Survivors | S. Harman and Associates, Inc.

Survivors

Q – I am in FERS. What options do I have to provide for my spouse when I retire?

A – If you are married at time of retirement, you must either provide your spouse a full survivor’s benefit (50% of your Basic Annuity) or have your spouse’s notarized signature waving the full survivor’s benefit.

Q – If I have my spouse’s notarized signature, waiving the full survivor’s benefit, can I still provide something?

A – Yes, in fact, you could still provide the full survivor’s benefit with your spouse’s notarized signature. You could also provide 25% of your FERS Basic Annuity or no survivor’s benefit.

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Q – If I don’t provide a FERS survivor’s benefit can my survivor spouse still have FEHB coverage?

A – Your survivor must have a federal survivors’s benefit or their own federal retirement benefit to continue FEHB coverage.

Q – How much does the FERS survivor’s benefit cost me?

A – Under FERS, if you elect (full) 50% of your benefit as the survivor’s benefit, it reduces your Basic FERS benefit by 10%. If you elect (partial) 25% of your annuity, it will reduce your Basic FERS benefit by 5%.

Q – Is the FERS survivor’s benefit adjusted for COLA?

A – Yes, the percentage of COLA is routinely based on CPI minus 1% is applied to the survivor’s benefit and compounded annually during your lifetime and the survivor’s benefit will continue to adjust for COLA after your death.

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Q – Does that mean that the “cost” for the FERS survivor’s benefit gets recomputed each year?

A – No, even though your benefit increases with COLA, the cost is calculated on the survivor’s base, which does not increase. There are two other points that most Federal employees and retirees are not aware of:

• The “cost” to you comes out of your benefit pretax, and

• If your spouse predeceases you, OPM stops the reduction in your benefit prospectively. Of course, you must notify OPM of your spouse’s death and provide a certified copy of the death certificate.

Q – What if I am not married when I retire and later marry?

A – Any time a retiree marries after they have retired, there is a 2-year period from the date of marriage to elect a survivor’s benefit for your spouse. However, OPM will calculate what should have been withheld from your annuity for the period you have already been retired plus interest at 6% and withhold an actuarially computed amount from your benefit. This makes the reduction whole back to date of retirement or to the point where the reduction in your annuity ended upon your spouse’s death. Of course, this is in addition to the future amount that must be withheld to provide the survivor’s benefit.

Q – Can I make changes in my survivor’s benefit after I retire?

A – There are very limited changes, which you can make:

• You may revoke or change the survivor’s election no later than 30 days after receipt of 1 st adjudicated payment with your spouse’s notarized signature

• If you elected less than a full survivor benefit or self-only benefit at retirement, you may increase the amount within 18 months of retirement. The additional reduction, plus interest, will be retroactive to the retirement date. Additionally, there is a one time payment under CSRS of $245 per thousand of your annuity used to increase the survivor’s base. In FERS, if you are changing from partial to full or from none to partial survivor’s spouse benefit you will pay 12.25% of your benefit if you are changing from none to full you will pay 24.5% of your benefit.

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Q – What if I provided a survivor’s benefit for my spouse but I outlive my spouse?

A – First, you must notify OPM as soon after the death of your spouse as possible. They will stop the reduction in your benefit prospectively. (You don’t get a refund of the money that has already been withheld.) You will be asked to submit a certified copy of the death certificate. You will also, in most cases, change your FEHB coverage from family to self-only. Therefore, you will see an increase in your benefit due to the cessation of the reduction for the survivor’s benefit and the change in FEHB premiums from family to self-only.

Q – What if I die in an automobile accident before I retire, what would my spouse get?

A – The cause of death has no bearing on the survivor’s benefit, so long as the death is NOT work-related.

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FERS

If at the time of your death you have 18 months of service but less than 10 years, your surviving spouse will be entitled to:

• Lump sum of $41,568.30 (2024 figure)

PLUS

• One-half of the employee’s annual rate of pay

OR (whichever is higher)

• One-half of the High-3 Average Salary

(The above can be taken as an annuity or as a lump sum)

PLUS

• Social Security survivor’s benefits (if worker was insured and survivor is eligible)*

PLUS

• Thrift Savings Plan Money

If you have 10 or more years of service at the time of death your surviving spouse will be entitled to:

• Lump sum of $41,568.30 (2024 figure)

PLUS

• One-half of the employee’s annual rate of pay

OR (whichever is higher)

• One-half of the High-3 Average Salary

(The above can be taken as an annuity or as a lump sum)

PLUS

• Social Security survivor’s benefits (if worker was insured and survivor is eligible)*

PLUS

• Thrift Savings Plan Money

PLUS

• A monthly benefit equal to 50% of the employee’s accrued basic FERS benefit

* Survivor spouse must be at least age 60 or any age with a child under age 16 or disabled in their care to be eligible for Social Security survivor’s benefits. If the survivor spouse qualifies for benefits, they are subject to the Social Security earnings test, the Government Pension Offset and the dual entitlement clause.

