The U.S. Supreme Court Ruling on the Defense of Marriage Act (DOMA) and its Effect on Pre-taxed Benefit Programs

Guidance from the federal agencies is not yet available as to how to treat civil unions under federal law. As such, until a determination is made, the existing eligibility and taxability requirements for civil unions / domestic partnerships under the pre-taxed benefit programs (e.g., Premium Conversion Plan and Island Flex) will continue to be applied.

It is our understanding that the Internal Revenue Service, in collaboration with the other federal agencies, is working on regulations to address the U.S. Supreme Court decision. We will keep you posted as more information becomes available.