Q: Who qualifies as a domestic partner of a PEBB state employee?
A: The PEBB Affidavit of Domestic Partnership requires that both parties declare they:
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Are at least 18 years of age.
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Share a close personal relationship and are responsible for each other’scommon welfare.
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Are each other’s sole domestic partner.
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Are not married to anyone and have not had another domestic partner within the prior six months.
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Are not related by blood closer than would bar marriage in the state of Oregon.
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Have jointly shared the same regular and permanent residence for at least six months immediately preceding the date of the Affidavit with the intent to continue doing so indefinitely.
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Are jointly financially responsible for basic living expenses defined as the cost of food, shelter, and any other expenses of maintaining a household. Domestic partners need not contribute equally or jointly to the cost of these expenses as long as they agree that both are responsible for the cost. If requested, both would be able to provide at least three of the following as verification of their joint responsibility (information should be dated to confirm eligibility at time of enrollment).
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Joint mortgage or lease.
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Designation of the domestic partner as primary beneficiary in the employee/ covered member’s will.
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Durable power of attorney for health care or financial management.
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Joint ownership of a motor vehicle, a joint checking account, or a joint credit account.
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A relationship or cohabitation contract which obligates each of the parties to provide support for the other party
Q: How do I enroll my domestic partner for medical, dental or life insurance coverage?
A: Complete and return the Affidavit of Domestic Partnership and enrollment form(s) to your payroll, personnel or benefits office. Current employees may enroll a domestic partner at the point their partner first meets the qualifications. New employees may enroll their domestic partner at the time of hire if they meet the qualifications. Employees choosing not to enroll their domestic partner when first eligible may enroll them during the annual open enrollment period. Dental plan waiting periods apply to those who were not enrolled when they were initially eligible.
Q: What happens if I do not return the completed PEBB Affidavit of Domestic Partnership or the Enrollment Forms?
A:The domestic partner will not be eligible for coverage.
Q: Where can I find more detailed information about eligibility and enrollment procedures for a domestic partner?
A: The Eligibility Rule Handbook governs eligibility and enrollment procedures for all PEBB employees, spouses and dependents. Where legally possible, eligibility and enrollment procedures for a domestic partner will be the same as for spouses or dependents.
Q: Are there any additional rules for seasonal and part-time employees to qualify for payment of their domestic partner’s medical expenses?
A: No. For purposes of domestic partnership, seasonal and part-time employees are treated the same as full-time employees.
Q: Are domestic partners of PEBB-covered retirees eligible?
A: Yes, as long as coverage is continued under a PEBB-sponsored retiree plan. Retired employees covered under a PERS-sponsored medical plan are not eligible to cover domestic partners.
Q: Are dependents of a domestic partner eligible for coverage?
A: Children of a domestic partner are eligible if they meet the PEBB definition of an eligible dependent. These requirements are included in the Eligibility Handbook. The requirements are the same for dependents of any other PEBB-covered member.
Q: Where can I find more detailed information about the insurance company’s benefits and rules?
A: A summary of the main features of benefits and rules are included in the new hire and open enrollment insurance packets. The most important information to an employee considering domestic partner benefits will be in the following documents.
- Benefit Handbook
- Eligibility Handbook
State employees enrolled in a PEBB medical plan should receive a Member Handbook and ID card from their insurance company within four weeks of enrolling. This handbook describes the benefits and rules of the insurance plan they selected. The Member Handbook is the governing document describing the insurance company’s benefits and rules.
The Member Handbooks may not specifically refer to domestic partners. Where legally possible, the benefits and rules for a domestic partner will be the same as for spouses or dependents of any other PEBB-covered member.
Q: I submitted the affidavit and enrollment forms. What should I do now?
A: Your affidavit will be on file at your agency. Your enrollment forms will be sent to the insurance carriers you selected. New ID cards should be issued listing all covered members. If you do not receive a new ID card, please contact your insurance company.
