Surviving Spouse and Dependent Eligibility for AEP Benefits
Survivors of active employees (not retiree-benefit-eligible): Surviving spouses of active employees who were not retiree-benefit-eligible on the date of death can elect to continue Medical, Dental and/or Vision coverage until the earlier of age 65 or remarriage, if the surviving spouse was enrolled in those Plans at the time of the employee’s death. Surviving dependent children of an active employee who was not retiree-benefit-eligible on the date of death can elect to continue Medical, Dental and/or Vision coverage until they reach the limiting age (see the “Eligible Dependents” section of this guide), if the surviving dependent child was enrolled in those Plans at the time of the employee’s death.
Survivors of active employees (retiree-benefit-eligible): Surviving spouses of active employees who were retiree benefit-eligible on the date of death can elect to continue Medical, Dental and/or Vision coverage until remarriage, if the surviving spouse was enrolled in those Plans at the time of the employee’s death. Surviving dependent children of an active employee who was retiree-benefit-eligible on the date of death can elect to continue Medical, Dental and/or Vision coverages until they reach the limiting age (see the “Eligible Dependents” section of this guide), if the surviving dependent child was enrolled in those Plans at the time of the employee’s death.
Survivors of retirees: Surviving spouses of retirees can elect Medical, Dental and/or Vision coverage until remarriage, if the surviving spouse was enrolled in the Medical, Dental and/or Vision Plans at the time of the retiree’s death. Surviving dependent children of retirees can elect Medical, Dental and/or Vision coverage until the limiting age (see the “Eligible dependents” section of this guide) if the surviving dependent child was enrolled in those coverages at the time of the retiree’s death.
Dependent Eligibility
It is important that you review the AEP dependent eligibility definitions to ensure that all of your covered dependents or any dependents you want to add during Annual Enrollment meet the eligibility requirements. If any one of your currently covered dependents no longer meets the eligibility requirements listed, you should contact the AEP Benefits Center as soon as possible to report this information.
Covering ineligible dependents under your AEP Medical, Dental or Vision Plans is considered a violation of AEP’s rules of conduct and could subject you to disciplinary action, up to and including termination of benefits.
Note: Your eligible dependents do not include any individual who is also covered as an AEP employee or retiree or who is covered by another AEP employee or retiree as a dependent. *
*Surviving dependents may be covered only if they also are described above.
Eligible Dependents Include the Participant’s:
Spouse: As defined by applicable state law where you live, including common-law marriages.
Domestic Partner: To qualify for coverage as a domestic partner, you and your domestic partner must have certified and declared that you meet the criteria below. You and your domestic partner:
- Must share the same permanent residence.
- Must be each other’s sole domestic partner and intend to remain so indefinitely.
- Must have resided in the same household for at least 12 months.
- Must both be at least eighteen (18) years old or older and mentally competent to consent to a contract.
- Must not be currently married to or legally separated from anyone else nor had another domestic partner within 12 months prior to designating each other as domestic partners.
- Must not be in the relationship solely for the purpose of obtaining benefits coverage.
- Must be financially interdependent as documented by three (3) of the following: > Joint ownership or lease of real property; > Joint ownership of a motor vehicle; > Joint back account or credit account; > Designation as the primary beneficiary for life insurance, retirement benefit or will; > Assigned durable property power of attorney or healthcare power of attorney; > Driver’s license listing a common address.
- You are not blood relatives any closer than would prohibit legal marriage in the state in which the participant legally resides.
- Must have an approved Affidavit of Domestic Partnership on file with the AEP Benefits Center.
You may cover your domestic partner whether or not he or she qualifies as your tax dependent. If your domestic partner is not your tax dependent, you will incur imputed income on that benefit coverage.
End of Marriage or Domestic Partnership: Upon the termination of your marriage or domestic partnership, it is your responsibility to inform the AEP Benefits Center regarding the change in eligibility for your former spouse/domestic partner. Failure to do so within 60 days after the date the marriage/domestic partnership ends will not prevent their loss of coverage retroactively BUT WILL result in their loss of eligibility to elect COBRA continuation coverage and no premiums will be refunded.
Children: To qualify for coverage beyond age 26, your disabled child(ren) must meet at least one of the criteria listed under the “Children” section above, plus:
- Your natural child or the natural child of your spouse or eligible domestic partner;
- A child legally adopted by you, your spouse or eligible domestic partner or placed with you, your spouse or eligible domestic partner for adoption. “Placement for adoption” means the assumption and retention by the employee of the legal obligation for the total or partial support of a child to be adopted. Placement ends whenever the legal support obligation ends;
- Your foster child;
- A child who resides in your household for whom you, your spouse or your eligible domestic partner are the court-appointed guardian;
- A child for whom you are required to provide coverage as a result of a Qualified Medical Child Support Order (QMCSO); or
- Any other child you claim as a dependent on your federal income tax return, provided that neither natural parent of the child lives with the child and you are acting as the child’s guardian.
Disabled dependents: To qualify for coverage beyond the child-limiting age, disabled child(ren) must meet one of the criteria listed under the “Children” section above plus:
- Disability must have occurred prior to age 26.
- The child must remain continuously covered under any of the options available under the Plan.
You must submit proof that the child reaching age 26 is disabled and incapable of self-support within 31 days after he or she reaches age 26. If you are enrolling the child for the first time after the child has already reached age 26, you must submit proof that the child has been disabled and incapable of self-support since age 26 within 31 days after enrolling the child. The Plan Administrator (or its designee) has the right to require, at reasonable intervals, proof that the child continues to be disabled and incapable of self-support. If you fail to submit any required proof or if you refuse to permit a medical examination of the child, he or she will not be considered disabled and therefore will not be eligible for coverage.
Tax Considerations When Covering Your Dependents
Certain AEP benefits qualify for tax advantages (such as nontaxable employer contributions) only to the extent that they cover the participant’s dependents as defined for tax purposes. AEP allows you to provide Medical coverage for certain dependents who may not qualify as your tax dependents. As a result, the contributions you make for their coverage may not qualify for tax-favored treatment, and you will be subject to imputed income on the value of the company-paid portion of their coverage and be taxed accordingly.
To learn more about whether your domestic partner, your domestic partner’s child or your own disabled children over the age of 26 might be tax qualified dependents, please review the “Does My Domestic Partner or Child Qualify for Tax Status”. This document can be found on aepbenefits.com in the Reference Center or by contacting the AEP Benefits Center.
If Both You and Your Eligible Dependents Have AEP Benefits
If both you and your spouse or domestic partner or eligible dependents are eligible for an AEP Benefit Plan as an AEP retiree or employee:
- You may each enroll as a retiree or employee, as appropriate, or one of you may enroll as a retiree or employee and the other as a spouse, domestic partner, or eligible child.
- Neither of you may be covered both as a retiree or an employee or retiree and as a dependent.
- Neither you nor your spouse or domestic partner can cover the same eligible dependent children.
Dependent Social Security numbers, or tax identification numbers for non-US citizens, must be provided to AEP within six months of adding a dependent. You must enroll your dependent within 31 days of a qualifying event (or within 90 days of birth or adoption of a newborn), even if a Social Security number has not yet been obtained.