Public Sector Consulting

The Segal Company has been a leader in the evolution of domestic partner benefits. (The terms "domestic partner" and "domestic partner benefits" are defined below.) Since 1990, we have helped dozens of employers to consider and/or introduce domestic partner benefits. Our clients in this area have included Fortune 100 corporations, including high-tech companies, hospitals, colleges and universities, multiemployer health and welfare funds and state and local governments.

The Segal Company offers a range of domestic partner benefits consulting services. Specifically, we can:

• Inform senior management about domestic partner benefits,
• Work with the employer's cross-functional team to develop recommendations,
• Assist in defining terms and eligibility criteria,
• Review recruitment and diversity issues,
• Analyze the projected costs of including domestic partners and dependents in benefit offerings,
• Review tax implications and calculate imputed-income amounts associated with benefits for domestic partners,
• Work with insurance carriers to implement policy extensions,
• Provide emerging data on cost trends and related matters,
• Design and/or review employee communications materials, various affidavits and enrollment forms and administrative documents procedures, and
• Introduce domestic partner coverage to employee groups.

Segal Company experts have written extensively on domestic partner benefits and have been quoted widely. For more information about our services in this area, please contact us by clicking on the red square at the bottom of this page or click here for an abstract of an issue of the Executive Letter addressing domestic partner benefits in detail.

What is a "domestic partner?"

The term "domestic partner" describes adults who share a singular, emotional and financial relationship but who either choose not to marry or cannot legally marry. Since the term has no specific legal meaning, it is up to each employer to define precisely which criteria will be used to determine the existence of domestic partnership. Examples of criteria employers have used to determine the existence of a domestic partnership between two adults include: maintaining the same permanent residence; having a close, personal relationship; sharing responsibility for each other's welfare as evidenced by financial interdependence; and expressing the intention for the relationship to be permanent. Some municipalities maintain domestic partners registries which are used by some employers to enable employees to demonstrate a domestic partnership.

What are "domestic partner benefits?"

Although there are no explicit provisions in the law that require employers to make the exact same benefits package available to employees' domestic partners that spouses receive, what is typically meant by "coverage for domestic partners" is the extension of some or all benefits currently provided to employees' spouses to other employees' unmarried partners, including health insurance converge. Plans that offer supplementary benefits, such as dental benefits, often extend those benefits as well. Other benefits which frequently extend to domestic partners include employee assistance programs (EAPs), dependent life insurance (where available), family leave (i.e., for the birth or adoption of a child or the illness or death of a family member), relocation assistance and financial counseling. Some employers offer certain work/life programs to employees' domestic partners. Employees can usually name anyone for certain survivor benefits (such as life insurance or 401(k) plan account balances) and could, of course, name a domestic partner.

What are the key issues to consider before introducing domestic partner benefits?

Before introducing domestic partner benefits, employers should answer the following questions:

• Who will be covered (i.e., same-sex couples, opposite-sex couples and/or employees' other adult dependents)?
• Which benefits will be offered?
• Will any human resources policies be revised to accommodate domestic partners (e.g., bereavement leave and matching contributions)?
• What will be the enrollment requirements (i.e., employees be required to file an affidavit and/or provide other types of documentation.)?

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