The verification process works both ways: a pension plan is exempt from ERISA`s spousal protection only if the plan confirms that a member is not married, and a plan may be subject to a spouse who has not received ERISA-protected benefits. For example, if a member of a defined benefit plan waives the joint and surviving pension without the consent of his or her spouse, the plan could be held liable to the common-law partner for the value of that retirement benefit. Employers may wish to consider ensuring that their benefit choices and spousal consent forms indicate that the marriage includes both civil and common-law marriage. Last July, South Carolina became the last state to ban de facto marriages when the state Supreme Court abolished the institution, finding that its “foundations have eroded over time and that the results it produces are unpredictable and often convoluted” (Stone v. Thompson, 833 P.E.2d 266 (2019)). However, eight states and the District of Columbia continue to allow couples to form common law marriages — that is, valid marriages created by the couple`s mutual agreement and public behavior without an official license or celebration. The misunderstandings and complications associated with common-law marriage often leave employers confused about the benefits of common-law partners. In order to properly manage employee pension plans, employers need to be aware of the rights and obligations of spouses under the common law. Example. Judy lives in Colorado, a state that allows common-law marriages. She contacts her employer during the plan year and asks to include her new spouse Bob in the group health care plan. The employer authorizes Bob`s special registration and begins with input tax deductions at the “employee plus one” premium rate.
2A: The spouse or common-law partner and his/her dependants are not entitled to cover until the applications have been completed. The University of Northern Iowa offers insurance coverage for spouses and life partners. On the other hand, state laws that impair the ability of a multi-state employer to have a uniform regime administration at the national level are provided. For example, the Supreme Court has found that federal law prejudges state beneficiary designation laws that interfere with ERISA`s life insurance policies and pension plans (Egelhoff v. Egelhoff, 532 U.S. 141 (2001)). Employers considering exclusion should discuss the risks with a lawyer. A common-law marriage is sometimes confused with a domestic partnership or a civil partnership. However, institutions have very different legal meanings. De facto marriage is a legal marriage for all state and federal purposes; Domestic partnerships and cohabitation are not. Some states grant significant rights and benefits to the spouse to registered domestic partners and life partners. However, outside of these states, couples in domestic or civil partnerships do not have the rights that spouses (including common-law partners) enjoy under federal law and the laws of all other states.
Although the act of living together as a married couple in some states may constitute a marriage under ordinary law, living separately from each other once married does not lead to divorce. As with any legal marriage, the dissolution of a de facto marriage requires a divorce decree. Parties to a common-law marriage cannot remarry (even to another spouse) until the divorce is final. After the divorce, the former spouse has certain COBRA rights to continue to insure themselves for health insurance under ERISA plans and non-federal health plans that are subject to the Public Health Services Act. Thirteen states no longer allow the creation of common law marriages, but each state still recognizes common law marriages established within its borders before a certain date, as shown in the following table. Moreover, even States that have abolished de facto marriage within their borders must recognize those that are legally established in another State. A common-law partner can be insured on the following employee plans: Retirement Savings. In the case of pension plans, it is more likely that a common-law partner will be required when a member retires or dies and a common-law partner applies for benefits.