Who is Eligible, Page 2

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.

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."

Credits: Child Welfare Information Gateway (http://www.childwelfare.gov)