Domestic partner benefit

Purpose

The purpose of this policy is to define the University’s policy and guidelines for providing insurance benefits to domestic partners of full-time employees of the University.

Policy

Lynn University offers health benefits to eligible employees’ domestic partners, subject to:

1. Satisfaction of the eligibility requirements described below and the terms of the University’s group medical, dental and life insurance plans (the “Plans”); and

2. The tax implications for extending health benefits to domestic partners.

Lynn University also offers its educational assistance program to eligible employees’ domestic partners (the “Program”), subject to:

1. Satisfaction of the eligibility requirements described below and the terms of the Program; and

2. The applicable tax implications.

Definitions

Domestic Partners—are two individuals who:

1. Are not married to, or legally separated from, another individual, and are not in a domestic partner relationship with any other individual;

2. Are each other’s sole domestic partner and intend to remain so indefinitely;

3. Are at least the age of consent in the state in which they reside and are mentally competent to consent to contract;

4. Are not related by blood to a degree of closeness that would prohibit marriage in their state of residence;

5. Live together in the same residence and presently intend to reside together indefinitely; and

Mutually responsible for each other’s common welfare and financial obligations.

Procedures/Guidelines

I. Domestic Partner Coverage

An employee’s Domestic Partner is eligible for the same health coverage, which may include medical, dental and/or life insurance coverage, and educational assistance program benefits that a spouse of such Employee would be eligible to receive from Lynn University, provided that they satisfy all of the applicable requirements for coverage under the Plans and the Program, and timely submit all of the required information and documentation (including the Affidavit of Domestic Partnership) to Employee Services.

Important Note: The Internal Revenue Service (“IRS”) generally does not recognize domestic partners as eligible dependents under the Internal Revenue Code’s provisions regarding employer-sponsored health plans, cafeteria plans and educational assistance programs. Therefore, the fair market value of the health coverage or Program benefits provided to a Domestic Partner constitutes taxable income to the employee. This means that the value of the coverage or Program benefits will be subject to Federal income tax and payroll taxes such as FICA and Medicare. (If you believe that your Domestic Partner may qualify as a dependent under the Internal Revenue Code, please contact Employee Services.)

An Employee who enrolls a Domestic Partner for coverage under the Plans or the Program will be taxed on the value of the health coverage or Program benefits on each pay period.

In addition, please note that premiums for Domestic Partner Coverage are paid by payroll deduction each pay period, and may only be made on an after-tax basis in accordance with IRS rules.

II. Enrollment for Domestic Partner Coverage

To enroll a Domestic Partner for coverage under the Plans or Program benefits, the employee and Domestic Partner must complete and sign an Affidavit of Domestic Partnership (which must be notarized), and submit the Affidavit to Employee Services along with all other enrollment information and documentation requested by Employee Services.

If, at any time, an employee or Domestic Partner terminates the coverage of a Domestic Partner for any reason, such Domestic Partner may not re-enroll for coverage under the Plans or the Program until the next open enrollment period or upon the occurrence of a “life event” that would apply to an employee’s spouse under the terms of the Plans or the Program, and will be subject to all other generally applicable enrollment rules under the Plans or the Program.

In addition, notwithstanding the above, an employee may not seek to enroll a Domestic Partner for coverage under the Plans or the Program within one (1) year of the termination of another Domestic Partner’s coverage.

Important Note: If any of the information contained in the Affidavit of Domestic Partnership or other submitted documentation is found to be incomplete, inaccurate or fraudulent, the Employee and Domestic Partner will be required to reimburse Lynn University, its insurers and agents for any expenditures made by them for benefit claims, processing fees, administrative charges and all other costs (including any attorneys’ fees incurred by them in order to collect these amounts) on behalf of a Domestic Partner.

III. Terminations of Domestic Partnership

If, after executing the Affidavit of Domestic Partnership, an Employee and his/her Domestic Partner cease to satisfy any or all of the eligibility criteria for Domestic Partner Coverage identified

in the Affidavit, such Domestic Partnership shall be considered terminated for purposes of eligibility for Domestic Partner Coverage under the Plans and/or the Program.

Upon termination of a Domestic Partnership, the Employee must complete an Affidavit of Termination of Domestic Partnership (the “Termination Affidavit”). The Termination Affidavit must be completed and filed with Employee Services within thirty (30) calendar days of such change in status.

Coverage under the Plans and/or the Program for the former Domestic Partner will terminate as of 11:59 P.M. on the date that the Termination Affidavit is signed (or earlier, if the Employee fails to submit the Affidavit within thirty (30) days of the failure to satisfy any one of the criteria set forth in paragraph 2 of the Affidavit).

Important Note: If, for any reason, Lynn University, its insurers or agents are required to make any expenditures for benefit claims, processing fees, administrative charges or any other costs relating to the coverage of a former Domestic Partner following the coverage termination date set forth in the preceding paragraph, the Employee and former Domestic Partner will be required to reimburse Lynn University, its insurers and agents for any these expenditures (including any attorneys’ fees incurred in order to collect these amounts).

IV. Amendment, Termination, and Interpretation

Lynn University reserves the right, in its sole and absolute discretion, to amend, modify or terminate the Domestic Partner coverage under this Policy (as well as all of the other terms of the Plans), in whole or in part, at any time and for any reason. In addition, Lynn University (and its designees) has the sole and absolute discretionary authority to interpret and administer this Policy, the Plans, and the Program, as they may be amended from time to time.

To learn more about this policy or the supporting procedures, please contact Employee Services

Policy updated on: Oct. 24, 2018