FERS spouse survivor benefits

[PessOptimist]

OPM site is vague about it to say the least. Uses the word "may" a lot then never explains. Does anyone know what the spouse survivor benefits would be for a current employee under FERS?

So, keep it simple. I have 10 years fed service. I have been married to the spouse more than 9 months. We have no children. I die. No accident, no foul play, not at work.

She receives a vaguely described lump sum (is it the same as if I had less than 10 years?) and an annuity equal to 50% of what I would get if I retired today? Does anyone know how this really works? She is over 55 so don't tell me that stuff. And, I don't care about FEHB. I do care but do not clutter up the question with that stuff.

PO

 

[weatherweenie]

OPM site is vague about it to say the least. Uses the word "may" a lot then never explains. Does anyone know what the spouse survivor benefits would be for a current employee under FERS?

So, keep it simple. I have 10 years fed service. I have been married to the spouse more than 9 months. We have no children. I die. No accident, no foul play, not at work.

She receives a vaguely described lump sum (is it the same as if I had less than 10 years?) and an annuity equal to 50% of what I would get if I retired today? Does anyone know how this really works? She is over 55 so don't tell me that stuff. And, I don't care about FEHB. I do care but do not clutter up the question with that stuff.

PO

I think 50% of your annuity is right, if you select the full survivor benefit. The real benefit is, your wife will be able to continue on the Government healthcare plans. Without the survivor benefit, she will have to find her own insurance.

 

[WonderBoy]

Keeping it simple, you have the basic facts correct-- your spouse would receive a lump-sum death benefit of approx $31,786 if you die during 2014 (increases annually by the CSRS COLA percentage) plus one-half of your current annual salary (or one-half of your averaged high-three, if greater). In addition, your spouse would get an annuity that would be computed under FERS rules as if you "retired" on the day you died. You can ask your Human Resources for an estimate of that amount. Again, keeping it simple, a rough estimate would be: Averaged high-three salary multiplied by one-percent multiplied by your years of service divided by 2.

 

[PessOptimist]

I think 50% of your annuity is right, if you select the full survivor benefit. The real benefit is, your wife will be able to continue on the Government healthcare plans. Without the survivor benefit, she will have to find her own insurance.

I am not absolutely sure we are talking about the same thing. I select the full survivor benifit while still active? What else would I select? I know I select who gets whatever is coming. I am, once again talking about dying while an active employee, not after I retire.

 

[RazorCat]

It depends on whether you're retired or not.
Here's a helpful link that details each situation.
Guide to FERS Spousal Survivor Benefits Upon the Death of an Employee or an Annuitant
If you're still working with a minimum of 10 years service, A spousal survivor annuity is computed as if the employee retired optionally with no age reduction on the date of death. The surviving spouse is eligible to receive 50 percent of the employee's FERS annuity based on the deceased employee's type of service, age, length of service and high-three average salary at the date of death.
If you're an annuitant (retired), the surviving spouse gets whatever was elected (25% partial or 50% full survivor benefit). I chose 25% so she could keep health insurance. There are much more cost effective ways to provide for a surviving spouse then the full 50% benefit where you're getting taken for 10% of your monthly income on the bet you'll pass before your spouse (investments that create a permanent income stream, individual term life insurance (not FEGLI) purchased when young). You don't get that money back if you outlive them. I'd rather invest it and have a good term life policy in the interim.

 

[weatherweenie]

I am not absolutely sure we are talking about the same thing. I select the full survivor benifit while still active? What else would I select? I know I select who gets whatever is coming. I am, once again talking about dying while an active employee, not after I retire.

Oops, sorry about that. I had been doing research about survivor benefits, after retirement, last week, and had that on the mind.

It was interesting to learn that if a person doesn't select a survivor annuity, their spouse no longer has access to Federal health insurance.

 

[Cactus]

That's because the premium payments come out of the annuity. No survivor benefit, no premium payment, no insurance.