1. How do the Supreme Court rulings affect my UC benefits for my same-gender spouse and me?
  2. How do the Supreme Court rulings affect my UC benefits for my same-gender domestic partner and me?
  3. When will deductions for taxes on imputed income for UC's contribution to the cost of health insurance stop?
  4. Does the ruling allow for adjustments to my imputed income in previous years if I was married earlier, and will I get a refund of the taxes on imputed income I've already paid? If so, will UC provide revised W2's so I can file an adjusted income tax return?
  5. When can I change my withholding (W-4 form) to reflect my married status?
  6. Will there be a special enrollment period when I can enroll my spouse in UC health benefits? We married prior to the Supreme Court ruling.v
  7. I marry my domestic partner, can I enroll him/her in health benefits?
  8. If I marry my domestic partner and I already cover him/her in my benefits, can we change plans?
  9. When can I get reimbursement from my Health FSA for my spouse's medical expenses?
  10. When can I obtain a spending card from CONEXIS?
  11. Can my same-sex spouse's medical expenses from earlier this year be reimbursed?
  12. Will UC treat same-sex spouses exactly the same as opposite-sex spouses with regard to all retirement benefits?
  13. I named my domestic partner as contingent annuitant when I retired; do I need to do anything to update the records now that our marriage is legal?
  14. I established my domestic partnership with UC several years ago and am now planning to get married. What date will UC use to establish eligibility for survivor benefits?
  15. If my spouse and I move to a state that does not recognize our marriage, what will be the effect on our benefits and/or tax treatment?

1. How do the Supreme Court rulings affect my UC benefits for my same-gender spouse and me?

UC has been a leader in providing equity for same-sex spouses and partners — offering health benefits coverage for same-sex partners since 1998 and UC Retirement Plan survivor benefits since 2001. The Supreme Court rulings will make several changes to the tax treatment of these benefits. For example:

  • Employees in same-gender marriages are no longer subject to taxes on the "imputed income" for UC's contribution to the cost of health insurance coverage provided for a same-gender spouse enrolled in UC-sponsored benefits.
  • The employee's portion of the cost of covering a same-sex spouse can be deducted from your pay on a pre-tax basis rather than on an after-tax basis.
  • A same-gender spouse's medical expenses can now be paid from a Health Flexible Spending Account (FSA) and an employee who marries can enroll or make a mid-year change in contributions.
  • A same-sex spouse's earned income is now considered in determining how much an employee can contribute to the Dependent Care FSA.
  • Although UC already provides COBRA coverage for same-sex spouses, COBRA coverage is now legally required.
  • Same-gender surviving spouses are no longer treated as "non-spouse" beneficiaries for the purpose of retirement rollover rules.

2. How do the Supreme Court rulings affect my UC benefits for my same-gender domestic partner and me?

The rulings do not affect same-gender domestic partners.

3. When will deductions for taxes on imputed income for UC's contribution to the cost of health insurance stop?

Programming changes to UC's payroll and HR systems needed to implement these tax changes are now complete. Employees and retirees who have a same-gender spouse that is enrolled in UC-sponsored benefits will need to self-identify in order to ensure the taxes on imputed income are not withheld.

Employees should submit the UPAY 850 form to their local benefits office. Retirees should submit the UBEN 100 form to the UC Retirement Administration Service Center. There is no need to complete the entire form, but be sure to include employee or retiree name, employee ID number, spouse's name and marriage date. Be sure to sign the form.

4. Does the ruling allow for adjustments to my imputed income in previous years if I was married earlier, and will I get a refund of the taxes on imputed income I've already paid? If so, will UC provide revised W2's so I can file an adjusted income tax return?

Yes. You should be able to reclaim both income and FICA (Social Security and Medicare) taxes for open taxable years — usually up to three years. However, UC cannot provide revised W2's until it receives further instructions on the process for reclaiming FICA taxes from the IRS. Once guidance is issued UC will make any adjustments needed to be consistent with the law as soon as possible. UC will assist employees in understanding their rights once the guidance becomes clear. Please note that it may be possible to recoup income taxes without a revised W2 form; please see your tax advisor for assistance.

5. When can I change my withholding (W-4 form) to reflect my married status?

Employees have the ability to change their tax withholdings to reflect their married status at any time. Simply log into your personal accounts on At Your Service Online. Then select "Tax Withholdings" under "Income & Taxes." However, the University suggests that you consult with a tax advisor before doing so to ensure that you have enough withheld at year-end to meet your tax liability.

6. Will there be a special enrollment period when I can enroll my spouse in UC health benefits? We married prior to the Supreme Court ruling.

