Laura Michaels, 33, has been a secretary
at the Campbell Soup Company in Camden, New
Jersey, and her husband, Jim, decided to adopt
a child. Because Laura's sister has Down syndrome,
she and her husband wanted to provide a home
for a child with "special needs."
Soon after completing their adoption study,
they were introduced to Gary, a 10-year-old
boy with cerebral palsy and learning disabilities.
Gary had been waiting for 3 years, since his
parents relinquished him, for someone to give
him a permanent home.
Laura and Jim wanted to adopt Gary, but knew
that both of them would have to take time
off from their jobs to help Gary adjust.
Fortunately, Laura's employer offered adoption
benefits. Not only would her company reimburse
her for up to $2,000 of any adoption-related
expenses, it would give her a combination
of paid and unpaid leave.
Campbell Soup is one of a growing number
of companies in this country that offers some
kind of adoption benefit to its employees.
In some cases, it is a financial stipend to
cover some or all adoption costs. In others,
it is a policy that allows for adoption leave
(similar to maternity or paternity leave)
so that the child and parents can have time
to adjust to each other.
Today, 2 million childbearing-age couples
and 1 million single persons are interested
in adopting children. Adoption, once the province
of infertile couples seeking healthy infants,
has changed. Adopters include many single,
first-time parents and couples who choose
to add to their families through adoption.
Many of the children being adopted are older,
have disabilities, or are brothers and sisters
who want homes together. The children come
from the United States as well as from a variety
of foreign countries.
As adoption has gained in acceptance as a
way to begin or expand a family, employees
and employers have become more interested
in adoption benefits. Indeed, many prospective
parents, especially those who are single,
could not adopt without the support of their
employers.
Laura says that she and her husband could
probably not have considered adoption, especially
of a child like Gary who needs special attention,
if not for the financial and emotional support
of her employer.
"The money is wonderful," says Laura, "but
equally as important was knowing that my company
was behind me, that I could take a reasonable
amount of time off from my job and that it
would be waiting for me when I was ready to
return in two months."
While maternity benefits are standard in
most health care programs, adoption benefits
have a long way to go. Yet, they are just
as much needed.
In addition to needing financial help, Laura
suggests that adopters need to know that their
employer is committed to family life and is
willing to allow the time necessary for a
child and parents to establish and build a
relationship.
In 1990, a survey conducted by Hewitt
Associates reported that 98 of 837 major
U. S. employers (12 percent) provide employees
with some type of adoption assistance. The
numbers may not seem large; they show, nevertheless,
a significant increase over previous years
and a growing recognition of the higher priority
the workplace gives to family concerns.
Women in the workplace particularly welcome
corporate support for their decision to adopt.
Traditionally, women have suffered both emotionally
and financially after the birth or adoption
of a child. A recent study by the Institute
for Women's Policy Research reveals that
working women who bear or adopt children lose
earnings of $31 billion annually. Those who
have no leave time benefits available incurred
an additional $607 million loss in earnings.
[back to top]
Adoption Benefits Plans
An adoption benefits plan is a company-sponsored
program that financially assists or reimburses
employees for expenses related to the adoption
of a child and/or provides for paid or unpaid
leave for the adoptive parent employee. Financial
assistance may be reimbursement for specific
costs or a set amount of money, regardless
of actual expenses. Adoption leave may be
paid or unpaid and provides the time following
the adoption for the parent to help the child
bond and feel comfortable. Some companies
offer a combination of financial help and
leave time.
Often, companies offer adoption-related benefits,
but they are not part of a separate adoption
benefits plan. They may be offered under general
employment leave or maternity/paternity benefits.
As part of their adoption benefits package,
a growing number of companies are contracting
with human resources consulting firms to provide
their employees with adoption information,
support, and referrals to licensed adoption
agencies and organizations. An adoption specialist
is available by telephone to answer questions
about the adoption process, types of adoption,
locating and selecting an agency, and managing
special situations, such as step parent or
legal risk adoptions. The Partnership Group
in Lansdale, Pennsylvania, Work/Family Directions,
Inc., in Boston, Massachusetts, Working Solutions,
Inc. in Portland, Oregon, and the Dependent
Care Connection in Westport, Connecticut,
are some of the human resource organizations
that provide this assistance. Among the major
corporations that offer this benefit are Aetna,
AT&T, DuPont, Hewlett-Packard, IBM, Johnson
and Johnson, and Microsoft.
