Plainfield Adopts DP Benefits

March 21, 2006

PLAINFIELD—On Monday night, the Plainield City Council voted unanimously to adopt two resolutions extending health benefits and pension benefits to domestic partners of city employees.

The 6-0 vote came at the regular meeting; there was no opposition raised. City employees will now be able to add their registered domestic partners as well as any dependent children to their health plan and their partner will now be entitled to receive their pension benefits upon the employee's death.

In order to obtain the benefits, the employee must show proof of eligibility in the form of a Certificate of Domestic Partnership, if they registered in New Jersey, or an appropriate form if the couple registered in Connecticut, Vermont, Maine, California, or in one of the local registries, such as New York City. Couples who married in Massachusetts are not eligible unless they have registered as domestic partners or in a civil union. See this article on Registration of Domestic Partnerships for more information.

Couples should also be aware that there are tax implications of these benefits. To the extent the City pays the premiums for the partner, the IRS considers the payments as imputed income, which is taxable to the employee. As a result, the W-4 statement issued for 2006 will reflect this additional income, and there may be additional witholding. See Tax Implications of DP Benefits for more information.

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