MSU Human Resources >> Benefits >> Other Eligible Individual (OEI)

Other Eligible Individual (OEI)

Same-Sex Spouse - IRS Ruling

Under the Other Eligible Individual (OEI) program a benefits eligible MSU employee or retiree who does not have a spouse eligible to enroll for health, dental, supplemental life insurance, and/or accidental death & dismemberment coverage may enroll one (1) OEI, but only if ALL of the following eligibility criteria are met:

• The OEI currently resides in the same residence as the employee and has done so for the last 18 continuous months, other than as a tenant;

• The OEI is not a “dependent” of the employee as defined by the IRS; and

• The OEI is not eligible to inherit from the employee under the laws of intestate succession in the State of Michigan.

Children of an employee’s OEI may be eligible on your health, dental, supplemental life insurance, and/or accidental death & dismemberment coverage. Once your dependent turns age 19, you can view detailed eligibility information on the following link Dependent Turns Age 19 - 25.

Eligibility to continue coverage for an OEI ceases on the date the above criteria is no longer met. Employees and retirees must immediately notify MSU Human Resources Benefits of a change in eligibility status and complete an “Affidavit of Termination of Other Eligible Individual Partnership form”.

The following individuals do not fall within the eligibility criteria for this program:

• Spouse
• Children and their descendents (i.e., children, grandchildren)
• Parents
• Parents’ descendents (i.e., siblings, nieces, nephews)
• Grandparents and their descendents (i.e., aunts, uncles, cousins)
• Renters, boarders, tenants, etc

As a retiree, you may add your eligible OEI to your health/dental benefit plan and receive the University’s contribution, if your OEI was officially registered on or before January 1, 2009, and you were retired or had met the minimum retirement eligibility criteria on or before that date. In the event of your death, your OEI may continue coverage with the MSU contribution; however, they may not add a new partner to the plan. If your OEI was not registered on or before January 1, 2009, or you were not retired/eligible to retire on that date, your OEI is eligible to enroll and purchase a heath/dental plan consistent with the plan you are enrolled in.

Tax Implications of covering an OEI under your benefits:

IRS regulations require the University to tax the fair market value of University-provided health and dental benefits for Other Eligible Individuals. The IRS defines fair market value of a fringe benefit as the amount that an individual would have to pay for the particular fringe benefit in an arm’s length transaction. This means what you would have to pay for an individual policy for your other eligible individual in the open market.

Enrollment for OEI

Employee/Retiree: Complete the online process to add the dependent and complete the paper version of the “Other Eligible Individual form” (see below).

Please return the OEI form to:

MSU Human Resources/Benefits Department
Nisbet Building, Suite 140
1407 S. Harrison Road
East Lansing, MI 48823-5287 
             Or
Fax to 517-353-1869

Termination of Other Eligible Individual partnership:

Employee/Retiree: To remove an OEI dependent from the coverage, employees and retirees must immediately notify MSU Human Resources Benefits of a change in eligibility status and complete the paper version of the “Affidavit of Termination of Other Eligible Individual Partnership form”. (see below) Please return the “Affidavit of Termination of Other Eligible Individual Partnership form” to the MSU Human Resources Benefits Department at the above address.

MSU Human Resources Benefits: Sends the non-MSU employee/retiree Other Eligible Individual (and eligible dependents) continuation of coverage information. If continuation of coverage is elected, MSU sends monthly billing information for payment of premiums to the non-MSU employee/retiree.

If you have questions about OEI benefits, please contact MSU Human Resources Benefits at benefitsinfo@hr.msu, 517-353-4434 or 800-353-4434.

For more information on OEI, please click on the links below:

Same-Sex Spouse - IRS Ruling
Other Eligible Individual Form

Affidavit of Termination of Other Eligible Individual Partnership Form
Taxation Info – Faculty  2013  2014
Taxation Info – AY Faculty  2013  2014
Taxation Info – Support Staff  2013  2014
Taxation Info – Retirees  2013  2014
Other Eligible Individual Frequently Asked Questions
Policy & Procedure for Surviving Spouse/Other Eligible Individual - Health and Dental Benefits

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