Federal Survivor Benefits: How to Plan Ahead

A federal employee can improve their annuity by making a deposit for any active duty service in the armed forces. Knowing what happens to your loved ones during your death is crucial if you have a spouse or children who are financially rely on you.

Survivor Annuity in the Event of Death While Working

Whether or not your spouse is eligible for FERS benefits is based on how long you’ve worked for the company. On top of a lump sum payout of around $37,000 in 2022 (updated yearly with inflation), your spouse would get an amount equal to one-half the highest three consecutive years of average earnings (your “high-3”) if you’ve worked for at least 18 months but less than ten years.

A survivor annuity equivalent to 50% of what you would have earned if you had retired on the day of your death would be given to your spouse if you had served ten or more years of service. Survivor benefits are available to unmarried children under 18 (or 22, if they are still in education). Moreover, there is no age restriction for those unable to support themselves because of a medical condition before age 18 and unmarried.

If the CSRS system covered you, your spouse would get 55% of the pension you earned if you were retired at the time of your death. A survivor benefit would be available to children who match the FERS conditions.

Cost-Of-Living Adjustments (COLAs) are applied yearly to spouses’ and children’s survivor annuities.

After Retirement and Death Benefits for Survivors

You must give a full survivor annuity for a former spouse unless they agree in writing to a reduced amount or none, in which case you are compelled by law to do so.

FERS regulations allow you to choose a survivor annuity that is either 50% or 25% of your original annuity amount. Your basic annuity will be reduced by 10% for a FERS complete survivor annuity. In the case of a portion of a FERS annuity, it is 5%.

CSRS guidelines allow you to select a survivor annuity from $1 per year to 55% of your standard annuity. An additional 10% would be taken out of your annuity to cover the cost of the second benefit mentioned.

If you choose a survivor annuity, it will rise annually to reflect inflation and be given to your survivor for the rest of their life unless they marry again before age 55. That annuity will be boosted by any COLA you have earned while retiring. Further COLAs will enhance the surviving annuity and your qualifying children’s annuities from that point on.

The Thrift Savings Plan and Life Insurance

The proceeds of your Federal Employees Group Life Insurance (FEGLI) and Thrift Savings Plan (TSP) account will also go to your spouse. This will be in addition to any survivor annuities your spouse may receive, unless you designate someone else to get them or a court order assigns these benefits to someone else.

Health Advantages

Any amount of annuity that your spouse receives will allow them and all eligible children to continue their Federal Employees Health Benefits coverage. Even if you have enough money in your annuity to meet the premiums, your spouse might still contribute to offset the difference.

Contact Information:
Email: [email protected]
Phone: 8889193252