Domestic Partnership Benefits FAQ - Contract College

What is the current cost of dental coverage before adding a domestic partner?

The State of New York pays the full cost of this coverage, but you must enroll in participate in the plan.

What is the current individual cost of health coverage before adding a domestic partner?

Rates based on nonexempt staff pay periods (biweekly,26 pays) and exempt staff and faculty pay periods (semimonthly, 24 pays).

Please review the Contract College Medical Rates effective June 29, 2023, to compare individual and family rates.

• 2023 Medical Rates (pdf) - effective 06/29/2023

Note: These rates do not reflect the imputed income cost. For more details, please click on the tab below, "What does it mean in terms of actual cost to add my domestic partner?"

If you are a new faculty/staff member, you should complete and return the PS-425 form and associated documentation at the same time you complete and return your enrollment form, within 28 days of your hire date. Coverage will be effective on the 29th day.

If you are already enrolled and are enrolling a new partner or are enrolling an existing partner who has recently had a qualifying event, we will need the PS-425 form and PS-404 at the same time, along with documentation that you have just met the requirements for a new enrollment/qualifying event.

If your partner has had no qualifying event, you may enroll him or her using the PS-425 form and PS-404 and associated documentation, but there will be a 10-week waiting period applied to the coverage.

Yes. There are a number of pieces of documentation that will be necessary to enroll your partner and that information can be found on the PS-425. Questions can be directed to HR Services & Transitions at (607) 255- 3936.

If you are a benefits eligible faculty/staff member, your domestic partner and your partner’s child(ren) may be added to your health and dental insurance.

Domestic partners are not considered qualified dependents under the Internal Revenue Code, Section 152. Thus, the tax treatment for domestic partners must be handled differently than for qualified dependents.

The employer contribution to the cost of health plan coverage for qualified dependents does not become taxable income to the employee. For non-qualified dependents, domestic partners and their children, a portion of the employer contribution to the overall cost of the health insurance plan must be reported to the IRS as taxable income, also known as “imputed income” in tax language. Imputed income will be added to your annual salary for reporting purposes. It applies even if you cover other qualified dependents on your health coverage.

However, if your partner qualifies as a dependent under IRC 152, there is no imputed income. If your partner or the child(ren) of your partner qualifies under this section (and ONLY if they qualify) you must complete a PS-425 Domestic Partner Enrollment Application and submit it with your other enrollment documents. If your domestic partner’s tax status changes during the year, no retroactive changes will be made to imputed income. It is your responsibility to amend your tax return to correct taxable income. If you have questions regarding your eligibility under Section 152, please contact your tax advisor.

According to current IRS rules, unless your domestic partner is a tax-qualified dependent, you will need to pay taxes on the “imputed income” discussed above as well as the portion of the premium that you pay for your non-tax-qualified dependent. The charts below provide the per payroll amount of after-tax premium as well as imputed income for individuals enrolling in family coverage. Please note, this is not the amount you will pay in taxes per payroll that varies by individual. These are the additional amounts of money that you will have a tax liability for. Your premium will be no different than any other family plan premium, but you will be responsible for the taxes on the portion that covers a non-tax-qualified dependent.

As an example, the current premium for a biweekly employee with an annual salary over $49,670, enrolled in the Empire Plan, is $280.06, so if you subtract $72.68 (the cost of single coverage) you are left with $207.38. As a result, the amount that would be deducted from your paycheck on an after-tax basis is $207.38. In addition to this, you are responsible for the taxes on the additional $246.84 in taxable imputed income that Cornell pays for that coverage.

After-Tax Premiums for 6/29/2023 

Imputed Income for the Medical Plans - 6/29/2023

Imputed Income for the Dental Plan - 1/1/2023

Detailed questions regarding the tax implications of covering a domestic partner are best discussed with your tax advisor.

Your partner loses their eligibility the day you terminate the relationship, we will need a signed PS-404 to remove the partner, as well as a PS-425 form. Please refer to later in this document concerning the University provided benefits.

Regardless of an enrollee’s employment status, Medicare is primary for a domestic partner who is age 65 or older. If you have a domestic partner under age 65 who is Medicare eligible due to disability, NYSHIP is primary while you have coverage as an active employee; once you retire or otherwise terminate employment, Medicare becomes primary. If your domestic partner fails to enroll in Medicare A & B, then the Plan will take Medicare’s benefit into consideration, and the portion Medicare would have paid will be your responsibility. You will be reimbursed the Medicare Part B premium (excluding any penalty for late enrollment) in the form of a quarterly refund check from the Office of the State Comptroller. Please contact your local Social Security Administration for further questions on enrolling in Medicare A & B.