Introduction
Domestic partner benefits are entitlements to unmarried partners of employees that an employer may choose to offer as an added benefit to the traditional benefits enjoyed by employees. The partners can either be of the opposite-sex or same-sex as the employee. In offering the domestic partner benefits, the employer has a responsibility to determine whether the program will cover partners of the same-sex only or of the opposite-sex as well. Implementation of the domestic partner benefits offers invaluable benefits to the employer and the business as a tool to attract and maintain the best talents within the industry (Equality Maryland, 2005).
Costs of Implementing Domestic Partner Benefits Program
The provision of domestic partner benefits may be regarded as more of a philosophical than a financial matter. Even though financial resources will be committed to implementing the benefits, the cost is low when considered as an expense to acquire and retain specific talents and skills. Most companies that have implemented the program targeted same-sex marriages and negligible costs resulted thereof. As at the end of 2005, 64 percent of employers that had implemented the program reported less than one percent increase in their benefits budget (Schaefer, 2009). The costs are mainly one-off expenses that involve a reorganization of the benefits administration systems and the adjustments to the human resources department to accommodate the new benefits package. Usually, a low number of employees enroll for the program (The Human Rights Campaign, 2009).
How to Implement the Domestic Partner Benefits Program
According to Equality Maryland (2005), it is upon employers to determine the definition of eligible partners for the benefits whenever they choose to offer them. The following five elements are commonly considered in determining the eligibility of an employee’s partner:
- The partner should have attained the minimum legal age of 18 years
- The partner should not be related by blood to the employee closer than it is permitted by law for marriage.
- The shared relationship between the employee and the partner must be committed.
- The relationship between the employee and the partner must be exclusive.
- There must be financial interdependence between the employee and the partner.
The employer also has to determine whether to offer the program to same-sex couples only or to include couples of the opposite-sex. There is a need for documenting the proof for the domestic partner relationship before enrolling an employee to the program. Partners may be required to sign a written statement declaring their relationship and employers may often require proof of a financial relationship between the partners.
Arguments against the Domestic Partner Benefits Program
There is the possibility of potential abuse of the program by the employees who might cover ineligible partners since there are no legal documents to validate the partnership. The program may also face challenges from lifestyle-related morbidities such as HIV/AIDS and other ailments that are terminal, but involve high costs.
Recommendations
The provision of domestic partner benefits should best be offered to same-sex marriage couples. However, it can be offered to opposite-sex couples temporarily for a given period to entice them to get married legally. Marriage would enable them to enjoy the benefits in a spouse capacity as is already provided in the benefits scheme. The costs involved are almost negligible and should not be a deterrent factor (The Human Rights Campaign, 2009). However, the company should implement the program as a tool to attract and maintain best talents since approximately 50 percent of the population live in domestic partnership arrangements.
References
Equality Maryland (July 2005). Benefit Programs for Domestic Partners & Same-Sex Spouses. Lincolnshire, IL: Hewitt Associates.
Schaefer, J. (2009). Domestic Partner Benefits in the United States: A Discussion of Issues Related to Cost, Plan Design, and Administration. Graziadio Business Review, 12(3)
The Human Rights Campaign (Feb 2009). Domestic Partner Benefits: Cost and Utilization. accessed at < http://www.hrc.org/resources/entry/domestic-partner-benefits-cost-and-utilization>
