Same-Sex Domestic Partner Benefits Policy

Overview

The University of Richmond is pleased to extend benefits to the same-sex domestic partner of a regular full-time faculty or staff member, similar (though not identical) to the benefits extended to the opposite-sex spouse of an employee. The benefit package is presently constrained under federal and state laws regarding tax implications of benefits provided to a same-sex domestic partner, as well as by insurance underwriting requirements. Potential benefits extend only to same-sex domestic partners who are legally prohibited from becoming married in the jurisdiction in which they reside and who otherwise meet the enrollment qualifications summarized below. Unmarried opposite-sex domestic partners of University employees are not eligible for the benefits outlined in this Policy.

Reporting Requirements

1. Status and Declaration

In order to receive benefits for a domestic partner, the employee must complete an Affidavit of Same-Sex Domestic Partnership (attached as Exhibit A to this Policy) that declares the following:

• The employee and the domestic partner consider each other to be life partners;
• The employee and the domestic partner are of the same sex;
• Both the employee and the domestic partner are at least 18 years of age and mentally competent to enter into a contract in the state in which residency is established;
• Neither the employee nor the domestic partner is married to another individual;
• The employee and the domestic partner are each other's sole domestic partner and intend to continue as such indefinitely;
• The employee and the domestic partner are not blood relatives to a degree that would prohibit marriage under the laws of the state of residency;
• The employee and the domestic partner have shared a common household for at least 6 months immediately prior to the date of the Affidavit and intend to do so indefinitely;
• The employee and the domestic partner are financially interdependent, share common necessities of life and are jointly responsible for the common welfare and shared financial obligations of each other.

The University reserves the right to request proof that a partnership meets the residency and financial interdependency eligibility criteria. The University retains the discretion to determine whether an employee has satisfied all of the above conditions and his or her domestic partner is therefore eligible for benefits.

2. Termination of Domestic Partnership

The University's Human Resources Office must be made aware of any change in domestic partner status. An individual's status as an employee's domestic partner will terminate upon receipt by the Human Resources Office of the Statement of Termination of Same-Sex Domestic Partnership (or earlier if the University determines that any of the conditions described above are not satisfied). The completed Statement of Termination of Same-Sex Domestic Partnership (attached as Exhibit B to this Policy) must be provided within thirty-one days of the date any of the above conditions ceases to be satisfied.

Benefits Extended to Same-Sex Domestic Partners

• Health and Dental Coverage
• Flexible Spending Accounts
• Tuition Benefits
• Leave Benefits
• Library and Recreational Facility Privileges
• Employee Assistance Program (EAP)

1. Health and Dental Coverage

The University offers two types of health coverage for its employees and their eligible beneficiaries: (1) HealthKeepers, an Anthem health maintenance organization (HMO); and (2) KeyCare, an Anthem preferred provider organization (PPO). The University also offers a voluntary dental plan. In order for the domestic partner to be covered under the health or dental plan, the employee must be a participant in the plan.

For enrollment in the University's KeyCare plan, there is currently no medical questionnaire and there are no pre-existing condition clauses involved if the employee's domestic partner is qualified for waiver of the same under the terms of the federal Health Insurance Portability and Accountability Act ("HIPAA"). Per "HIPPA" as long as the domestic partner has had continuous health insurance coverage that is certified by the carrier, prior to being enrolled in the University's KeyCare Plan, the pre-existing clause is waived.

Health Coverage for Children/Dependents

As is true for all University of Richmond full-time employees, children of employees may be covered as dependents under the University's health and dental plan, if the employee is legally and financially responsible for the children and their medical care. Children of an employee's domestic partner, for whom the employee is not legally or financially responsible, may not be covered under the University's health plan. If, however, there is a joint adoption relationship or legal guardianship and financial dependence between the employee, the domestic partner and a child, then the child may be covered as a dependent of the employee's under the University's health plan. To enroll children in the University's health plan, the employee must supply the Human Resources Office with the appropriate paperwork (such as birth certificates, adoption records, court-approved guardianship papers or divorce decrees) in order to confirm the employee's financial and legal obligation for the child.

Tax Consequences of Health Coverage for Domestic Partners

The employee's share of premiums for health and/or dental coverage provided to a domestic partner will be deducted from the employee's paycheck on either a bi-weekly or monthly basis, depending on the employee's pay cycle. Under current federal and state law, including the Internal Revenue Code and the Defense of Marriage Act, unless the domestic partner meets certain requirements and may be treated as the employee's tax dependent (see "Code Section 152 Dependents" below), deductions for benefits for the domestic partner must be made on an after-tax basis.

