Eligibility & Eligible Dependents of a Domestic Partner
Tax Consequences
Enrollment
Termination of Domestic Partnership
Questions?

Eligibility

To qualify for benefits under a domestic partnership, the employee and domestic partner must be eligible under the terms of the applicable insurance coverage and the employee and domestic partner, or the retiree and domestic partner must have executed a domestic partnership agreement and/or registered as domestic partners in a jurisdiction which authorizes such agreements and/or registries, OR must meet all of the following criteria:

1. They must be each other's sole domestic partner and intend to remain so indefinitely.
2. Neither of them may be married or legally separated from anyone else, or in another domestic partnership with someone else that has not been terminated, dissolved or adjudged a nullity.
3. They must be at least eighteen (18) years of age and mentally competent to consent to the declaration of domestic partnership.
4. They may not be related by blood to a degree of closeness that would prohibit legal marriage in the state in which they legally reside.
5. They must currently reside together in the same residence and intend to do so indefinitely.
6. They must be jointly responsible for basic living expenses incurred during the domestic partnership.
7. They must affirm that at least THREE (3) of the following are true:
   • They have lived together continuously for the previous twelve (12) months;
   • The employee/retiree has named his/her domestic partner as a beneficiary under their will, or the domestic partner has named the employee/retiree as a beneficiary under their will;
   • The employee or retiree has granted his or her domestic partner powers under a durable power of attorney, or the domestic partner has granted the employee or retiree powers under a durable power of attorney;
   • The employee/retiree has previously named their domestic partner as a beneficiary on their life insurance policy, or the domestic partner has named the employee/retiree as a beneficiary on their life insurance policy;
   • They have a joint bank account;
   • They are cosigners of a lease or deed;
   • They are named on the same car insurance policy.

The employee is responsible for maintaining accurate enrollment status with SDSU Research Foundation's Human Resources Office. Failure to notify SDSU Research Foundation timely, shall make the employee liable for any and all additional expenses incurred, if applicable, including premiums paid by SDSU Research Foundation.

Tax Consequences

The Internal Revenue Service (IRS) has determined that the actual cost of the domestic partner benefit is taxable income to the employee and retiree, unless the domestic partner qualifies under the dependency criteria of Internal Revenue Code § 152(a) as modified for purposes of Internal Revenue Code §§ 105 and 106. California State taxes are not due on the value of the benefit if the dependent qualifies under the federal rules or if the domestic partnership is registered with the California Secretary of State. If the employee or retiree resides outside California, they are encouraged to contact SDSU Research Foundation’s Human Resources Office for information on tax consequences of domestic partnerships in their State.

The value of SDSU Research Foundation’s paid coverage that relates to a domestic partner and/or a domestic partner’s child(ren) who is not a dependent under tax law will generally be considered imputed income. Imputed income is calculated as the value of the coverage provided to the domestic partner and/or the domestic partner’s child(ren). Please note:

• Taxes paid on imputed income is in addition to the employee’s or retiree’s monthly plan cost.
• The amount of imputed income depends on the plan in which the employee or retiree is enrolled and the level of coverage selected.
• Imputed income is taxable and will be added to the employee's gross income each pay period for the purposes of calculating federal and state income taxes and for Social Security and Medicare taxes.
• Imputed income will be reported on the employee's annual Form W–2.
• For retirees, all taxes should be paid when income taxes are filed and due. At the end of the tax year, imputed income will be reported on a Form W–2 issued to the retiree.
• For employees, imputed income is not included in the calculations for life insurance, disability insurance, or retirement plan benefits.
• The employee's or retiree's personal income tax bracket will determine the actual tax consequences.

Since there may be tax consequences to employees or retirees who enroll a domestic partner, employees or retirees may wish to consult a tax advisor before electing this coverage.

Enrollment

Employees may add or discontinue coverage for a domestic partner and/or domestic partner’s child(ren), if applicable, during the annual Open Enrollment period. Employees or retirees enrolled in an SDSU Research Foundation health plan may add domestic partners and the domestic partner’s child(ren), if applicable, to their health and dental plans, when first eligible. To enroll, the employee or retiree must submit, within 31 days of eligibility, the following forms to SDSU Research Foundation’s Human Resources Office:

1. SDSURF Declaration of Domestic Partnership Form   (PDF Format, 38KB)*
2. SDSURF Domestic Partner Tax Dependency Certification Form   (Word Format, 398KB)*
3. Only for same sex partnerships, or for opposite sex partnerships, if one the individuals is at least age 62, State of California Declaration of Domestic Partnership Form (if applicable)

The employee is responsible for maintaining accurate enrollment status with SDSU Research Foundation's Human Resources Office. Failure to notify SDSU Research Foundation timely, shall make the employee liable for any and all additional expenses incurred, if applicable, including premiums paid by SDSU Research Foundation.

Termination of Domestic Partnership

If the domestic partnership ends, or the domestic partner is no longer eligible, the employee or retiree must cancel all benefits coverage for the domestic partner within 31 days of the termination of the partnership. Coverage for children of the domestic partner, enrolled as a dependent child(ren) of the domestic partner must also be terminated once the domestic partnership dissolves. If you filed a Declaration of Domestic Partnership with the State, cancellation of domestic partnership coverage can be accomplished by submitting the Notice of Termination of Domestic Partnership Form   (PDF Format, 60KB)* to the Secretary of State, and a copy of it and all necessary change forms to SDSU Research Foundation’s Human Resources office within 31 days of the dissolution of the partnership.

If you did not file for a Declaration of Domestic Partnership with the Secretary of State and you wish to terminate the domestic partnership, complete and return the Notice of Termination of Domestic Partnership Form   (PDF Format, 60KB)* to SDSU Research Foundation’s HR Office. The Notice of Termination of Domestic Partnership will affirm that the domestic partnership status is terminated, and that health, dental, and vision coverage will be terminated as of the end of the month in which the partnership ended. Failure to provide notification of the dissolution of the domestic partnership within 31 days may result in financial liability to the employee for claims, premium costs, and/or taxation on imputed income.

Questions?

For further questions or assistance regarding domestic partner coverage, contact SDSU Research Foundation's Human Resources Office at 619-594-4139 or through email at sdsurfbenefits@foundation.sdsu.edu.

SDSU Research Foundation reserves the right to amend or discontinue any employee benefit plan, or any part of them, with or without notice, at any time at SDSU Research Foundation’s sole discretion. If there is a discrepancy between this document and the Plan Documents, the provisions of the Plan Documents will govern.

* Note: Documents in Portable Document format (PDF) require Adobe Acrobat Reader 9.0 or higher to view. Download Adobe Acrobat Reader
* Note: Documents in Word format (DOC) require Microsoft Viewer. Download Microsoft Word Viewer

Announcement November 2002
Benefit Effective Date = January 1, 2003
Most Recent Update February 2010
Updated October 2010
Updated December 2011
Updated November 2012
Updated September 2013
Updated October 2013
Updated November 2014