[back to top]
Why Would a Company Offer
Benefits?
Equity: Two of the most compelling
reasons for a company to offer benefits are
equity and fairness. Employees who choose
parenthood through adoption should receive
benefits comparable to those who have children
biologically. "We've always paid excellent
maternity benefits, and we felt that adopting
parents also have certain needs that we want
to meet," says Lia Brassord, manager of employee
insurance at Stanley Works of New Britain,
Connecticut.
Low cost: Since few workers actually
utilize the benefits, the cost to the company
is low, assuring compatibility with cost containment
concerns. An informal survey of companies
shows that fewer than 2 percent of all employees
use the adoption benefit. "We have found this
benefit to be very well received by employees,
and very cost-effective. We currently experience
from two to six adoptions per year. I would
endorse the adoption allowance to any employer
contemplating it," states Michael McDermott,
Senior Director of Human Resources, G.D. Searle
& Co., Skokie, Illinois.
Good will: The company receives a
lot of good will and positive publicity for
its sensitivity to its employees. In addition,
workers tend to feel greater loyalty when
given this extra consideration. This may lead
to a lower company turnover rate. "Benefits
come from the needs of people. With something
like adoption assistance, employees appreciate
its existence and employers benefit from the
good will it creates," says Christine Seltz,
Consultant, Hewitt Associates, Lincolnshire,
Illinois.
Social benefit: Children and families
are the beneficiaries of the company's support
of adoption. The benefits may make the difference
in a decision to adopt, which can be particularly
meaningful for the growing number of available
children with special needs who live in foster
care or institutions. "Everyone benefits from
an adoption benefit plan: the community, the
company, and the employees," claims B. Miller,
Vice President, Human Resources and Compensation,
with a Chicago-based communications firm.
Acceptance by companies: More and
more companies are offering benefits packages
and many want to keep pace with their colleagues.
In addition, legal actions have consistently
supported the equity consideration.
An executive at the Xerox Corporation says
that company benefits made "a world of difference"
when she adopted two boys from Korea 5 years
ago.
"When we adopted," says Susan, "the total
cost was $5,000, and Xerox defrayed $2,000
of that. I thought it was great--a very appropriate
ratio for them to cover. It showed me that
Xerox supported family values and was serious
about helping me to have the family I wanted."
Wendy Starr, Manager of the Life Cycle Programs
and Policies at Xerox in Stamford, Connecticut,
says, "The program is very well received here.
We average about 50 people a year using it.
Some years we've even had up to 75 people
take advantage of it." In 1979 when the program
started, Xerox reimbursed $1,000 of the adoption
costs; now they will pick up $3,000 of the
bill.
An executive from Xerox's Human Resource
Department who adopted says, "As a personnel
manager I was well aware of the benefit program,
and I knew that Xerox was extremely sensitive
to adoption as an option. The fact that they
just increased their reimbursement proves
that. They also gave me a leave of absence.
I can't speak highly enough of management's
commitment. It's there whether you adopt or
have a baby biologically." She adds that,
"The company doesn't just send you a reimbursement
check, but a very nice personalized letter.
It's an excellent benefit."
[back to top]
Who Is Eligible for Benefits?
Adoption benefits are usually available to
all regular employees. In some cases, the
employee needs to have worked for the company
for a specific amount of time; in others,
enrollment in a company insurance plan is
required. The designations used by many companies
for those eligible are full-time salaried
"permanent" or "regular" employees.
[back to top]
How Do Plans Actually
Work?
What Expenses Are Covered?
Coverage varies widely, with benefit amounts
ranging up to $6,000 per adoption. The most
common approaches are:
- Reimbursement for specific expenses;
- Specific "set" allowance, regardless of
expense; or
- Reimbursement or coverage through the
company's medical plan for medical expenses
only.
Most often, employees are reimbursed for
a given percentage (80 percent appears to
be the norm) of specific itemized expenses.