If the domestic partner receiving health and/or dental benefits is not the employee's tax dependent, current tax law requires that the employee include in gross income the fair market value of the domestic partner's health coverage, less the amount of premiums paid by the employee. In other words, the employee will be taxed on the value of the health and/or dental coverage provided by the University for the domestic partner, less any premiums paid by the employee for such coverage.

Finally, unless the domestic partner qualifies as the employee's tax dependent, the fair market value of the domestic partner's coverage will be considered wages for Federal Insurance Contributions Act ("FICA") purposes. Accordingly, the employee will have to pay FICA tax on the value of the coverage, less any premiums paid by the employee.

Any federal or state tax consequences of providing health coverage to domestic partners under this Policy is the sole responsibility of the employee and domestic partner.

Continuation Rights

In accordance with the Defense of Marriage Act, unless the domestic partner is also the employee's tax dependent (see Code Section 152 Dependents below), federal health coverage continuation rights under COBRA are not available and will not apply to the domestic partner. In addition, Virginia's laws regarding health coverage continuation rights do not apply to domestic partners. This means that if the domestic partner's health coverage with the University is canceled as a result of the termination of the employee's employment or the ending of the domestic partner relationship, the domestic partner will not be eligible to continue the health coverage.

Code Section 152 Dependents

To qualify as a Code Section 152 "tax dependent," the domestic partner must receive more than half of his or her support for the year from the employee, and must have been a member of the employee's household during the employee's entire taxable year. In addition, the Code requires that the relationship between the employee and the dependent may not violate local laws. If an employee annually certifies with a notarized affidavit that his or her domestic partner qualifies as a tax dependent under Code Section 152, the value of the coverage provided will not be included in the employee's taxable income and will not be subject to FICA taxes. In addition, the employee's share of premiums for health and/or dental coverage may be deducted from the employee's pay on a pre-tax basis. The certification described above must be provided annually to the University.

2. Flexible Spending Accounts

Under current federal tax law, domestic partners (other than those who qualify as tax dependents of employees) may not participate in the University's pre-tax dependent care and health care flexible spending account programs. In other words, medical and dependent care expenses incurred by or on behalf of a domestic partner who is not a tax dependent are not eligible for reimbursement under the spending account programs. On the other hand, medical and dependent care expenses incurred by or on behalf of an employee's domestic partner who qualifies as a tax dependent may be reimbursable under terms of the spending account programs if the domestic partner and the employee certify that the domestic partner is a Code Section 152 dependent.

3. Tuition Benefits

The domestic partner of a full-time employee will be able to participate in the University's tuition benefit program in the same manner as the spouses of other full-time employees.

Children of a domestic partner are potentially eligible for the educational grant program under the standard criteria established for this program if there is a legally recognized and enforceable joint adoption relationship or legal guardianship between the employee, the domestic partner and the child.

IRS regulations require that the "fair market value" of tuition benefits extended to domestic partners and children who are not the employee's children by birth or adoption be treated as taxable income to the employee.

4. Leave Benefits

The University of Richmond will extend its bereavement leave, family and medical leave and sick leave policies to include domestic partners and their children if there is a legally recognized and enforceable joint adoption relationship or legal guardianship between the employee, the domestic partner and the child. For further information regarding the potential application of any of the leave benefits, please contact the Human Resources Office.

5. Library and Recreational Facility Privileges

Library and recreational facility privileges will be extended to domestic partners as well as their children if there is a legally recognized and enforceable joint adoption relationship or legal guardianship between the employee, the domestic partner and the child.

6. Employee Assistance Program

The Employee Assistance Program (EAP) will be available to domestic partners.

Confidentiality

Note: The above Policy provides a general description of the benefit programs that are currently offered to eligible, same-sex domestic partners of University of Richmond employees. Where benefits are governed by a formal plan document or a matter of policy, the exact terms of the plan or policy will govern. While it is presently the University of Richmond's intent to continue all current benefit plans and policies, the University reserves the right to change, supplement, amend or terminate at any time any benefit plan or policy presently in effect.

Exhibit A - Affidavit of Same-Sex Domestic Partnership

Exhibit B - Statement of Termination of Same-Sex Domestic Partnership