Tax Withholding
When you add or lose a family member, you may want to change your tax withholding. You can make the change by submitting a Tax Withholding Election for UCRP Income form (UBEN 106) [PDF].

Imputed Income
Under Internal Revenue rules, the value of employer-paid medical coverage for anyone who is not your tax dependent is considered imputed income and is subject to FICA (Social Security and Medicare), federal income taxes, and any other required payroll tax. This includes all family members (except legal spouses) who are not claimed by you as a tax dependent (e.g. children for whom you share tax dependency with a former spouse, domestic partner, etc.)

Domestic partners registered with the State of California and same-sex spouses married in California between June 16, 2008 and November 4, 2008 or married in another jurisdiction where the marriage is valid will not have imputed income for California income tax purposes. Any out-of-pocket premium cost for medical coverage of your partner (and/or your partner's child/grandchild) will be deducted from your retirement benefit on a pretax basis for California income tax purposes. For federal tax purposes, you will have imputed income and the out-of-pocket premium cost must be paid on an after-tax basis.

If you claim your partner and/or your partner's child or grandchild as your tax dependent, you should not have imputed income.

Quick Links

• Group Insurance Eligibility Factsheet for Retirees [PDF]
• Benefits for Domestic Partners [PDF]
• Medicare Factsheet [PDF]