Domestic Partners

Effective July 1, 2009, commonwealth employees enrolled in Pennsylvania Employees Benefit Trust Fund benefits and retirees enrolled in the Retired Employees Health Program may extend coverage to certified domestic partners. Benefits include:

Active Members:
·        Medical (HMO and PPO only)
·        Prescription Drug
·        Dental
·        Vision
·        Hearing Aid

Retiree Members:
·        Medical (Basic, retirement date prior to 7/1/04, HMO and PPO Only)
·        Prescription Drug

Please check back for eligibility details as well as more information on how to certify and enroll domestic partners.  This information will be available on May 1, 2009.

Domestic Partner Fact Sheet

Frequently Asked Questions

On Thursday, September 18, 2008, trustees of the Pennsylvania Employees Benefit Trust Fund voted to grant commonwealth employees the option to extend their health benefits to domestic partners effective July 1, 2009. 

Who makes decisions about benefits for commonwealth employees?

As a result of various collective bargaining agreements, the Pennsylvania Employees Benefit Trust Fund (PEBTF), through its board of trustees, has the sole discretion to determine which benefits are offered, the eligibility criteria and the level of such benefits for active employees.

The PEBTF is a private, not-for-profit organization; it is not a government agency.  The 18-member board of trustees is divided evenly between organized labor and commonwealth representatives. PEBTF administers health care benefits for approximately 81,000 eligible active commonwealth employees.

What does this vote mean?

This vote allows the PEBTF and the commonwealth to continue to offer competitive benefits to attract and retain quality employees, maintains the fiscal stability of the trust fund and recognizes changing workforce demographics. 

This vote is the culmination of a longer-term process.  In July 2005, the PEBTF board of trustees unanimously agreed to evaluate the actuarial impact as well as to undertake an assessment of other government, academic, private-sector and nonprofit employers that offer domestic partner benefits.

Which benefits will be extended?

PEBTF-eligible active employees will have the option to extend their medical, prescription, dental, vision and hearing aid benefits to domestic partners and their dependents.  Employees who cover domestic partners will be charged the same rates and have the same plan choices as those in place for spousal and dependent coverage.  However, the IRS does tax the value of the benefits provided to domestic partners.

There are other benefits, unrelated to this vote, that are already extended to domestic partners.  A number of labor agreements, for example, allow sick leave to be used to care for a domestic partner.  In addition, optional life insurance programs and an optional long term care plan allow commonwealth employees to extend those benefits to domestic partners.

Who is a domestic partner?

A PEBTF-eligible employee can certify that another person is their domestic partner if they provide evidence of at least three of the following:

1. Domestic partnership agreement as recognized by a governmental entity
2. Deed or lease evidencing common ownership of real property or a common leasehold interest in property
3. Evidence of joint title to a motor vehicle
4. Drivers’ licenses that list a common address
5. Proof of joint bank accounts or credit accounts
6. Proof of designation as a beneficiary for life insurance, retirement benefits or beneficiary designation under a partner’s will
7. Assignment of durable power of attorney or health care power of attorney

Are retirees impacted by this program?

Most collective bargaining agreements extend the same benefits enjoyed by active employees to those who retire and are covered for health benefits.

Is it common business practice to allow employees to extend benefits to domestic partners?

A majority of Fortune 500 companies, 30% of the states, scores of Pennsylvania’s private-sector employers—including Aramark, CIGNA, Comcast, Lincoln National, PNC Financial Group, Unisys and Rite Aid—and the cities of Philadelphia and Pittsburgh already allow their employees to do so. And, with this program, Pennsylvania joins 15 states – Alaska, Arizona, California, Connecticut, Illinois, Iowa, Maine, Montana, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Washington – in allowing employees to extend health benefits to domestic partners.

What do I need to do to add a domestic partner?

You should contact your agency’s office of human resources to certify that another person is your domestic partner. You must affirm, for example, that both partners are at least 18 years old, mentally competent to enter into a contract in Pennsylvania and that you have lived together on a continuous basis for at least six months. You must complete these forms, which are available at www.pebtf.org:

• PEBTF-2 Employee Enrollment/Change Form
• PEBTF-2A Coordination of Benefits Form (if applicable)
• PEBTF-11 Declaration of Spouse/Domestic Partner Health Coverage Form
• PEBTF-12 Domestic Partnership Verification Statement & Application for Health Benefits Form

You must also provide at least three of the following, dated at least six months prior to the effective date you choose to enroll your domestic partner:

1. Domestic partnership agreement as recognized by a governmental entity*
2. Deed or lease evidencing common ownership of real property or a common leasehold interest in property
3. Evidence of joint title to a motor vehicle
4. Drivers’ licenses that list a common address
5. Proof of joint bank accounts or credit accounts
6. Proof of designation as a beneficiary for life insurance, retirement benefits or beneficiary designation under a partner’s will
7. Assignment of durable power of attorney or health care power of attorney

Completed forms and required documentation should be provided to your agency’s office of human resources. Do not send the information directly to the PEBTF.

*Certain local governments allow residents to register and provide domestic partner agreements.  These are not available from PEBTF or the Commonwealth of Pennsylvania.  Contact your city/county government for availability.

Is there a cost to add a domestic partner?

Although employees who cover domestic partners will be charged the same contribution rates for family coverage as all other employees, the IRS requires that some of these contributions be taken on a post-tax basis.  Examples of tax implications for employees are available at www.pebtf.org. Information provided, however, does not constitute tax advice. Employees are encouraged to seek professional tax assistance.

Employees must pay federal and FICA taxes on the value of the benefits provided to domestic partners (known as “imputed income”). For calendar year 2009, the bi-weekly imputed income is $156.09 for medical benefits and $68.91 for supplemental benefits. There are no additional taxes for employees who already have family coverage; for example, an employee who already covers their own child who adds a domestic partner.

The commonwealth’s payroll system will report the value of the domestic partner benefits as taxable income. The imputed income will be added to your gross income and will increase federal and FICA tax withholding. Pre-tax means deductions are taken from your gross pay before taxes are calculated, lowering your taxable wages. Post-tax means that taxes are calculated on your gross pay before deductions are taken.  Post-tax deductions do not lower your taxable wages.

Impact of Domestic Partner Benefits on Payroll Taxes
	Employee Contribution	Single Least Expensive Plan Buy-up*	Family Least Expensive Plan Buy-up*	Part-Time 50%	Dependent Buy-up for First 6 Months of Employment*	Imputed Income
Employee Adds Domestic Partner	Pre-tax	Pre-tax	**Post-tax	Pre-tax	Post-tax	Yes
Employee & Child, Adds Domestic Partner	Pre-tax	N/A	Pre-tax	Pre-tax	Pre-tax	No
Employee Adds Domestic Partner & Child of Domestic Partner	Pre-tax	Pre-tax	**Post-tax	Pre-tax	Post-tax	Yes

*For employees hired after August 1, 2003.
** The difference between single and family coverage will be taken on a Post-Tax Basis.