Recognizing the unique challenges associated with adoption, Drexel University has implemented an Adoption Assistance Program administered by Progyny. Under this program, Drexel will reimburse eligible adoption expenses of up to $5,000 (per child) with a maximum lifetime limit of $10,000. The program also offers you unlimited access to a dedicated Patient Care Advocate with Progyny, who will provide you with information, resources, and emotional support throughout your adoption journey. To initiate this assistance, you may call Progyny at 844.930.3313.

Eligibility

All University benefits-eligible full and part-time faculty and professional staff are eligible to participate in the program. Professional Staff members affiliated with a collective bargaining agreement should refer to their bargaining agreement for applicability.

How Reimbursement Under the Program Works

1. To obtain reimbursement under the program, contact your Progyny Patient Care Advocate at 844.930.3313 and request assistance with the Adoption Reimbursement application.
2. Your Progyny Patient Care Advocate will review the reimbursement policy with you and help you complete the application.
3. Once you are ready to request a reimbursement, submit your application for expense(s) for reimbursement, including the Progyny Attestation Form.
4. Progyny will review expenses and make a determination as to payment. If it rejects a claim, it will notify you in writing. If it accepts a claim for reimbursement, it will submit reports to Drexel’s dedicated point-of-contact for review and final approval. Individuals have a right to appeal any determination (by Drexel or Progyny) to Drexel.
5. For approved amounts, Drexel will issue reimbursement to you through your regular paycheck within the next two to three payroll periods.

Note: Applications for reimbursement will be accepted only upon official finalization of the adoption process and only if they are submitted to Progyny within 12 months of incurring the expense. If there is a significant delay, for reasons beyond your control, in the finalization of an adoption that would cause more than 12 months to have passed between the date an expense is incurred and the date you apply for reimbursement, you may attach a clear explanation of the reasons for the delay, and Progyny will consider those reasons in determining whether to make reimbursement for them.

Eligible Expenses

Only eligible expenses that are incurred after an eligible employee’s date of hire and submitted within twelve months of the date they are incurred will be eligible for reimbursement under the program. The following expenses may be eligible for reimbursement: if incurred in connection with an adoption*: agency and placement fees; application fees; consultant/specialist fees; legal fees and court costs; costs to adopt a stepchild or the child of a registered domestic partner; eligible expenses paid by a registered domestic partner who lives in a state that allows such parent or co-parent to adopt his or her partner’s child; fees for home studies; fees for immigration, immunization, and translation fees; fees for medical assessment of adopted child(ren); parent, child, and family adoption counseling expenses; temporary foster care expenses; reasonable transportation, meals and lodging for the adoptive parents and/or adopted child(ren) only; and Visa and passport fees for adopted child(ren).

However, the following expenses are not eligible for reimbursement: adoptions that aren’t legally recognized or finalized; any expenses that violate state or federal law; costs for personal items, food (other than meals specifically in connection with travel for the adoption), and clothing for the parents or child(ren); costs paid using funds received from any federal, state or local program; expenses allowed as a credit or deduction under any other federal income tax rule; expenses already paid for or reimbursed by another employer, benefit, program or party; expenses for adopting an individual aged 18 or older, unless they are physically or mentally incapable of self-care; expenses not paid in US dollars; and voluntary donations or contributions.

*Employee must provide copy of an executed adoption agreement or letter from an attorney to be considered eligible. Expenses incurred in pursuit of an adoption that does not result in the successful placement of an adopted child are eligible for reimbursement under this Adoption Assistance Program.

Tax Consequences

In general, adoption assistance benefits are excluded from income for federal income tax purposes. However, there are two significant situations where the exclusion does not apply. First, the exclusion will not apply to the adoption of a stepchild. Second, at higher income levels, the exclusion begins to phase out until it becomes a fully taxable benefit.

There are certain other tax considerations that you may wish to take into account. Under the Internal Revenue Code, you may be eligible for an income tax credit to offset the amount that you pay in federal income taxes. In some cases, this credit may be more valuable than the benefits payable under this policy. In that case, you may seek to take advantage of the tax credit instead of the benefits under this plan. You should also keep in mind that – although these adoption benefits may be exempt from federal income tax – certain federal payroll taxes (like your contributions to Social Security) and, in most cases, state taxes (like Pennsylvania income tax) will apply to these benefits. As a result, deductions will be taken from reimbursements made to you under the program.

This discussion of tax consequences aims to provide you with general information. It is not and is not intended to be tax advice or to be a promise or guarantee of any particular tax consequence. To understand how the various tax laws apply to you and what you need to do to meet your tax obligations, you should consult your personal tax advisor.

It is worth keeping in mind that the tax laws affect only how adoption assistance benefits that you receive will be taxed. They do not change whether the benefits will be available to you.