PeopleSoft HCM 9.2.

005

Benefits Eligibility for US Same-Sex

Spouse

January 2014
PeopleSoft HCM 9.2.005 Product Documentation Update: Benefits Eligibility for US Same-Sex Spouse
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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Contents
Benefits Eligibility for US Same-Sex Spouse ................................................................................................... 4
Understanding Benefits Eligibility for US Same-Sex Spouse....................................................................... 4
Delivered Benefits Setup for US Same-Sex Spouse ................................................................................... 4
Translate Values ....................................................................................................................................... 5
Health Coverage Codes............................................................................................................................ 7
Effective Date for US Same-Sex Spouse ................................................................................................. 8
Delivered Setup for HIPAA ....................................................................................................................... 8
Setting Up US Same-Sex Spouse for Benefits Eligibility and Enrollment ..................................................10
Setting Up Health Plans .......................................................................................................................... 10
Setting Up Spousal Life Insurance Plans ............................................................................................... 12
Validating Personal Data ............................................................................................................................ 14
Dependent Beneficiary Type .................................................................................................................. 14
Spousal Waiver ....................................................................................................................................... 15
Enrolling in Benefits .................................................................................................................................... 15

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Benefits Eligibility for US Same-Sex Spouse

This document describes the enhancements to HCM Benefits with regard to benefits eligibility for US same-
sex spouse.
Note: Benefits eligibility enhancements for US same-sex spouse are made available in PeopleSoft HCM
releases 9.0, 9.1 and 9.2.

Understanding Benefits Eligibility for US Same-Sex

Spouse
HCM Benefits has been enhanced to account for the new dependent relationship US same-sex spouse, and
validate benefits eligibility options based on this new relationship. The following functionality has been added:
• A new dependent relationship US same-sex spouse.
• A new covered person type US same-sex spouse.
• A new set of health coverage codes for US same-sex spouse.
• The ability for a user to add the new same-sex spouse relationship to his/her personal data.

Delivered Benefits Setup for US Same-Sex Spouse

This section describes the benefits setup for US same-sex spouse delivered with the system. The Benefits
product provides new coverage codes, for example, for same sex marriage, which can be linked to a separate
set of Benefits Tax Adjustment Rates used to calculate the taxation differences between states and locals vs.
Federal. These tax adjustment rates required for same-sex spouse are defined in the Tax Adjustment field, in
the Tax Adjustment tab of the Benefits Rate Table.
Note: The Benefits Rate Table will be further enhanced to hold other rates to break down the tax adjustment
rates. Refer to the Benefit Rates and Taxation for Same-Sex Marriage document for further discussion on
other rates tax adjustments. This document will be available to customers with PeopleSoft HCM 9.2 Update
Image 6.
The new coverage codes for same sex marriage allow the Covered Person Type of US Same Sex Spouse.
The new Covered Person Type is associated to a new Relationship with the same name US Same Sex
Spouse. A dependent or beneficiary is defined in HR personal data by means of a Relationship. Hence all the
same-sex spouse setup eventually gets associated with the set of adjustment rates used to calculate
necessary state and local tax adjustments.
Depending on the benefits plan type, the following new setup is recommended to implement the US same-
sex spouse enhancement:
• For health plans, new coverage codes are set up for the US same-sex spouse relationship,
distinguished by the covered person type US same-sex spouse. Coverage codes 22 and 24 are
delivered with the system.
• For life plans, customers are required to set up new benefit plans for same-sex spouse and associate
different sets of benefit rate IDs.

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Translate Values
Translate values for Covered Person Type and Dependent Relationship are delivered with the system.

Covered Person Type

A new translate value SS is delivered with the system, for the Covered Person Type of US same-sex spouse.

Translate Value – Covered Person Type

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Dependent Relationship
A new translate value SS is delivered with the system, for the US same-sex spouse relationship.

Translate Value – Dependent Relationship

The dependent relationship uses Covered Person Type = US Same-Sex Spouse and Gender Validation =
Same Sex Only. This setup is delivered with the system.

Dependent Relationships Table – US Same-Sex Spouse

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Health Coverage Codes

New coverage codes 22 and 24 are added for two new options - employee + same-sex spouse, and family
(with same-sex spouse). These two codes are delivered with the system.

