the SDSU Benefits Office an Affidavit of Eligibility for Economically Dependent Children asserting a parent-child relationship exists.

Termination of Coverage:   Coverage of children of Domestic Partners will be terminated for any of the following reasons:

TERMINATION OF DOMESTIC PARTNERSHIP BENEFITS

The enrolled individual or employer must cancel the health benefits coverage of the domestic partner when the domestic partnership terminates or when the domestic partners no longer share a common residence. Upon termination of the domestic partner's coverage, coverage for children of domestic partners, enrolled as economically-dependent children under the domestic partnership, must also be terminated. Cancellation of domestic partnership coverage can be accomplished by submitting a Health & Dental Benefits Enrollment/Change Form to the SDSU Benefits Office. The Secretary of State requires submission of notice of Termination of Domestic Partnership form, (Family Code Section 299).

CONTINUATION OF BENEFITS (COBRA ENTITLEMENT)

The law does not establish continued benefit rights (survivor entitlement) for the domestic partner in the even of the death of the member. CalPERS will offer the Consolidated Omnibus Reconciliation Act (COBRA) election in the event of termination of the domestic partnership or death of the enrollee under the same conditions used for traditional marriages. If you have continuation needs, contact the SDSU Benefits Office.

CONTACT US

Any questions or help regarding domestic partners may be obtained by contacting the San Diego State University Center for Human Resources Benefits Office (telephone 619-594-6404, Option 2 - Benefits) located in the Extended Studies Center, Room 406.

Revised: 5/24/05 (sjm)
For more information email SDSU Benefits