-- BREAKING NEWS --
Attention: New Jersey Employers
NJ Civil Union Law Is Now In Effect. Review Your Benefits Contracts, and Evaluate the Term 'Spouse'.
Effective February 19, 2007, under P.L. 2006, c 103 Section 4a, “civil union couples shall have all of the same benefits, protections and responsibilities under the law, whether they derive from statute, administrative court rule, public policy, common law or any other source of civil laws, as are granted to spouses in a marriage.”
This act does not change provisions of the New Jersey Domestic Partnership Act affecting employees.
About the February 19 Effective Date:
While benefit mandates generally apply to in force plans on the first renewal or after the effective date of a mandate, these new rights are effective on all plans as of February 19, 2007. All plans that include dependent coverage should be amended or administered to provide coverage to civil union couples.
What You Need to Consider:
- HIPAA Privacy- Some of your employees may be reluctant to discuss these issues since HIPAA does not protect gender information. However, the New Jersey laws against discrimination specifically prohibit discrimination against individuals as a result of their marital status, which now includes civil unions. Please share this information with your employees; it is essential that employers enroll all civil union employees into their benefits programs in the same fashion as they would any other eligible dependent.
- Federal Defense of Marriage Act (DOMA)- The words “marriage” and “spouse” refer only to opposite-sex couples in federal laws. DOMA provides that States do not have to recognize same-sex marriages from other states. NJ will recognize civil unions or marriages from other states or nations that allow them.
Same sex couples that wish to enter into a civil union must obtain a civil union license. The New Jersey Domestic Partnership Law is no longer available to same sex couples, except to couples over the age of 62, whether they are same sex or opposite sex. Couples over age 62 may continue to register domestic partnerships under the law. If your current plan covers same sex domestic partnerships, then these couples will not be affected. In the event they elect to enter into a civil union, the domestic partnership would be terminated.
- ERISA- Although ERISA preempts state laws governing certain employment benefits, it does not displace state insurance laws or benefits provided through insurance plans. The employer paid cost of providing coverage to civil union partners who are not dependents under the Internal Revenue Code will be considered taxable compensation to the employee for federal income tax purposes. The benefits received by the partner will be taxable. The dependents are also not eligible to participate in a Flexible Spending Account under Section 125 plans or for pre-tax treatment of premiums paid for their partner, unless the partner qualifies as a dependent under federal law.
- Retirement Plans-This law does not impact your retirement plans except that those that enter into a civil union can designate their partner as beneficiary under their retirement plan.
- COBRA- Is not available to partners under a Civil Union since the NJ legislation specifically states that it has no effect on federal law. All employers that qualify for benefits under the NJ Small Employer Reform Marketplace will have to extend benefits under the NJ State Continuation.
Your insurance provider should have communicated their administrative procedures directly to you in order to comply with this new legislation.
If you have further questions on how the Civil Union Law affects your benefit programs, contact your NIA Employee Benefits Specialist or:
Denise Angleman
Senior Vice President, Employee Benefits
201.845.6600, Ext. 1259
dangleman@niagroup.com
*Disclaimer: The above bulletin is strictly a summary of recently imposed legislation and is not, nor should it be construed as, legal counsel. Please consult your legal department for legal advice.
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