Health Coverage Codes – Coverage Code 22

Health Coverage Codes – Coverage Code 24

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Effective Date for US Same-Sex Spouse

For all setup related to the US same-sex spouse feature, an effective date of September 16, 2013 is used.
In Tax Update 13-E, Payroll for North America delivered updates to the Taxable Gross Definition table that
includes a new Taxable Gross Component ID SSS. The new Taxable Gross Component ID is used in
identifying dollar amounts representing benefits provided to an employee’s same-sex spouse, which are
excluded from U.S. federal taxable wages, but which continue to be included in the definition of taxable
wages for state and local tax jurisdictions that do not recognize same-sex marriage. The Taxable Gross
Definition table entries delivered in Tax Update 13-E have an effective date of 09/16/2013. The Benefits
product uses the same date in the setup to match with Payroll for North America.

Delivered Setup for HIPAA

New mapping values are added to the EDI 834 Transaction Map Table. Mapping values 22 and 24 are added
to the Coverage Code field. US Same Sex Spouse is added to the Relationship field.

EDI 834 Transaction Map Table – Coverage Code 22

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

EDI 834 Transaction Map Table – Coverage Code 24

EDI 834 Transaction Map Table – US Same-Sex Spouse Relationship

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Setting Up US Same-Sex Spouse for Benefits Eligibility

and Enrollment
This section describes the setup required for the US same-sex spouse feature.

Setting Up Health Plans

For Health Plans, define tax adjustment rates for coverage codes 22 and 24. Other coverage codes do not
require tax adjustment rates.

Benefit Rates Table – Tax Adjustment Rates

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Note: The Benefit Rates Table will be enhanced further. Refer to the Benefit Rates and Taxation for Same-
Sex Marriage document for further information on other rates tax adjustments. This document will be
available to customers with PeopleSoft HCM 9.2 Update Image 6.
On the Benefits Program Table for Health Plans, add options for coverage codes 22 and 24.
Note: Since coverage codes associated with same sex and heterosexual marriage can be identified, the
same Benefit Rates Table can be used for both, but with a different set of tax adjustment rate entries
accordingly.

Benefits Program Table – Options for Coverage Codes 22 and 24

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Setting Up Spousal Life Insurance Plans

Life Insurance 2X plans do not use health coverage codes. Set up separate benefit plans for same-sex
spouse in order to use different benefit rates for spouse and same-sex spouse.
Note: The following screenshots provide sample setup for spousal life insurance plans.

Spousal Life Insurance Plans

Additionally, create a new benefit rate ID on the Benefit Rates Table with tax adjustment amounts for same-
sex spouse.

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Benefit Rates Table - Tax Adjustment Rates for Same-Sex Spouse

Add option entries for same-sex spouse using a separate benefit plan and different benefit rate ID.

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

Option Entries for Same-Sex Spouse

Validating Personal Data

Dependent Beneficiary Type
When updating Dependent/Beneficiary data, the user can now select US Same Sex Spouse in the
Relationship to Employee field. The Dependent Beneficiary Type filed is automatically set to Both.

Dependent/Beneficiary Data

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Product Documentation Update Benefits Eligibility for US Same-Sex Spouse
January 2014

When processing a Divorce Life Event using eBenefits, the US Same-Sex Spouse relationship is
automatically updated to Ex-Spouse.
Note: The automatic update of relationship to Ex-Spouse when processing a Divorce life event using
eBenefits is only applicable to release 9.2.

Spousal Waiver
The ability to check for spousal waiver is available for US same-sex spouses similar to spouses, ex-spouses,
and children of employees. Same-sex spouses may have court orders that provide them with a legal right to
benefit coverage from those employees. In addition, certain benefit plans may require that a spouse has a
required minimum coverage amount.

Enrolling in Benefits
As a new relationship and new coverage codes are added for US same-sex spouse, the system is enhanced
to validate the eligible dependent(s) in base benefits, benefits administration, and eBenefits accordingly.
Additionally, the COBRA process applies the same rules applicable to a heterosexual spouse to the US
same-sex spouse.

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