N.J. Admin. Code § 17:1-5.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:1-5.6 - Domestic partners

(a) Resolutions by the employer to adopt the provisions of P.L. 2003, c. 246, the Domestic Partnership Act, were accepted through February 19, 2007. After February 19, 2007, same-sex couples were allowed to establish a civil union in New Jersey under P.L. 2006, c. 103, but were no longer permitted to enter into a domestic partnership in New Jersey. Effective October 21, 2013, same sex marriages were legally recognized in New Jersey, and effective June 26, 2015, same sex marriages were legally recognized across the United States. An employer who decided to adopt the provisions of P.L. 2003, c. 246, had to adopt the provisions for all its employees and retirees in all of the retirement systems in which it participated and not just members of a specific retirement system.

1. An employer was also permitted to adopt the provision of P.L. 2003, c. 246, for the State Health Benefits Program (SHBP) and School Employees Health Benefits Program (SEHBP) separately from the resolution for the retirement systems, through February 19, 2007. Once adopted, such a resolution may only be rescinded on a prospective basis. Anyone receiving a survivor's benefit, SHBP coverage, or SEHBP coverage based on the old resolution shall continue to do so until such time as they no longer meet the definition of widow, widower, surviving spouse, or dependent.

2. A retired employee of a public employer that has not elected to provide coverage for domestic partners or does not participate in the SHBP or SEHBP cannot add a domestic partner to SHBP or SEHBP coverage.

(b) Pursuant to P.L. 2003, c. 246, the Domestic Partnership Act ( 26:8A-1et seq.), the SHBP, SEHBP, and State-administered retirement system provisions found in sections 41 through 56 of the Domestic Partnership Act only apply in the case of two persons who are of the same sex and have established a domestic partnership on or before February 19, 2007, in New Jersey. Therefore:

1. The domestic partner of a member or retiree who is of the opposite sex of the member cannot meet the definition of widow, widower or surviving spouse found in 18A:66-2, 43:6A-3, 43:15A-6, 43:16A-1, 53:5A-3 and cannot receive any statutory survivor benefits through the retirement systems;

2. The domestic partner of a participant in the SHBP or SEHBP who is the opposite sex of the participant cannot enroll for SHBP or SEHBP coverage; and

3. If the widow, widower or surviving spouse of a member or retiree is receiving retirement benefits and then enters into a domestic partnership with a member of the opposite sex, that widow, widower or surviving spouse may continue to receive the retirement benefits.

(c) Since the Federal tax code does not view a domestic partner in the same manner as a spouse, any benefit an employer provides its employees or retirees for a domestic partner will be taxable to the employee or retiree. The employer who adopts the domestic partner benefit for its active and retired employees should report the value of the benefit provided for the domestic partner on Form W-2 as income to the employee or retiree, and the value of the benefit will be subject to Federal income, Social Security, and Medicare taxes. The adopting employer shall also be responsible for the employer share of Social Security and Medicare taxes due on the domestic partner benefit, including the taxes due on any State paid benefits.

1. The income reported by the employer shall be the full cost of single coverage in the plan in which the domestic partner is enrolled.

2. Anything that the employee or retiree pays for the domestic partner coverage through premium sharing arrangements will reduce the amount of the income reported to the Federal government for the domestic partner benefit. These premiums cannot be made on a pre-tax basis unless the domestic partner meets the Federal definition of dependent. If the domestic partner qualifies as a dependent of the covered member for Federal income tax purposes, the value of the domestic partner benefit will not be taxable to the employee or retiree, and any premium paid by the employee toward the domestic partner benefit can be deducted on a pre-tax basis through the State's Section 125 TaxSave Program. To be eligible for the tax exemption, the employee or retiree must file a certification of tax dependency with the Division.

(d) The Division will implement equitable distribution for a domestic partner if an acceptable order as described in 17:1-1.1 2 is received by the Division.

N.J. Admin. Code § 17:1-5.6

Amended by 48 N.J.R. 1306(a), effective 6/20/2016