Civil unions creates challenges for Connecticut business

By SUSAN HAIGH
Associated Press Writer

HARTFORD, Conn. (AP) -- Not only will life change for same-sex couples in Connecticut when civil unions become law Saturday, it will change for their employers.

Businesses across Connecticut must answer questions about extending benefits including health insurance coverage, supplemental life insurance, family and medical leave, and pension benefits, to partners of gay employees.

With the new law just days away, some private-sector employers are still confused about what they must do, especially when state and federal laws conflict.

"I think employers are going to start getting requests (for benefits) as soon as Monday. And they're not prepared," said Bruce Barth, an employee benefits attorney at Robinson and Cole in Hartford who has held seminars on the subject for the Connecticut Business and Industry Association.

The new law gives the same legal rights enjoyed by married couples in Connecticut to same-sex couples, but also defines marriage as between a man and a woman.

That means same-sex couples have the right to such things as hospital visitations, state public assistance benefits, and marital privileges in court proceedings.

The state Department of Insurance has issued an opinion saying it believes all health insurance plans, with the exception of self-insured policies, also must treat civil union partners as they would spouses.

But, Rep. Michael Lawlor, D-East Haven, a key sponsor of the legislation, said the new civil unions law does not specifically require private employers to provide health insurance benefits to same-sex partners.

Bonnie Stewart, vice president and counsel for the Connecticut Business and Industry Association, said she believes civil unions won't be as confusing as some fear. Employers should just follow the rule that, "if you offer it to married couples, yes, now you have to offer it to a civil union couple," she said.

The state of Connecticut plans to recognize the civil union partnership as if it were a "traditional" marriage, according to the State Comptroller's office. Instead of obtaining benefits through the current same-sex domestic partner rules, a state employee will be able to simply check off the "spouse" option on the benefits form.

Lawlor said the federal Employee Retirement Income Security Act or ERISA does not affect municipal insurance plans, so he expects those workers will also receive coverage.

Federal employees or those who depend on the federal government for health benefits or retirement benefits will not be affected by Connecticut's civil unions law, Barth said. Since the federal DOMA, the Defense of Marriage Act, defines marriage as between one man and one woman, the civil union partners will not be recognized.

Many of Connecticut's largest employers are self-insured, but will likely take it upon themselves to extend coverage to same-sex partners, Stewart said.

"Many of them have been the leaders in having domestic partner benefits for quite some time," she said.

Yale-New Haven Hospital already offers same-gender domestic partner benefits to its nearly 8,000 employees. Michael Dimenstein, director of compensation and benefits for the Yale-New Haven Health System, said under that program an employee has to show proof of a cohabiting relationship for the past six months.

But as of Monday, they'll just have to show a state civil union certificate - nearly identical to a marriage certificate.

"It's not going to be that different for us when the civil union act goes into effect," he said. "The civil union will make it a lot easier for us."

Health insurance for all civil partners will be taxed by the federal government as income because the couple is not considered "married" under federal law, Barth said

That means a civil union partner's taxable income for state purposes will be different from the taxable income reported on their W-2 form.

"There is certainly a level of complexity that benefit administrators are going to have to deal with," said Dimenstein.

In order to get a civil union license, both parties have to go to either the town hall where they live or where they plan to hold a ceremony and get a license. Some town halls plan to be open on Saturday.

After they obtain a license, couples have 65 days to enter into a civil union. They can use the same people already authorized to legally marry heterosexual couples, such as judges, justices of the peace and licensed clergy.

But once couples get hitched, experts suggest they check with their employers to see which benefits they can receive.