Virtually all plans have a ceiling, with the
median reimbursement being about $2,000. The
most frequently covered expenses are public
and private agency fees, court costs, and
legal fees associated with the adoption. Newer
policies have broadened coverage to include
foreign adoption fees, medical costs, temporary
foster care charges, transportation costs,
pregnancy expenses for the birth mother, and
counseling fees associated with the placement
and initial adjustment.
When a specific allowance is offered, employees
receive a lump sum regardless of actual costs.
Allowances usually range from $500 to $1,000,
with more companies paying at the higher end.
If more than one child is adopted, some companies
pay only one allowance while others pay an
allowance per child.
The least common approach covers only the
medical costs of adoption through company
medical insurance plans. So far, this approach
has been used only in specific, limited situations
with tightly defined eligible medical expenses.
It may also be possible for companies to
provide coverage for adoption-related legal
expenses by including adoption in company-sponsored
group legal plans for employees.
The table below provides information about
the adoption benefits covered by the 98 employers
surveyed in 1990 by Hewitt Associates.
| Type of Adoption
Benefit |
Percentage
That Cover It |
| Legal fees |
82 |
| Medical expenses of birth mother |
63 |
| Agency or placement fees |
38 |
| Medical expenses for child |
23 |
| Travel/lodging expenses |
17 |
| Temporary foster care |
14 |
| Miscellaneous expenses |
11 |
When Are Benefits Paid?
In most cases, benefits are paid after the
adoption is finalized. Some companies, recognizing
the accumulating expenses and the need for
a child to live in the home prior to finalization,
are providing reimbursement earlier--when
the child is placed in the home or as expenses
are incurred. The reimbursement for the adoption
of children with special needs is paid after
finalization.
Are all types of adoption covered?
In cases where a stepparent wants to adopt,
only about half the companies surveyed in
a l980 study covered adoption costs. Among
plans implemented more recently, the trend
is toward including all adoptions.
Some of the companies surveyed by the U.S.
General Accounting Office in l989 (67 companies,
7 Federal Government agencies, and 3 nonprofit
organizations), had an age limit on the adopted
child that determined whether benefits would
be paid. Most of those with age limits specify
the child must be under either 16 or 18 years
of age.
How Do Adoption Benefits and Maternity
Benefits Compare?
While most companies recognize the need for
fairness to all employees, adoption benefits
have not kept pace with maternity benefits.
Since regulations require that pregnancy be
treated as any other disability, reimbursements
through medical plans have risen dramatically.
This has not been the case for adoptions,
since an adoptive parent is not "disabled"
by parenthood. Yet, there are companies that
try to parallel maternity benefits by steadily
increasing the adoption reimbursement. At
least one company--Time, Incorporated--bases
its maximum adoption benefit on the latest
3-month average of pregnancy costs in the
area.
Are Benefits Taxable?
Currently, adoption benefits in the form
of cash assistance are federally taxable.
However, there are ways for companies to provide
employees with non-taxable benefits related
to adoption. Medical and legal expenses may
be covered under company-sponsored group plans,
which are currently non-taxable.
[back to top]
Adoption Leave
How Prevalent Is It?
An informal poll of companies shows that
many provide adoption leave on an individual
basis, at the supervisor's discretion. Often,
adopting employees can use personal leave
time when the child joins the family or they
may use vacation time even though no formal
adoption leave exists.
Organized labor has a great interest in parental
leave because of the large number of women
in the work force. Unions frequently bargain
strenuously for leave benefits and are now
negotiating for contracts that provide both
birth and adoption language.
Public sector union contracts are more likely
to include longer leave provisions. Based
on a review of 85 of 4,000 American Federation
of State, County, and Municipal Employees'
contracts, 88 percent of union employees may
take more than 18 weeks of unpaid parental
leave. Eighty-four percent of these employees
are given leave for up to or more than 6 months.
Other unions have been less successful. The
International Ladies Garment Workers has fewer
than 50 contracts with a parental leave policy
that includes adoption. Carriers in the airline
industry, for the most part, do not specify
adoption benefits plans in their contracts.
With the passage of the Family
and Medical Leave Act in 1992, employers
with 50 or more employees, including the Federal
Government and the Congress, must offer both
male and female employees up to 12 weeks of
unpaid leave upon the birth or adoption of
a child. The employee is guaranteed his present
job or one considered equivalent and the employer
is required to continue health benefits during
the leave period.
