Links:

Applicable Benefits

Eligibility Requirements 

Registration Process 

Benefit Plan Enrollment

Tax Information

Legal Concerns

Termination of a Domestic Partnership

COBRA Continuation of Health Plan Coverage 

Updates to policies

Related Forms:

Affidavit of Domestic Partnership 

Certification of Tax-Qualified Dependents 

Tax Estimation Work Sheet

Important Tax Information For Same-Sex Domestic Partner Benefits

Termination of Domestic Partnership

See Also:

Domestic Partner Benefits Program Eligibility Information

Correspondence:

Memo - March 12, 2002

Domestic Partner Coverages

Effective April 1, 2002

On September 14, 2001, the Trustees of Indiana University passed a resolution approving the provision of benefits to same-sex domestic partners of Indiana University employees and students who demonstrate that they are in a "verifiable committed relationship." The university will implement the benefits listed below for qualified, registered domestic partners and qualified children of domestic partners, effective April 1, 2002.

Applicable Benefits 

The following benefits and policies may apply to registered domestic partners of IU employees: 

Benefit plans for Academic and Staff employees 

• Medical and dental coverages
• IU Fee Courtesy (tuition subsidy)
• Basic Life Insurance (dependent coverage)
• Personal Accident Insurance (family coverage)

Personnel policies for staff employees  

• Funeral time-off provisions
• Sick time-off provisions
• Family and Medical Leave Act (FMLA) provisions

Other IU-sponsored programs may be available to domestic partners (e.g., memberships for recreation facilities), however, these programs are not addressed on this web page.  Contact individual programs for information. 

Eligibility Requirements for Domestic Partners  

The definition of a domestic partner is an individual who is registered by the employee with a notarized affidavit attesting that the domestic partner: 

• is the same sex as the employee; and 
• is at least 18 years of age and competent to enter into a contract; and
• is not legally married or the domestic partner of another individual; and 
• is not related to the employee by blood closer than would bar marriage in the State of Indiana; and 
• has allowed at least six months to pass since the termination of any previous same-sex domestic partnership; and
• has lived together as a couple with the employee in a shared residence for at least six (6) consecutive months; and
• has submitted documentation, as may be required by the university*, to verify the interdependent relationship with the employee, including a joint affidavit with the employee that the relationship is an exclusive mutual commitment that is the functional equivalent of a marriage; that is, the domestic partner and the employee:
  • are jointly responsible for each other for the necessitites of life, including each other's debts; and
  • intend to remain in the relationship indefinitely; and
  • would enter into a legal marriage if the opportunity were available; and
  • have agreed that in the event of dissolution of the domestic partnership, there will be a substantially equal division of any earnings acquired during the partnership and of property acquired with these earnings; i.e., there will be a division of property similar to that required of a married couple in the event of a divorce.

  * Required documentation: in lieu of the marriage certificate that the university requires to cover an employee's spouse, the following supporting documentation is required to verify the employee and domestic partner's interdependent financial relationship:

  1. Joint ownership of residence (home, condo, mobile home) or a lease for a residence identifying both partners as tenants; and
  2. Two of the following: joint ownership of a motor vehicle; joint credit account; joint checking account; or other evidence of joint ownership of a major asset or joint liability of debt.

Unmarried children of a same-sex domestic partner who are in the custody and care of and legally dependent on the same-sex domestic partner and are members of the household of the employee are also eligible for coverage under IU-sponsored benefits plans.  Applicable documentation (e.g., birth certificate) is required. 

Health Plan Eligibility Criteria for Children
 
The unmarried biological or legally adopted child or qualified legal ward of a same-sex domestic partner is eligible if that child: 

• is in the custody and care of and legally dependent on the same-sex domestic partner; and 
• is a member of the household of the employee or, maintains the employee's home as a primary residence while living away from home in order to be a full-time student; and 
• is a child for whom the employee assumes full parental responsibility and control, including any and all debts incurred by the child (i.e., charges for health care services and supplies). 

