[MyOEBB] OEBB -- DOMA, QSCs & Imputed Taxes

[MyOEBB system updates]

Dear Business Managers, Superintendents & Benefits Administrators:

In response to the Supreme Court ruling on the Defense of Marriage Act (DOMA) OEBB has updated the MyOEBB system to allow same-sex spouses.

On, or around, November 1, 2013, we plan to send the attached letter to all subscribers who currently have a same-sex domestic partner listed as an eligible dependent in the MyOEBB system. The letter will include a link to the Mid-Year Change Form they can use to request to update their domestic partner's relationship status to spouse, if applicable. OEBB will allow members who were married in a state that recognizes same-sex marriages on or before September 30, 2013, to submit a change form through December 16, 2013. The change will be (must be) effective retroactively to October 1, 2013. (This is the effective date of the federal ruling guiding this change.) The "Marriage" QSC in the MyOEBB system will be temporarily expanded to allow administrators to make this change.

Members who married, or marry, a same-sex spouse in a state that recognizes same-sex marriages on or after October 1, 2013, have the 31-day change period to add the spouse to OEBB coverages.  However, we will allow an extension for those members who were married October 1 through November 15, 2013 to complete and submit the Mid-Year Change Form through December 16, 2013 as well to ensure they are allowed a 31-day window from receipt of our letter. Coverage for these new spouses must be effective the first of the month following the date of the marriage.

If you have already communicated with your members on this issue and would prefer OEBB exclude your employees and early retirees from this mailing, please send an email to Jackie Cowsill at jackie.cowsill at state.or.us<mailto:jackie.cowsill at state.or.us> requesting to be excluded by close-of-business Tuesday, October 22, 2013.

OEBB cannot provide specific tax or financial advice, so please contact your tax advisor or financial consultant with any questions regarding payroll processes, imputed tax assessments, W-2 reporting, etc. However, below is an excerpt from some guidance we received from Towers Watson.  Towers Watson gave us permission to share this with you:

*         Married people who are also Registered Domestic Partners:  treat the same as married opposite-sex couples for both federal and state purposes.
*         Married people who are NOT Registered Domestic Partners: treat the same as married opposite-sex couples for federal tax purposes. State tax treatment is still being analyzed at this time (see below).
*         Not married, but who are Registered Domestic Partners:  No change compared to all years since effective date of Oregon Family Fairness Act (February 4, 2008).
*         Not married and who are NOT Registered Domestic Partners:  No change; still considered single for federal and state purposes.

As for the Oregon state tax issues, below is a copy and paste from the Oregon Department of Revenue website (as of October 14, 2013):

We are currently waiting for guidance from the Oregon Department of Justice regarding the impact of the Supreme Court ruling on the Defense of Marriage Act on registered domestic partners in Oregon.

We will update this webpage once we receive that guidance. We will also address same sex couples that have married in another state and moved to Oregon or have Oregon-source income.

Please continue to check this webpage for updates.

http://www.oregon.gov/dor/pertax/pages/rdp.aspx.


If you have further questions about implementing this QSC in the MyOEBB system, or the communication we plan to send to members, please call OEBB Member Services at 888-469-6322 or send an email to:  oebb.benefits at state.or.us<mailto:oebb.benefits at state.or.us>.

Sincerely,

Denise L. Hall
Denise L. Hall, Deputy Administrator
Oregon Educators Benefit Board
http://egov.oregon.gov/OHA/OEBB<http://egov.oregon.gov/DAS/OEBB>

OEBB encourages all members to stay healthy and be happy!!!!     Pass it on.....
http://www.oregon.gov/OHA/OEBB/pages/welllinks.aspx




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