Policies on maternity leave vary from State
to State. Minnesota was the first State to
require employers to offer parental leave
to both the mother and father of a newborn
or adopted child. In Minnesota, all companies
with 21 employees or more must offer up to
6 weeks of unpaid leave to both mother and
father, who can take the leave at the same
time and return to their original jobs or
ones with comparable duties and salaries.
Other States that require employers to offer
parental leave to adoptive parents include:
Connecticut, District of Columbia, Maine,
Massachusetts (female employees only), New
Jersey, Oregon, Rhode Island, Washington,
and Wisconsin. In addition to these States,
Colorado and New York, while not mandating
employers to provide parental leave, do require
them to offer leave to adoptive parents if
they offer it to biological parents. Kentucky
parental leave law specifically applies only
to adoptive parents.
Types of Adoption Leave
Most companies will allow an employee to
take unpaid leave. While companies may offer
their employees either paid and/or unpaid
leave, the leave may be listed under a heading
other than adoption. Paid leave may be defined
as: authorized time off, discretionary time,
annual or paid personal leave, annual or all-purpose
time. The length of paid leave usually depends
on the amount of leave time the employee has
accrued. In some cases, a maximum duration
of paid leave is set by the company.
Unpaid adoption leave may be considered personal
leave, child care leave, personal hardship
leave, or medical leave. Most companies offer
limits ranging from 2 weeks to 1 year, with
the median at 6 months. Some companies, however,
set no time limits, but prefer to be open
or negotiable, depending on individual circumstances.
[back to top]
Typical Company Plans
Given the differences in the size and economics
of companies, there is no single adoption
benefit plan that fits all companies. The
following are examples of typical plans that
are presently offered:
Wendy's International, headquartered
in Dublin, Ohio, covers eligible adoption
expenses up to a maximum of $4,000 per adoption
for employees who have completed 1 year of
service and participate in the company's Group
Insurance Program. For the adoption of a child
with special needs, Wendy's will reimburse
up to $6,000 per adoption. Financial assistance
will cover specific adoption-related expenses,
such as licensed adoption agency fees, legal
costs, State-required "home study," and charges
for temporary foster care before placement.
A paid leave of absence is available upon
assuming custody of the child, with the amount
of leave determined by the employee's length
of service. Unpaid leave must be approved
by the employee's supervisor and the human
resources department.
American National Can Company of Chicago,
Illinois, reimburses for 80 percent of eligible
adoption expenses up to $2,000 per adoption.
The reimbursement covers reasonable and customary
public and private agency fees, reasonable
and customary legal fees, court fees, reasonable
and customary charges for necessary medical
expenses not covered under any other available
flexible benefits option, and temporary foster
care charges when their payment is required
immediately preceding the child's placement.
The Campbell Soup Company of Camden,
New Jersey, offers salaried employees financial
reimbursement of up to $2,000 for adoption-related
expenses, payable when the adoption is finalized.
In addition, the company may give some paid
leave to adoptive parent employees based on
their length of service. Additional unpaid
leave is available for up to 60 days with
the approval of the employee's supervisor.
This plan is available to both male and female
regular salaried employees.
General Mills, Inc. of Minneapolis,
Minnesota, specifies that benefits will be
given to regular, active, salaried non-union
employees working 50 percent or more of the
standard work week with at least 1 year of
service. The company reimburses 80 percent,
up to $1,500, for these expenses: legal fees,
court and Government fees, agency and foreign
adoption fees, birth mothers' pregnancy expenses,
travel expenses, child's medical expenses,
and temporary foster care. Coverage includes
adoption of stepchildren and private adoption
(where legally permitted) in addition to licensed
agency adoptions. The company allows for unpaid
time off according to the company's parental
leave policy.
The Procter & Gamble Company of
Cincinnati, Ohio, reimburses employees for
up to $2,000 of eligible expenses at any time
after the child is placed in the family's
home and considers each child separately in
the case of multiple adoptions, permitting
a maximum of $6,000 payable to any one family
within a 1-year period. Employees with at
least 6 months of continuous regular employment
may be reimbursed, up to the $1,000 maximum,
for recognized adoption agency fees, placement
fees, maternity fees for the birth mother,
temporary foster care fees, and legal fees.
