Federal employees under the Federal Employees Retirement System (FERS) can elect a survivor annuity for a spouse, child, or sibling with an “insurable interest” (closer than a first cousin). Spouses are the most common recipients.
A FERS retiree (annuitant) is someone separated from federal service who meets all requirements for a FERS annuity, including having filed (or being deemed to have filed) for immediate, early (VERA), discontinued service (DSR), or deferred retirement with at least five years of creditable service.
Spousal Survivor Annuity Options
Retiring FERS employees elect a survivor annuity via Form SF 3107. Options include:
- Maximum: 50% of the annuitant’s unreduced annuity.
- Less than Maximum: 25% of the annuitant’s unreduced annuity.
- Other amounts are possible if a former spouse receives a portion due to a court order.
Key Benefits
- FEHB Eligibility: A survivor annuity ensures the surviving spouse retains Federal Employee Health Benefits (FEHB) if the annuitant was enrolled for the last five years of service.
- COLAs: Survivor annuities receive the same cost-of-living adjustments (COLAs) as the annuitant’s annuity, including past and future COLAs.
Survivor Annuity for Deceased Disability Annuitant
- After Age 62: Calculated the same as non-disability annuitants (50% or 25% of unreduced annuity).
- Before Age 62: 50% (or 25% if elected) of an earned annuity, adjusted for time between retirement and age 62, plus COLAs received.
Survivor Annuity for Deceased Former Employee
Former employees ineligible for immediate retirement may qualify for a deferred annuity. If they die before the annuity starts, the surviving spouse may receive:
- Unreduced Annuity: 50% of the former employee’s basic annuity, starting when the deceased would have qualified for an unreduced annuity.
- Reduced Annuity: If started the day after death, the 50% annuity is actuarially reduced using Present Value Conversion Factors (available on the OPM website).
- FEHB Ineligibility: Surviving spouses cannot enroll in FEHB.
Electing a survivor benefit is crucial for those retiring on an immediate annuity, as it allows their beneficiary to continue their FEHB coverage after the annuitant has died. Note that if you choose the 25% survivor annuity, it requires notarized authorization of your spouse/beneficiary.
For help navigating your complex federal benefits, reach out to a Federal Retirement Consultant (FRC®) who can answer your questions.