Yes, if you married prior to the Supreme Court rulings and your spouse is not currently covered by UC's health and welfare programs, you have until Dec. 31, 2013, to enroll your spouse and any eligible family members in health and welfare plans due to changes in tax treatment. Coverage is effective on the date of receipt of the enrollment form. If you choose to enroll your family members during UC's annual Open Enrollment, coverage will be effective Jan. 1 of the following year. Two important notes:

  • You will be asked to identify your spouse's gender so that your health plan can provide appropriate benefits, such as free women's preventive health care.
  • You may be required to verify your spouse's eligibility through UC's family member eligibility verification (FMEV) process.

7. If I marry my domestic partner, can I enroll him/her in health benefits?

Yes, UC allows any employee or retiree who marries to enroll his or her spouse in health benefits. If you marry your same-gender domestic partner and he or she currently is not covered by UC's health and welfare programs, you may add your new spouse to health and welfare plans within 31 days of the marriage. Coverage is effective on the date of marriage. You may also enroll your spouse during UC's annual Open Enrollment period; in that case, coverage would be effective Jan. 1 of the following year. Please note that you will be required to verify your spouse's eligibility through UC's family member eligibility verification (FMEV) process.

8. If I marry my domestic partner and I already cover him/her in my benefits, can we change plans?

Yes, if your same-sex partner is currently covered by UC's health and welfare programs and you marry, you may change plans now due to changes in tax treatment. This is a limited eligibility period applicable only to medical, dental, vision and Health and Dependent Care Flexible Spending Accounts. Your coverage will be effective on the date of receipt of the enrollment form. Per UC's family member eligibility verification (FMEV) process, newly married couples will be required to submit proof of their marriage.

9. When can I get reimbursement from my Health FSA for my spouse's medical expenses?

A same-gender spouse's medical expenses can now be paid from a Health FSA. An employee who marries can enroll or make a mid-year change in contributions. The new annual contribution amount applies to all expenses incurred during the calendar year, less any reimbursements that were made before the change.

If you married your same-gender spouse under prior law, or you plan to marry your same-gender partner and that person is not currently enrolled on your FSA plan then coverage will be effective on the first of the month after you enroll, subject to payroll deadlines.

10. When can I obtain a spending card from CONEXIS?

CONEXIS benefit cards are issued to a UC employee at the time of enrollment. Initially, one card is issued in the employee's name. Once the employee's card is activated, you may obtain additional cards showing your same-gendered spouse via your account on the CONEXIS website or by calling CONEXIS at 1-800-482-4120. Once your spouse is enrolled, reimbursement claims may be submitted to CONEXIS by using a claim form, along with appropriate documentation.

11. Can my same-sex spouse's medical expenses from earlier this year be reimbursed?

Eligible reimbursement is based on the effective date of your enrollment in the FSA. If you've been enrolled since Jan. 1, for example, your spouse's expenses incurred earlier this year would be eligible for reimbursement. If you enroll mid-year — effective Aug. 1, for example — expenses incurred before Aug. 1 are not eligible.

12. Will UC treat same-sex spouses exactly the same as opposite-sex spouses with regard to all retirement benefits?

Yes, UC is working as quickly as possible to review the legal, policy and operational implications of the Supreme Court rulings on California's Proposition 8 and the federal Defense of Marriage Act (DOMA) for the university and its employees and retirees. UC wants to ensure that in light of these rulings that employees and retirees see equitable treatment under the University of California Retirement System.

13. I named my domestic partner as contingent annuitant when I retired; do I need to do anything to update the records now that our marriage is legal?

No, you do not need to update any records with respect to a named contingent annuitant after you have retired. The tax treatment of the retirement benefit received by a contingent annuitant is the same regardless of whether the person is a domestic partner, spouse or any other individual.

The contingent annuitant may be any person you choose and the selection of the option and contingent annuitant becomes irrevocable on the retirement date on the election form.

14. I established my domestic partnership with UC several years ago and am now planning to get married. What date will UC use to establish eligibility for survivor benefits?

Survivor benefits are paid to your spouse or domestic partner (if your marriage or partnership began at least one full year before retirement and continues uninterrupted until your death). If you marry your partner, UC will take the duration of both your domestic partnership and your marriage into consideration when determining if your survivor has met the one-year requirement.

15. If my spouse and I move to a state that does not recognize our marriage, what will be the effect on our benefits and/or tax treatment?

Based on guidance from the IRS, the changes to benefits for purposes of federal tax-treatment resulting from the Supreme Court rulings apply regardless of where you live.