The company specifically excludes the following
adoption-related expense items from reimbursement:
transportation expenses, professional counseling
to the adopted child's biological parents,
institutional expenses (e.g., orphanage or
unwed mothers home), fees related to legal
guardianship, fees related to adoption of
adults, illegal adoption services or procedures,
or contested legal actions.
Xerox Corporation of Stamford, Connecticut,
acknowledges that because adoption costs vary
"depending on such factors as geographic location,
the nature of the adoption agency, and income
of the prospective parents (or parent), the
intent of the program is to provide some level
of assistance to employees who wish to adopt."
Xerox reimburses regular full-time or part-time
employees who adopt with up to $3,000 in expenses
such as: public and private agency fees, legal
and court fees, medical expenses (including
physical examinations for adopting parents
and maternity expenses for birth mothers),
foreign adoption fees, and temporary foster
care charges.
Summary
Adoption has become an accepted method of
building a family. Employers sensitive to
family issues recognize the importance of
adoption benefits to those considering adoption.
Many companies find that offering monetary
and/or leave benefits has created good will
within the company,has incurred minimal costs,
and has engendered a positive public image.
The appendices that follow the "References"
section of this factsheet provide the following
information:
Appendix I: Companies Offering Adoption Benefits
Appendix II: Other Adoption Assistance Programs
Appendix III: Other Adoption Activities for
Employees in the Workplace
This article was written by Gloria Hochman
and Mady Prowler of the National Adoption
Center in Philadelphia, Pennsylvania, for
the National Adoption Information Clearinghouse,
1992. It was revised in 1994.
Internet links added by Adoptions.com
2000
References
Adamec, Christine, and William L. Pierce.
"Parental Leave," in The
Encyclopedia of Adoption. New York:
Facts on File, 1991.
AFSCME Research Department. Leading the
Way. Washington, DC: American Federation
of State, County, and Municipal Employees,
AFL-CIO, February 8, 1991.
Association of Junior Leagues International,
Inc. "Summary of Action AJLI Legislative Priorities
102nd Congress," in Legislative Network.
Washington, DC: U.S. Department of Government
Affairs, 1992.
Bureau of National Affairs, Inc. Adoption
Assistance: Joining the Family of Employee
Benefits: Special Report #4. Washington,
DC: Bureau of National Affairs, April 1988.
Burkens, Glenn. "More and More Corporate
Benefits Plans Now Cover Adoptions." The
Philadelphia Inquirer, September 15, 1988.
Catalyst. Resources for Today's Parents:
Catalyst's Guide to Information on Pregnancy,
Child Care and Children's Education, Health
and Special Needs. New York: Catalyst,
1988.
Cohodas, Marilyn J. "On the Job: How Adoptive
Moms Can Win Maternity Leave." Parenting,
April 1992.
Hewitt Associates. Work and Family Benefits
Provided by Major U.S. Employers in 1991 (Based
on Practices of 1006 Employers). Lincolnshire,
IL: Hewitt Associates, (708) 295-5000, 1991.
National Adoption Exchange. Adoption Benefits
Plans: Corporate Response to a Changing Society.
Philadelphia: National Adoption Exchange,
1985.
Personal interview. Humerickhouse, Steve,
Director of Membership Development and Coordinator
of Legislative Affairs, Adoptive Families
of America, Minneapolis, Minnesota, 1992.
Appendix I: Employers Offering Adoption
Benefits
Click
here for a listing of employers offering
adoption benefits.
Appendix II:
Other Adoption Assistance Programs
In addition to employer-provided benefits,
those who adopt children with special needs
are entitled to reimbursement from other sources.
State Reimbursement
A reimbursement for non-recurring adoption
expenses (agency fees, legal costs, and transportation)
is available through each State for families
who adopt children with special needs. While
the definition of special needs differs from
State to State, generally it includes children
who have physical, emotional, or mental disabilities;
those who are older (usually older than 6,
sometimes older than 8 or 10); two or more
siblings placed together, and children from
minority cultures. Half of the expenses are
paid through State funds, the other half through
federal funds up to $2,000. The benefit differs
by State depending on the cost of the adoption,
State rules, and public awareness. For example,
California will pay only $400 no matter what
the cost of the adoption is, while Oregon
has done an extensive advertising campaign
to encourage the public to take advantage
of its fund. The average amount of money given
to an Oregon adoptive family through this
program is $669.
