When your marital status or your family size changes it can affect your Federal benefits and options.
Getting married or having a child is always a joyous time but dealing with practical issues means:
- Updating Designations of Beneficiary Forms;
- Reviewing Life Insurance Coverage;
- Changing Health Insurance Coverage (including the Federal Employees’ Dental and Vision Insurance Program); and
- Reviewing Your Flexible Spending Account Options.
One thing that you do not have to be concerned about is electing a survivor spouse benefit while you are employed. Whether you are in CSRS or FERS and you have at least 5 years in CSRS or at least 18 months in FERS and your death is not work-related, your survivor spouse will be entitled to a survivor’s benefit from OPM. If your death is work-related, your survivors will be entitled to OWCP survivor’s benefits. Additionally, if your surviving spouse is covered by FEHB on the date of your death and they are entitled to the survivor’s benefit they will have lifetime entitlement to continue under FEHB.
Updating Your Designation of Beneficiary Forms (all four of them)
TSP-3 — Thrift Account*;
SF-2823 — FEGLI;
SF-1152 — Unpaid compensation if you should die while employed;
SF-2808 (CSRS) & SF-3102 (FERS) — for your unrecovered contributions to the retirement fund. This applies only if you die before recovering the amount you contributed to the retirement fund and have no one eligible to receive a monthly survivor’s benefit.
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*NOTE: TSP-3 only: If you name a minor as a beneficiary, upon your death, the minors portion will be paid to the minor.
Each of the assets will be paid out in a standing order of precedent.
- Designated person;
- Spouse;
- Child or children equally;
- Parent or parents;
- Executor or Administrator of your Estate;
- Next of kin per the laws of your State of residence at time of your death.
Therefore, each asset will be ultimately paid, however, processing time will be longer if the Standing Order of Precedent is followed.
You do not need an Open Season to change your designation of beneficiary but it is your responsibility to keep them current. A Will never supercedes a designation of beneficiary.
In the FEGLI program, any of the QLEs allows you to Elect the Basic FEGLI, Option A, 1 to 5 multiples of Option B and/or C or to increase the number of multiples. The timeframe for increasing any FEGLI is 31 days before to 60 days after the QLE. The increase in coverage as a result of the QLE will be the first day after the election is received by your Human Resources and you are in a pay and duty status after the date of the event.
Federal Employees’ Group Life Insurance (FEGLI)
Experiencing qualifying life events (QLEs) —
- Marriage;
- Divorce;
- Death of a Spouse;
- Acquiring an eligible child (a child is defined as an unmarried, dependent child under age 22, including adopted children, recognized natural children, stepchildren, or foster children if living with employee/annuitant in a regular parent/child relationship). Additionally, children age 22 or older incapable of self-support, if disabling condition began before age 22 allows for a change in FEGLI coverage.
Federal Employees’ Health Benefits (FEHB)
The FEHB Qualifying Life Events are very similar to those for FEGLI.
Change in family status:
- Marriage, divorce, annulment;
- Birth, adoption, acquiring a foster or stepchild, issuance of a court order requiring employee to provide coverage for a child;
- Last child loses coverage because of age;
- Disabled child becomes capable of self-support;
- Child acquires other coverage by court order;
- Death of spouse or dependent.
Any of these events allows you to enroll or to go from self only to self plus one or self and family, or from self and family to self plus one or self only, or if you have self and family to add the newly eligible person to the coverage.
You can complete the request 31 days before the event and up to 60 days after the event.
The coverage change is generally effective the first day of the first pay period that begins after the enrollment request is received and that follows a pay period during which you are in pay and duty status for 64 hours.
Flexible Spending Accounts (FSA)
The enrollment change must be made from 31 days before the event to 60 days after the event. The requested change must be consistent with the qualifying life event and you cannot enroll or increase your election(s) after October 1st of any year (you would have to wait until Open Season).
Federal Employees’ Dental and Vision Insurance Program (FEDVIP)
Acquiring a new family member or a family member newly eligible for coverage allows you to increase your FEDVIP coverage from self only to self plus one or to self and family or from self plus one to self and family.
Losing a covered family member allows you to decrease your FEDVIP coverage from self and family to self plus one or to self only or from self plus one to self only.
As a result of certain QLEs such as marriage, divorce, birth, death, etc. you may enroll outside of an Open Season. The enrollment change must be received by BENEFEDS (www.BENEFEDS.com).
The change can be requested from 31 days to 60 days after the event date.
Qualifying Life Events (QLEs)
Possible FEDVIP Enrollments Outside of Open Season
| QLEs that permit enrollment outside of Open Season | From Not Enrolled to Enrolled | Time Limit to Submit QLE |
| Losing other dental/vision coverage (eligible or covered person) | Yes | From 31 days before to 60 days after the event date |
| Returning to pay status from active military duty (enrollee or spouse) | Yes | Within 60 days after the event date |
| Annuity or compensation restored | Yes | Within 60 days after the event date |
Plan Change QLEs: Below is a table of the QLEs that may permit you to change your enrollment outside of Open Season.