Health plan eligibility for all dependent children ends at the end of the month in which the child reaches age 19 unless the child qualifies for Student Eligibility or Disabled Child eligibility.  Student Eligibility terminates at the end of the month in which the child reaches age 24. 

Domestic Partner Registration
 
In order for an employee to engage domestic partner benefits, he or she will need to register the domestic partnership with the university.  In order to register: 

1. Request an Affidavit of Domestic Partnership form from a Human Resources office or download from this website.
2. Read and Review the Certification of Tax Qualified Dependents form and request the form from a Human Resources office or download from this website, if applicable.
3. Consult and attorney and tax advisor concerning any legal obligations that may be created by the affidavit.
4. Complete the affidavit and have it notarized.
5. Submit the notarized affidavit to University Human Resource Services (Attention: COBRA Specialist, Poplars E165, Bloomington, IN 47405) for review.

Registration of a domestic partner may take place at any time during the year; however, enrollment in benefit plans is subject to the same time limits as that of a spouse and/or children of the employee. 

Confidentiality.  Domestic Partner registration is confidential; however, information may be shared within the university and with plan administrators on a need-to-know basis in order to administer benefits, make appropriate payroll deductions, and assess taxes on benefits when required.  Information may be made available also as required by law or the courts.  

Benefit Plan Enrollment   

Medical and Dental Plans and Personal Accident Insurance 

Enrolling a domestic partner in IU-sponsored medical and dental plans or Personal Accident Insurance is subject to the same limitations that apply to a spouse or child.  Enrollment is limited to:

• within 60 days of being hired into a full-time appointed position, or
• during IU's annual Open Enrollment period each November (effective January 1st), or
• within 60 days of all IRS-deferred change of status (e.g., birth/adoption of a child or loss of a partner's coverage through his or her employer).

Fee Courtesy  

Application may be made for a registered domestic partners and/or qualified children of the domestic partner beginning with Summer Session I, 2002. 

Basic Life Insurance 

Enrollment is Basic Life Insurance benefits will be automatic upon registration of the domestic partner and/or qualified children of the domestic partner.  No enrollment form is required. 

Tax Information 

An employee's taxable income associated with enrolling a domestic partner and/or the partner's child in an employer sponsored health care plan can be meaningful.  This document is not specific legal or tax advice and, therefore, employees considering domestic partner benefits are advised to consult their tax advisor. 

In general, both the university's and employee's cost of providing domestic partner benefits is considered taxable income by the IRS.  When an employee enrolls a domestic partner or the partner's child in an IU-sponsored health care plan, the employee's contribution and the university's contribution for that coverage are the same as for a spouse and spouse's child.  However, due to IRS regulations, these contributions are taxable income and will be added to the employee's pay as additional wages.  This will be reported on the employee's annual Form W-2 and increases the employee's taxable gross income for federal and state income taxes as well as for FICA (Social Security and Medicare) taxes withheld from paychecks.  The amount of the additional taxable income depends upon the plan in which the employee is enrolled and the resulting level of coverage (employee/spouse, employee/child, family). 

Associated taxable income can be excluded if the employee is eligible to claim the domestic partner and/or the partner's child as a tax dependent under IRS Section 152.  If the domestic partner and/or partner's children are IRS-defined tax dependents of the employee, the employee should submit a Certification of Tax-Qualified Dependents form to University Human Resource Services. 

For a non-family member, such as a domestic partner, to qualify as a dependent several IRS tests must be satisfied:  The domestic partner must: 

• receive over half of his or her support from the employee for the year (support includes food, shelter, clothing medical and dental care, and education and must be compared to total support including the partner's income); and 
• have as his or her principal abode the employee's home for the year and be a member of the employee's household for the year; and 
• not break any local laws by engaging in the relationship; and 
• meet the IRS residency test (in general, be a citizen or national of the US, Mexico, or Canada).

If the child of the domestic partner meets similar dependency tests required by the IRS (including a gross income test, see publication 501), the value of the child's benefits may also be excluded from taxation. 

