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[May 24, 2002]

Same-sex domestic partners of UC employees are currently eligible to receive UC-sponsored medical, dental and vision benefits. Unfortunately, the high estimated cost of providing health and welfare benefits to opposite-sex domestic partners prevents the University from making such a change at this time.

While retirement benefits, including those that the Regents recently extended to eligible same-sex and opposite-sex domestic partners, are funded by UCRP, additional health and welfare cost would have to be paid from current operating funds. This increased cost would create an immediate cash flow problem for UC locations, particularly at a time when the University faces a limited state budget and rapidly rising heath care costs.

The University cannot precisely predict the number of individuals who would be eligible to receive opposite-sex domestic partner benefits. However, based on the experience of other institutions and information from industry publications, the annual cost of providing UC-sponsored medical, dental and vision benefits to opposite-sex domestic partners and their eligible children is estimated to range from $16.7 million to $39.2 million.

The University remains committed to offering employees the most comprehensive array of benefits that budgetary circumstances allow, and UC will continue to explore the possibility of adding these benefits at a future date.