Per the r1672 release letter,

The University's definition of a natural or adopted child for group health
and welfare eligibility is generally broader than the tax laws allow under
the definition of "qualifying child" and "qualifying relative" in Internal
Revenue Code (IRC) Section 152 that was revised by WFTRA (Working Families
Tax Relief Act of 2004) and signed by President Bush in October 2004.....

For individuals who are not qualifying dependents under IRC Section 152 and
as such the employees are not entitled to the tax exemption on the premium
for the dependents, the University must calculate imputed income on the
employer's contributions for health coverage (medical, dental and vision)
and must make TIP adjustments to the employee's contribution.

Rather than align the University's definition with that of WFTRA (Working
Families Tax Relief Act of 2004), the University has decided to keep its
more inclusive definition, but therefore must calculate imputed
income.  This release implements several changes for this purpose:

- It introduces a new 'relationship' code 'T' to identify a non tax
   dependent natural or adopted child, to make a distinction from
   those who are tax dependent.  This new code will be
   added to the UPAY 850 Enrollment, Change, Cancellation
   or Opt-Out form for employees, however it's not issued in
   the release.

- Consistency edit programs for health, dental, vision, etc. plans
   are modified to treat the new relationship code in the same
   manner as other child/grandchild codes with respect to age
   limits and other editing.

- PPEI360 in monthly periodic maintenance will clear dependent
   coverage for code 'T' as it does for other child relationships
   when it sets an end date.

TABLE UPDATES
   Transactions are provided for updating:
- data element table
- message table
- code translation table

IMPLEMENTATION
   R1672 is date mandated to be *in effect* after the last compute paying
in 2005 and before the first compute paying in 2006.  That's really tight
for Davis and San Diego because the two computes are so close together, on
consecutive nights for SD and separated by only one night for Davis.  The
good news is that we can install the program code in advance, and then
'turn on' the changes at the right point in time simply by applying the
table updates.  May we have your ok to install with this two-part approach?

   bvb