Clarification on Out & Equal, Out & Costly Post

We received the following comment on Out & Costly on Mar 2, 2007 (sic):

“You failed to include the fact that the tax for domestic partmer benifits are paid by the employee and not the employer as the plan is a non-qualifying 125 plan.”

AFTAH’s response:

That information was included in the post:

“…Out & Equal’s ‘spousal equivalency policy’ would require the employer to compensate the homosexual employee for the absence of tax exemption on homosexual partner and children health insurance costs…. Because there is no federal recognition of ‘gay marriage,’ although a homosexual may receive domestic partner benefits, his contribution is paid with taxable dollars.”

The point of the latter section of the post, perhaps made more clearly:

  • Currently, some employers do — and some employers do not — offer domestic partner benefits (DPB) to homosexuals; additionally, some offer DPB also to cohabiting heterosexuals as well.
  • Most employees contribute some portion of the cost of their benefits through payroll deduction.
  • Under current federal law, single employees (whose benefits may cover self only, or self and children) pay their portion with pre-tax dollars; married employees (whose benefits normally cover spouse and children) also pay their portion using pre-tax dollars.
  • Federal law recognizes marriage between one man and one woman; it does not recognize “domestic partnership.” Therefore, homosexual (or cohabiting heterosexual) employees who currently have access to DPB pay their contribution for a “partner” and/or “partner’s” children using taxable dollars, but…
  • A homosexual (or cohabiting heterosexual) employee still pays the contribution toward his/her own benefits and his/her own children’s benefits with pre-tax dollars, just like any other single employee.
  • Out & Equal is advocating that employers pay homosexuals (or cohabiting heterosexuals) using DPB more than married heterosexuals to compensate the pre-tax/taxable difference on the partner/partner’s children portion.

AFTAH is not in favor of domestic partner benefits for homosexuals (or for cohabiting heterosexuals), nor are we in favor of the 15-step Out & Equal agenda for corporate America.

This article was posted on Monday, March 5th, 2007 at 1:06 pm and is filed under AFT Mail Bag, Corporations, Out & Equal. You can follow any updates to this article through the RSS 2.0 feed.

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