09/13/07 - Domestic Partner Eligibility for Health Care Benefits

Effective October 1, 2007, qualified domestic partners of eligible Carpenters Health and Security Plan of Western Washington participants may become eligible for health plan benefits, subject to satisfaction of certain enrollment and tax prepayment requirements.

The enrollment procedure for a Domestic Partner will require the following documentation:

• Completion of a new Enrollment Form.
• Completion of an Affidavit of Domestic Partnership.
• Two authenticated documents verifying joint financial responsibility from among the following:
• Joint mortgage, lease, or rental agreement.
• Durable power of attorney for health care or financial management.
• Bank statement, joint checking account, joint credit union account.
• Joint auto registration.

Documents authenticating joint financial responsibility shall be satisfactory to the Board of Trustees or their Delegates, and any dispute regarding the authenticity or adequacy of such documentation shall be resolved by the Trustees.

Under current law, the Internal Revenue Service does not generally consider Domestic Partners as dependents. Therefore, the imputed value of Carpenters Health and Security Plan coverage is taxed as supplemental wages. The tax applies whether or not the Domestic Partner submits a claim for benefits.

The taxes on the imputed value of coverage must be paid to the Trust Fund before the plan may grant eligibility to the Domestic Partner. In 2007, the imputed income from Domestic Partner coverage is $694 per month. The federal income tax withholding amount plus FICA and Medicare taxes for this coverage are $226 per month. The Trust remits these taxes monthly to the IRS. The Trust requires an initial deposit of the first and last month (2 months) of prepaid taxes for coverage to begin. After your initial payment, the Trust will provide you with a remittance form each month. A participant must have earned eligibility in a given month in order for a Domestic Partner to be eligible for coverage in that month.

The Trust will assume that your Domestic Partner is not your tax dependent unless you submit evidence of dependency sufficient to meet Internal Revenue Code requirements. Generally, you must be able to show that the Domestic Partner relies on you for more than 50% of his or her support. If you think that your domestic partner may meet the dependency qualifications of the IRS, request and read the Domestic Partner Coverage – Affidavit of Dependent Status form available from the Trust Office. The Trust determines whether coverage for the domestic partner is taxable, based on information in the affidavit. These rules are complex, you should consult a tax advisor before asserting tax dependency for a Domestic Partner.

A qualified Domestic Partner will be provided the same benefits under the plan as an eligible spouse. Natural and adopted children of a qualified Domestic Partner may be enrolled as dependents under this plan with appropriate documentation. If you enroll dependent children of your Domestic Partner, the value of coverage will be considered taxable income to you, since current IRS rules prevent them from qualifying as your dependents.

If you are interested in obtaining benefits for a Domestic Partner, you may contact the Trust Office at (206) 441-6514 or (800) 552-0635. Enrollment documents will be mailed to you upon request. You may also link to the documents directly from this article or from the Health & Security – Forms link on the Homepage of this website.

Sincerely,

Board of Trustees