Military Subsidies
Military families are entitled to a reimbursement
of adoption costs up to $2,000 through the
Defense Authorization Bill of 1991. The law
provides payment for most adoption-related
expenses for infant, international, and special
needs placements, although travel expenses
are not included. There are bills presently
in Congress that would provide the same benefit
for all Federal Government employees, but
as of April, 1992 they have not yet been approved.
Tax Benefits
At one time, there was a tax benefit for
people adopting children with special needs.
However, this tax break was repealed by the
Tax Recovery Act of 1986. Over the years,
various bills have been proposed that would
allow a specific dollar amount as a deduction
for different types of adoptions. None has
yet passed. Contact the coordinator of legislative
affairs at Adoptive
Families of America (1-800-372-3300 )
for the current status of any legislation
in this area.
Appendix III:
Other Adoption Activities for Employees
in the Workplace
Today's climate, which supports family values
so strongly, provides an ideal setting in
which to introduce the idea of adoption benefits
to your employer and to encourage visible
support and encouragement of adoption. If
your company does not provide adoption benefits
to employees and you are considering adopting
a child, you may want to bring to your personnel
manager information about other companies
that provide adoption benefits and suggest
that similar benefits be incorporated into
the benefits package of your employer. Bringing
this article to him or her would be a good
way to start that process.
Sometimes an employer needs general education
about adoption in order to make a decision
about whether or not to offer adoption benefits.
In that case, the National Adoption Information
Clearinghouse can provide you with brochures,
factsheets, and other literature that will
help.
If your company already has a solid adoption
benefits policy, or perhaps to increase its
interest in having one, you may be able to
convince your company to sponsor one or more
adoption-related activities. The following
are some ideas. Maybe you can come up with
some additional ideas of your own.
- Try to persuade your company to become
an adoption advocate. Write or help them
develop an article on adoption for the company
newsletter. Such an article might feature
an employee who has adopted.
- Ask the editor of the company publication
if he or she will agree to begin a "Waiting
Child" column featuring children in your
State waiting for permanent families. The
National Adoption Center in Philadelphia,
Pennsylvania, can help by providing photographs
and information on appropriate children.
- Get permission to design a special recruitment
or adoption education program for your company,
including posters, brochures, films, and
speakers.
- Ask your employer if it would be possible
to incorporate an adoption message on company
products or services. Examples include slogans
printed on shopping bags and packages, placemats
to distribute in family restaurants, and
inserts in bills or advertisements.
- See if you can distribute adoption information
desk-to-desk or through an insert in pay
envelopes.
- Persuade your employer to provide "inkind"
services such as printing, equipment, and
supplies to a nonprofit adoption organization
in your area. Find out if company employees
can volunteer time during the work day to
assist a fledgling adoption organization,
such as an adoptive parent support group.
- Make a pitch before the company charitable
contributions committee to make a monetary
donation to an adoption agency for the purpose
of purchasing radio or television air time
to advertise the need for adoptive families.
- Ask the person in charge of facility management
if space could be made available for adoption
meetings, seminars, and training sessions
in your company building.
- Get permission for an adoption display
to be placed in the company lobby or cafeteria.
- Provide current information on adoption
to personnel officers, to include information
on adoption procedures and resources. Help
them to help other employees interested
in adoption.
- Ask your company to "Adopt a Child" and
work with you and a community adoption agency
to find an adoptive family for a specific
child or sibling group.
There are many ways for employers to help
facilitate the adoption of children in need
of permanent families. They might provide
direct adoption benefits, or they might participate
in one or more of the activities mentioned
above. Employers or employees seeking more
information about adoption benefits and adoption
in the workplace activities should contact
the National Adoption Center at (215) 735-9988
or the National Adoption Information Clearinghouse
at (888) 251-0075.
For more information, contact the National
Adoption Information Clearinghouse at naic@calib.com.
