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DOMESTIC PARTNER BENEFITS

Presentation to the Administrative CommitteeNovember 6, 2012

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Recap of Last PresentationTexas Governmental Entities and Transit Properties ThatOffer Domestic Partner BenefitsTexas Public Policy and LawDARTs Health Plan

Means Utilized By Governmental Entities to Offer DomesticPartner BenefitsCosts

Plan SummariesDART A Potential Plan Design

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Texas Governmental EntitiesOffering Domestic Partner Benefits

Transit Properties that OfferDomestic Partner Benefits

City of Dallas AC Transit Oakland & East Bay, CA

City of Fort Worth Los Angeles Metro

DFW International Airport NJ TRANSIT

City of Austin North County Transit District Oceanside,CA

City of El Paso Pierce Transit

County of El Paso Valley Transportation Authority

City of San Antonio

Travis County

Pflugerville Independent School District

Dallas County

Texas Governmental EntitiesThat Offer Domestic Partner Benefits

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Texas Public Policy and Law

Marriage between persons of the same sex or a civilunion is contrary to the public policy of Texas and isvoid in Texas

Neither Texas or an agency or political subdivision of Texas may give effect to a: Right or claim to any legal protection, benefit, or

responsibility asserted as a result of a marriagebetween persons of the same sex or a civil unionin Texas or in any other jurisdiction

Texas nor a political subdivision may create or recognize a legal status identical or similar to

marriage

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DARTs plan requires the partner tobe a spouse of the insured employeeto be eligible for benefits

If the partner is not a spouse asrecognized by Texas benefits are notextended

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By Broadening the Class of Employees Eligiblefor Benefits, i.e. not limiting it to spousesTravis County for Example Offers the Benefit to: Domestic Partners of the same sex or opposite sex Both must be 18 or older and not otherwise married Must currently live together and have lived together six

consecutive months Must have a relationship that includes sharedexpenses and responsibilities for the maintenance andoperation of their home

A marriage or civil union is not required

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Cost of Extending Benefits toDomestic Partners

Potential for cost impacts are in the areas of DARTs portion of the premium paid on behalf of

each employee Increased claims

According to consultants, costs differentialfor claims and premiums would be minimal.For DART it would be between $105,000 to$210,000.

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Specific Governmental Plan SummariesCity of Dallas Same Gender Reside Together

Same Residence Live in a spouse-like relationship for six months Both Must be 18 Years of Age Not related by blood, not legally married, not a

common law spouse or domestic partner of another

Documentation of relationship

Travis County Same or Opposite ender Must be at least 18

Not related by blood, not legally married, nota common law spouse or domestic partner of another, not related by marriage

Cant be in active military service Cant be employed by Travis County or any of

its elected officials or agents Living together for 6 months Shared expenses and responsibilities Both Must be 18 Years of Age

City of Austin Lives in the same household Shares the common resources of life Close, personal, intimate relationship with a city

employee Would not be prevented from marrying the

employee on account of age, consanguinity, or prior undisclosed marriage

Can be the same or opposite gender

City of Fort Worth Same or opposite gender At least 18 years of age Lived in the same household for 6 months Shares the common resources of life in a

close, personal intimate relationship, Not married, not related by blood Domestic partnership is not proof of an

informal marriage

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Types of Proof Required

Drivers Licenses Joint deed or mortgage agreement Common ownership of a motor vehicle Joint bank accounts and/or credit accounts Designation as primary life insurance

beneficiary

Health care durable power of attorney A domestic Partnership Affidavit

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DART Potential Plan Design

Relationship of indefinite duration or in existence for aminimum period Partners maintained common residence for a minimum

period of time Partners are both at least age 18

Partnership is the sole relationship of the two partners Neither partner currently married or legally separated Partners are not blood relatives Would not be prevented from marrying if opposite sexes

Partner shares common resources in a close, personal,intimate relationship with employee Financially and personally interdependent with employee Not based on marriage or similar thereto Legality

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Some ConsiderationsPros: Help recruit and retain good employees in a competitive labor

market Provides for health care coverage

Cons: Difficulty verifying relationship exists Potentially increased enrollment and claims (at least initially) Potential for increased premium contribution cost

Increased employee tax burden IRS regulations requireemployees pay taxes on difference paid by employer to insurea domestic partner

Potential to become a test case for challengers

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