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Q – What if I die before retirement but don’t have an eligible survivor spouse or child?

A – If you die before you have recovered the amount that you have paid into the retirement fund and there is no one eligible for a monthly survivor’s benefit, there will be a lump sum payment to your designated beneficiary.

Q – What if I have an eligible child(ren) at the time of death?

A – Eligible children are entitled to an automatic survivor’s benefit whether you die as an employee or as a retiree.

Q – Can you define an eligible child(ren)?

A – To qualify for a survivor benefit a dependent child or stepchild of the deceased employee or retiree must be unmarried and under age 18 or a full-time student up through age 21. However, an unmarried dependent child who is 18 or over and is incapable of self support because of a physical or mental disability that began before age 18, or an unmarried dependent child who is a full-time student age 18 through 21, may also be eligible.

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Q – What is the amount of the surviving child(ren)’s benefit?

A – When the deceased is survived by a spouse or former spouse who is the parent of the child, then the monthly survivor benefit payable to that child is whichever of the following amounts is the least (2024 figures):

• $655;

• $1,965 divided by the number of eligible children.

The FERS surviving child’s benefit is 100% offset by any Social Security surviving child’s benefit payable .

If the deceased is not survived by a spouse or former spouse who is the parent of a child of the employee, that child is entitled to the least of (2024 figures):

• $787;

• $2,362 divided by the number of eligible children

The FERS surviving child’s benefit is 100% offset by any Social Security surviving child’s benefit payable .

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Q – What would cause my surviving spouse to lose their survivor’s benefit?

A – The following cause the survivor’s benefit to terminate:

• A current spouse’s future entitlement to survivor’s benefits may be terminated by divorce or death. The reduction in annuitant’s rate to provide survivor protection is removed and the annuitant’s benefit is restored to the full rate prospectively.

• A widow’s/widower’s receipt of survivor’s benefits is terminated upon death.

• A widow’s/widower’s receipt of survivor’s benefits is terminated upon remarriage prior to age 55 unless the original marriage had lasted 30 or more years. Benefits are restored (without COLAs for the intervening period) if the second marriage later ends.

• A former spouse’s future entitlement to survivor’s benefits is terminated by death or remarriage prior to age 55. The annuitant’s benefit is restored to the full rate. Entitlement is NOT restored to the former spouse if that marriage later ends.

• A former spouse’s receipt of survivor’s benefits is terminated by remarriage prior to age 55. Benefits are NOT restored if that marriage later ends.

Q – By electing at retirement a survivor’s benefit am I connecting my spouse to any other Federal benefit?

A – Yes, by providing your spouse with a survivor’s benefit you are potentially connecting them to the FEHB program for life. See the health insurance section for specific requirements and potential value.

Q – What if I am not married at time of retirement?

A – If you aren’t married at time of retirement you cannot elect a survivor spouse benefit for anyone else. There is an insurable interest survivor’s benefit election provided for in the law.

Q – Who is an insurable interest?

A – An insurable interest survivor annuity is an annuity provided to someone who has an insurable interest in you. The insurable interest is presumed to exist if you name one of the following:

• Your current spouse (you would provide the insurable interest survivor’s annuity to your current spouse only if the former spouse has rights to the survivor spouse annuity);

• A blood or adoptive relative closer than first cousins;

• A former spouse;

• A person with whom you are engaged to be married;

• A person with whom you are living in a relationship which would constitute a common law marriage if the jurisdiction recognizes common law marriages.

• To demonstrate eligibility to elect an insurable interest annuity at time of retirement, OPM will ask for proof to establish the existence of a domestic partnership. Same sex partners who are legally married in a state that recognizes same sex marriages will be treated as spouses as a result of the Supreme Courts decision that Section 3 of the Defense of Marriage Act was not constitutional, same-sex partners who have been married in a state that recognizes same-sex marriages are spouses. Civil unions continue to be considered to have an insurable interest.

If you name someone other than those listed above, you must submit an affidavit from at least one person with personal knowledge of the named person’s insurable interest in you.

Q – What does an insurable survivor annuity cost?

A – Before you are allowed to elect an insurable interest annuity you must prove, at your expense, that you are in GOOD health.

The insurable interest survivor annuity is 55% of the reduced basic yearly annuity being received at the time of the retiree’s death. The insurable interest survivor annuity is adjusted for COLA.

The cost of an insurable interest benefit is based upon the age difference between the retiree and the insurable interest survivor:

AGE OF INSURABLE INTEREST SURVIVOR IN RELATION TO AGE OF RETIREE		REDUCTION IN BASIC ANNUITY

Older or less than 5 years younger		10%
5 but less than 10 years younger		15%
10 but less than 15 years younger		20%
15 but less than 20 years younger		25%
20 but less than 25 years younger		30%
25 but less than 30 years younger		35%
30 or more years younger		40%

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