Civil Unions Legislation in New Hampshire
This notice is intended to provide information about changes which will occur in benefit options for same-sex partners due to the NH law enabling civil unions.
The main points of information include:
- For those in legally recognized marriages, health (medical and/or dental) benefits for spouses are a form of compensation that is tax free. For those in civil unions, health (medical and/or dental) benefits for spouses and/or civil union spouse’s eligible dependent(s) are a form of compensation that is taxable. Effective January 1, 2009, USNH will provide compensation to individuals in civil unions with the goal of mitigating the tax difference (imputed income) (See "Q&A's").
- The approved transition plan allows employees who qualify for domestic partner benefits to continue to be eligible to cover a same-sex partner’s eligible dependent(s) and/or civil union spouse's eligible dependent(s) through June 30, 2009.
- Beginning July 1, 2009, USNH employees will have two principle ways to obtain spousal benefits. These two options are legal marriage or legal civil union. In addition, there will be an opportunity to apply for an exception to these two options. This exception will have specific criteria and will generally include "hardship" or legal reasons why a civil union is not a reasonable option.
- If at some point in the future, health (medical and/or dental) benefits are not taxable for those in civil unions, same-sex marriages, or the equivalent, this tax “gross up” provision will cease to apply. If at some point in the future health (medical and/or dental) benefits are taxable for all employees, this provision will also cease to exist.
The following Questions and Answers ("Q&A's") are intended to help describe some of the relevant details:
- I have already entered into a civil union in New Hampshire and am currently enrolled in USNH’s medical plan via the domestic partner benefit. How does this affect my benefit?
- If I am currently in a NH civil union and not enrolled in USNH Benefits, should I enroll during the annual open enrollment?
- Open Enrollment is nearly over. What should I do if I need/want to make a change in my benefits selection?
- Can I enter into a civil union after July 1, 2009 and obtain coverage?
- If I have partner benefits now and choose not to enter a civil union or apply for an exception, what happens to my health (medical and/or dental) benefits?
- What about other benefits if I am not married or in a civil union?
- I am an employee covering a same-sex domestic partner or civil union spouse and also cover my legal dependent(s) on health (medical and/or dental) benefits. Does any of this impact my eligible dependent(s) coverage?
- If I am in a civil union, will I be able to cover my civil union spouse’s children in health (medical and dental) plans?
- Can you explain taxation of same-sex domestic partner health (medical and/or dental) benefits?
- Why do some employees pay a combination of pre and post tax premiums to cover their same-sex domestic partner and/or their eligible dependents; and will this practice continue going forward with civil union spouses and/or their eligible dependents?
- Is my same-sex domestic partner, civil union spouse and/or their eligible dependents eligible to use my Flexible Spending Account (FSA) and/or Health Reimbursement Account (HRA)?
- I have already entered into a civil union in New Hampshire and am currently enrolled in USNH’s medical plan via the domestic partner benefit. How does this affect my benefit?
You may continue to elect your domestic partner coverage through June 30, 2009. However, if you notify USNH of your civil union status, USNH will cover your health (medical and/or dental) benefits imputed income tax starting on January 1, 2009. To do this, please go into www.myusnhbenefits.net and update your profile to reflect that you are in a civil union prior to November 21, 2008.
Back to top - If I am currently in a NH civil union and not enrolled in USNH Benefits, should I enroll during the annual open enrollment?
Yes, if you wish to have USNH benefits for your spouse and/or family, you must add them during this annual open enrollment period or you will be unable to add them later without a qualifying event during the 2009 plan year.
Back to top - Open Enrollment is nearly over. What should I do if I need/want to make a change in my benefits selection?
3A The Open Enrollment dates are October 27 – November 7. USNH has a 'correction period' which extends from November 8 – November 21 (until 5:00 pm) where employees are able to continue to log onto MyUSNHBenefits.net and make open enrollment elections which will be effective January 1, 2009.
Back to top - Can I enter into a civil union after July 1, 2009 and obtain coverage?
4A When you enter into a civil union (prior to/or after July 1, 2009) you will have 30 days from the date of the civil union to add your civil union spouse and/or civil union spouse’s eligible dependent(s) to your health (medical and/or dental) coverage. If you miss the 30 day qualifying window, you will have wait until the next annual open enrollment period.
Back to top - If I have partner benefits now and choose not to enter a civil union or apply for an exception, what happens to my health (medical and/or dental) benefits?
You will have an option to continue health (medical and dental) benefits through June 30, 2009 at the regular rate of employee contribution for your same-sex partner and eligible dependent(s). On July 1, 2009 your same-sex partner and eligible dependent(s) will be offered COBRA to continue coverage.
Back to top - What about other benefits if I am not married or in a civil union?
Tuition benefits will end for your same sex domestic partner on June 30, 2009. Tuition benefits will continue for any course which begins prior to July 1, 2009. For life insurance, long term disability insurance and retirement benefits, you may continue to list your partner as a beneficiary.
Please note: tuition benefits for your civil union spouse and/or civil union spouse’s eligible dependents is subject to imputed income taxation.
Back to top - I am an employee covering a same-sex domestic partner or civil union spouse and also cover my legal dependent(s) on health (medical and/or dental) benefits. Does any of this impact my eligible dependent(s) coverage?
No, you are not subject to imputed income when covering your legal dependent on health (medical and/or dental) coverage. You only have imputed income when covering your same-sex domestic partner or civil union spouse and/or their eligible dependent(s).
Back to top - If I am in a civil union, will I be able to cover my partner’s children in health (medical and dental) plans?
The eligibility will be exactly the same as those in marriages.
Back to top - Can you explain taxation of same-sex domestic civil union spouse’s health (medical and/or dental) benefits?
When USNH provides health insurance (medical and/or dental) coverage for the same-sex domestic partner, civil union spouse and/or dependents, federal tax law considers the fair market value of that coverage as "imputed income" to the employee. Starting January 1, 2009, USNH will provide funding to those in a civil union to mitigate the employee’s imputed income taxation for health (medical and/or dental) benefits.
Back to top - Why do some employees pay a combination of pre and post tax premiums to cover their same-sex domestic partner and/or their eligible dependents; and will this practice continue going forward with civil union spouses and/or their eligible dependents?
Yes, federal tax laws prohibit the use of pre-tax dollars to pay for coverage for a same sex domestic partner and/or their eligible dependents. This also applies to civil union spouses and/or their eligible dependents.
Back to top - Is my same-sex domestic partner, civil union spouse and/or their eligible dependents eligible to use my Flexible Spending Account (FSA) and/or Health Reimbursement Account (HRA)?
No, Federal Tax Laws exclude them as eligible dependents.
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For answers to questions you may have that are not listed here, please contact your campus Human Resources Office or Susan Strogen (susan.strogen@usnh.edu) at the USNH Human Resources Office for more information.