United States

Office of 

Personnel Management

The Federal Government’s Human Resources Agency

Benefits Administration Letter

Number: 13-210 Date: November 12, 2013

Subject: Coverage of Children of Same-Sex Domestic Partners under FEHB and 

FEDVIP 

On October 30, 2013, the Office of Personnel Management (OPM) released final regulations to 

extend Federal Employees Health Benefits (FEHB) and Federal Employee Dental and Vision 

Insurance Program (FEDVIP) eligibility to children of same-sex domestic partners of Federal 

employees and annuitants. 

Under these new regulations, employees and annuitants in same-sex domestic partnerships who 

would marry but live in states that do not allow same-sex couples to marry may enroll the child 

of their same-sex domestic partner as a stepchild under FEHB and FEDVIP. These regulations 

will take effect on January 1, 2014. 

The purpose of this letter is 1) to provide a list of current states where same-sex couples are 

allowed to marry and thus will not be permitted to enroll the child of a same-sex domestic 

partner to whom they are not married; 2) to provide information on the tax treatment of children 

newly eligible for FEHB and FEDVIP coverage as a result of this regulatory change; and 3) to 

inform you that step-by-step guidance on how to cover these children under FEHB and FEDVIP 

will be forthcoming. 

Agencies will need to follow the guidance that will be available soon for all employees and 

annuitants wishing to cover these newly eligible stepchildren. These enrollment changes do not 

need to be made during the upcoming Federal Benefits Open Season to be effective for plan year 

2014. Employees may enroll or change enrollment as a qualifying life event (QLE) or cover 

children under an existing FEHB self and family enrollment at any time proper documentation is 

submitted. 

Employees may change enrollment or cover children under an existing FEDVIP enrollment as a 

qualifying life event (QLE). Employees not currently enrolled in FEDVIP and who wish to elect 

FEDVIP coverage for the child of their same-sex domestic partner for the 2014 plan year will 

need to enroll during this upcoming Open Season. We will allow belated FEDVIP Open Season 

enrollments for 3 months after the Open Season ends for those individuals who wish to enroll 

and cover children of same-sex domestic partners but are unable to do so during Open Season. 
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Tax Treatment and Imputed Income

If the newly eligible stepchild is considered a tax dependent under the Internal Revenue Code

(IRC) there will be no tax consequences for the employee/annuitant. However, if the newly 

eligible stepchild is not considered a tax dependent of the employee/annuitant under the

IRC, income will be imputed for the fair market value of the coverage provided to the 

newly eligible stepchild, as required by law. The imputed income for the newly eligible 

stepchild’s coverage will be included in the employee/annuitant’s pay/annuity and he or she will 

be taxed as appropriate on that amount. In other words, for employees, the estimated fair market 

value of the government’s financial contribution towards the non-dependent child's coverage

must be reported as taxable wages earned. In addition, for those employees paying their portion 

of the premium pre-tax (receiving “premium conversion”), the allotment that is attributable to a 

stepchild not considered a tax dependent will be considered imputed income. 

Note that there are no tax consequences for annuitants who cover a newly eligible stepchild 

under FEDVIP, because there is no Government contribution toward premium and annuitants are 

not permitted to enroll in premium conversion and therefore the annuitant's contribution toward 

premium is paid with after-tax dollars.

Additional information regarding how employees will be able to inform their home agencies 

about whether the newly eligible stepchild is a tax dependent will be part of future guidance.

OPM has calculated the fair market value for coverage of children under plans in the FEHB 

Program and FEDVIP for those receiving and not receiving premium conversion which will be 

imputed as income for each child covered for plan year 2014. (See Attachment 1). This amount 

will change annually and be published on OPM’s website.

Eligibility Shall Depend on Availability of Marriage in State of Residence

Under the final regulation, employees and annuitants must certify that they are in a domestic 

partnership (under the criteria in the regulation) and would marry but for the failure of their state 

of residence to permit same-sex marriage. OPM is providing a list of states where same-sex 

marriage is allowed. An employee or annuitant wishing to cover the child of his or her same-sex 

domestic partner as a result of this regulatory change may only do so if he or she does not live in 

one of the states that authorize same-sex marriage. Enrollees living in states that authorize samesex marriage who wish to cover the child of their same-sex domestic partner on their FEHB or 

FEDVIP enrollment must be legally married to their same-sex domestic partner (i.e., the child’s 

other parent).

The list of states that authorize same-sex marriage has been included as Attachment 2 to this 

document. It will also be posted on OPM’s website and will be updated as needed to reflect 

developments in state law.

Additional guidance on how to cover children of same-sex domestic partners will be published in 

the next few weeks. 
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If you have any questions regarding this Benefits Administration Letter, please contact 

Marguerite Martel at 202.606.0004 or Marguerite.Martel@opm.gov. 

 

 

 

Sincerely,

John O’Brien 

Director for Healthcare and Insurance