Coverage for domestic partners enrolled during open enrollment will be effective January 1 of the following year. For midyear changes, the domestic partner (and eligible dependent children) will receive medical, dental and/or life insurance coverage beginning the first day of the month following receipt of the appropriate forms by the agency (or third-party administrator) or the date you meet the requirements, whichever is later.
Q: Do the records of employees with domestic partners receive equal confidentiality protections as any other employee?
A: Yes. Enrollment information for all state employees is confidential. Employees with domestic partners have the same protections.
Q: What are the federal tax implications for enrolling my domestic partner?
A: Under applicable federal income tax law, payments for medical and dental coverage of a domestic partner not eligible for pre-tax treatment. Coverage of the domestic partner and their dependents may result in additional imputed taxable income to the employee, and related withholding for payroll taxes (including income and social security taxes) by the employer. We strongly advise you to discuss tax questions with your tax advisor.
The imputed value is calculated by comparing the employee’s premium prior to adding a domestic partner with the premium after adding the domestic partner. The difference between the two is the imputed value that is added to the employee’s subject taxable wages. The tax on this amount is deducted from payroll monthly.
The premiums included in enrollment materials are not the premiums used to calculate the imputed value tax. The published premiums have been adjusted to meet the state’s mission of providing high quality of health benefits at a cost affordable to both the employer and the employees. The IRS requires that the imputed value be based on true market value costs, not adjusted premiums. True market value rates exclude the adjustments made by employers to meet their specific goals. PEBB and your agency have a copy of the actual premiums used to calculate the imputed value.
Q: What are the Oregon tax implications for enrolling my domestic partner?
A: Because of the IRS requirements and state programming and administrative limitations, all employees enrolling a domestic partner will pay a monthly imputed value tax. Effective 12/31/99, the Department of Revenue changed the Oregon tax laws based on the state’s attorneys’ interpretation of the Oregon Court of Appeals decision in Tanner v. OHSU. The change means that the value of the benefit is not taxable by Oregon if the person qualifies as a same-gender domestic partner. Department of Revenue Administrative Rule OAR 150-316.007-(B) and its Policy Q&A outline alternatives available to employees with respect to their taxable income.
Q: What happens to my state contribution if I enroll a domestic partner?
A: Based on the State´s tiered contribution structure (e.g., amount depends on the dependents enrolled in your medical plan), your contribution will increase to the employee and spouse amount or the employee and family amount.
PEBB has no role in setting the amount of your state contribution. Depending on your employee status, the amount is established through the collective bargaining process, by the Department of Administrative Services, or by your agency.
Q: How do I determine the amount of my monthly payroll deduction for the imputed value tax?
A: You will be able to see the deduction on the first pay check stub you receive after the addition of a domestic partner. You will have two weeks following receipt of that pay check stub to un-enroll the domestic partner. Notify your agency (or third-party administrator) in writing within this two-week period if you wish to discontinue domestic partner enrollment. Termination of coverage will be retroactive to the date the enrollment became effective.
Q: What happens to my monthly insurance premiums if I enroll a domestic partner?
A: Premiums will change as a result of adding a domestic partner. Premiums are based on the dependents enrolled on your medical plan.
Q: Can I delete my domestic partner midyear if he or she experiences a qualified status change?
A: Yes.
Q: What happens if my domestic partner becomes my legal spouse?
A: You will need to submit a completed Medical and Dental Update Form to your agency payroll, benefits or personnel office to discontinue the deductions for the imputed value tax.
Q: Do the same procedures apply to self-pay groups currently offered medical benefits?
A: The following self-pay groups are eligible for domestic partner coverage:
- Foster Parents
- OLCC Agents
- Post Doctorate Fellows
- Blind Business Enterprise Employees
- COBRA Participants
- PEBB Non-Medicare Eligible Retirees
The tax implications for self-pay groups are different because premiums are paid on an after-tax basis. We strongly advise you to discuss tax questions with your tax advisor.
Q: Where should I send the completed affidavit and forms?
A: Send the completed affidavit and enrollment or update forms to your payroll, personnel or benefits office. Self-pay participants should send the affidavit and forms to BestChoice Administrators.
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