IMPLICATIONS OF THE OVERTURNING OF THE DEFENSE OF MARRIAGE ACT

07/08/2013

On June 26, 2013, the Supreme Court overturned the Defense of Marriage Act. There will be immediate implications for employers with employees in the 12 states and District of Columbia that allow for same sex marriage.

  • Employees with a same-sex spouse who resides in a state that recognizes same-sex marriage-e.g. Massachusetts-the imputed income for healthcare coverage should be stopped immediately and corrected retroactive to January 1, 2013. That would be the same outcome for the covered child (if the child was the child of the non-employee spouse) because the employee is now the step-parent.
  • Ability to pay for same sex spouses on a pre-tax basis will also trigger a qualifying event for employees to add same sex spouses and dependents of those spouses to qualified plans; William Gallagher Associates is verifying with carriers as to what date will be used as this qualifying event
  • Additional guidance on HIPAA, COBRA and 401k rights will be updated as regulations are released

Click here for WGA’s fact sheet on DOMA.

Please contact your client team at WGA for more information.