If the employee is considering certifying his or her partner as a tax dependent, consulting a tax advisor is recommended.  Falsely certifying a tax dependent may result in charges of tax fraud and disciplinary action (including termination) by the university. 

In order to estimate the cost of taxes on domestic partner benefits, use the total plan cost information on the University Human Resource Services website.  Calculate the additional taxable income using this formula: 

(Click here for a worksheet for estimating the tax cost of domestic partner health benefits.) 
 
Note: Total Plan Cost includes both the IU contribution and employee contribution.  These tax costs are in addition to the employee payroll premium contribution for health plan coverage.  The tax assessed on this additional income could be as much as 36 percent for an employee in the 25 percent federal tax bracket (25 percent federal, 7.65 percent FICA, and 4 percent state and local taxes). Tax rates for each individual vary.

Example 1:  
An employee enrolls along with a non-tax-qualified domestic partner in the IU PPO-Plus plan.  The employee's additional monthly taxable income is the difference between the total monthly cost of  Employee w/ Spouse coverage and the total monthly cost for Employee Only coverage ($1112.58 - $458.59 = $653.99).  Annual taxes can be estimated by multiplying this monthly amount by 12 and then by 36 percent (estimated federal, FICA, and state/local taxes).  The annual tax estimate is $2,825.28  Employee monthly cost is the $418.55 employee/spouse premium plus $235.44 in taxes. 

Example 2:  
An employee enrolls along with a non-tax-qualified domestic partner in the IU PPO $900 Deductible Plan. The employee's additional monthly taxable income is the difference between the total monthly cost of Employee w/ Spouse coverage and the total monthly cost for Employee Only coverage ($690.42 - $283.14 = $407.28). Annual taxes can be estimated by multiplying this monthly amount by 12 and then by 36 percent (estimated federal, FICA, and state/local taxes). The annual tax estimate is $1,759.44. Employee monthly cost is the $1.00 employee/spouse premium plus $146.62 in taxes.

Example 3:  
An employee enrolls along with his or her tax-qualified domestic partner in any IU-sponsored health care plan. There is no associated taxable income. 

Legal Concerns  

The Affidavit of Domestic Partnership required to register a domestic partner includes an attestation that the relationship is the functional equivalent of a marriage.  This includes responsibility for each other's debts and agreement to a substantially equal division of property upon dissolution of the partnership similar to the division of property that would be required of a married couple at the time of a divorce.  Due to the legal obligations that may be created between the employee and partner by submitting such an affidavit, the university advises both parties to consult an attorney for advice.  For example, the employee may want to ask their attorney whether the affidavit can be used by creditors to hold one partner responsible for the debts of the other or whether a partner may use the affidavit as entitlement to division of property acquired during the partnership. 

Termination of a Domestic Partnership

The employee must notify Indiana University in writing within 60 days of the dissolution of an IU-registered domestic partnership using a Termination of Domestic Partnership form.  Benefit plan eligibility for the domestic partner and children of the partner ends on the day of dissolution of the partnership.  Failure to notify the university may result in liability for claims paid for ineligible services and disciplinary action (including cancellation of the employee's health plan coverage or termination of employment).  In addition, failure to provide timely notice to the university jeopardizes COBRA health care continuation coverage for the domestic partner.

COBRA Continuation Coverage 

While continuation of health care coverage is not required under federal COBRA laws, Indiana University will provide such coverage under the same terms that would apply to an employee's spouse and children.  A registered domestic partner and/or children of the domestic partner enrolled in IU-sponsored health plan have 60 days from the date that eligibility for coverage ends to enroll in COBRA coverage.

Additional Questions?

For questions about Domestic Partner benefits contact University Human Resource Services ( or 812-855-7833) or a campus HR office.

Benefit plan information on these web pages is in a summary format and is not intended to replace actual plan documents. Indiana University reserves the right to amend or terminate all or any part of any benefit plan.