Possible FEDVIP Enrollment Changes Outside of Open Season
| QLEs that may permit a change in enrollment | INCREASE from Self Only to Self Plus One or to Self and Family or From Self Plus One to Self and Family | DECREASE from Self and Family to Self Plus One or to Self Only or From Self Plus One to Self Only | Cancel Coverage | CHANGE from one plan to another | Time Limit to Submit QLE |
| Acquiring an eligible family member | Yes | No | No | No | From 31 days before to 60 days after the event date |
| Losing a covered family member | No | Yes | No | No | No time limit |
| Losing other dental/vision coverage (eligible or covered person) | Yes | No | No | No | From 31 days before to 60 days after the event date |
| Moving out of regional plan’s service area | No | No | No | Yes | No time limit |
Cancellation QLEs: Below is a table of the QLEs that may permit you to cancel your enrollment outside of Open Season.
Possible FEDVIP Enrollment Cancellations Outside of Open Season
| QLEs that permit enrollment cancellation outside of Open Season | From Enrolled to Not Enrolled | Time Limit to Submit QLE |
| Leaving pay status due to deployment to active military duty (enrollee or spouse) | Yes | From 31 days before to 60 days after the event date |
| Transferring to an eligible position with a Federal agency that provides dental and/or vision coverage with 50 percent or more employer-paid premiums | Yes | From 31 days before to 60 days after the event date |
NOTE: You cannot perform these actions through www.BENEFEDS.com. You must call BENEFEDS Customer Service if you wish to cancel your enrollment outside of Open Season.
Survivor’s Benefits in Retirement
If you are approaching retirement you will have to decide whether to provide a potential survivor spouse benefit and if so how much.
Actually, if you are married at time of retirement (legally separated is still married) your spouse will have to waive the full survivor spouse benefit (CSRS — 55% of your annuity; FERS — 50% of your FERS Basic benefit) in order for you to provide anything less than the full survivor spouse benefit.
If your spouse predeceases you, you have most of the same decisions to think about but in reverse — going from self and family to self only if there are no eligible children on the FEHB and FEDVIP. Reevaluating your need for the FEGLI. Making sure that your Designation of Beneficiary forms are updated.
Affect of Divorce on Federal Benefits
Unfortunately, when a marriage ends in divorce there are all of these considerations plus more.
Many Federal employees and their attorneys mistakenly believe that Qualifying Domestic Relations Orders (QDROs) apply to Federal Benefits; they do not. “A substantial number of State Court Orders are drafted under the mistaken belief that the Employee Retirement Income Security Act (ERISA) (29 U.S.C. 1001 et. seq.) applies to CSRS or FERS benefits. Sections 1003(b)(1) and 105 of Title 29 United States Code, exempt CSRS and FERS from ERISA” which created the term “qualified domestic relations order.” QDRO’s summarize the division of retirement benefits under ERISA plans. QDRO’s are not acceptable to affect CSRS or FERS benefits.
An award of a portion of a CSRS or FERS benefit can not begin until the Federal employee retires. Further under the Civil Service Spouse Equity Act (CSSEA) a former spouse can be entitled to a portion of the retirement benefit while the retiree is living, a survivor’s benefit only, both or a portion of refunded retirement contributions. Entitlement to FEHB coverage can be provided under CSSEA as long as some portion of either the benefit or a survivor’s benefit is provided, however, the former spouse will pay the full premium — there is no government portion of the premium.
Because there is such confusion on this issue OPM has produced “A Handbook for Attorneys on Court-Ordered Retirement, Health Benefits and Life Insurance Under the
- Civil Service Retirement System Benefits
- Federal Employees’ Retirement System Benefits
- Federal Employees’ Health Benefits Program
- Federal Employees’ Group Life Insurance Program”
Affect of Divorce on the Thrift Savings Plan
As with OPM’s benefits, QDRO’s do not apply to the TSP. A qualifying retirement benefits court-order for the TSP must meet four basic requirements as set forth in 5 CFR Section 1653.2.
- It must be issued by a court in any of the 50 States, District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands or the Virgin Islands, or by any Indian Court as defined by 25 U.S.C. Section 1301(3).
- It must expressly relate to the TSP. This means that it must specifically contain the name “Thrift Savings Plan.” Terms such as “all retirement benefits,” “Government benefits,” “Federal retirement benefits,” “Thrift Savings,” or “Thrift Savings Account” are NOT adequate.
- If the court order requires a payment from a TSP account, it must clearly describe the payee’s entitlement. It can only award a specified dollar amount or a fraction or a percentage of the participants account as a specific past or current date.
- A court order can require a payment only to the participant’s current or former spouse or to the participants dependents.
The TSP will not accept a court order that requires payment in the future.
OPM’s “A Handbook for Attorneys on Court-Ordered Retirement, Health Benefits and Life Insurance Under the
- Civil Service Retirement System Benefits
- Federal Employees’ Retirement System Benefits
- Federal Employees’ Health Benefits Program
- Federal Employees’ Group Life Insurance Program”
does not apply to the Thrift Savings Plan, therefore, the Thrift Board has developed their own informational booklet (TSPBK11) “Court-Orders and Powers of Attorney,” which covers what can and cannot be accomplished in a divorce decree or court-ordered property settlement.