Welcome back to our ongoing series, “Everything About Survivor Benefits.” In this installment, we’ll be focusing on some important aspects of survivor benefits, including how employment income affects survivor annuities, what partial survivor benefits are, and the requirements for choosing not to provide a survivor benefit for your spouse when you retire.
Does Employment Income Affect Survivor Annuities?
No, your income from employment with the government or any other employer will not affect your spousal survivor annuity. However, it’s important to note that the income of a child may affect some types of child benefits.
Partial Survivor Benefits
Under the Civil Service Retirement System (CSRS), you can elect to provide less than the maximum survivor benefit. This partial survivor election is based on 55 percent of the annual base amount you choose. For example, if you choose a survivor base of $3,600, then the benefit will be 55 percent of $3,600, which would be a survivor benefit of $1,980 per year or $165 per month. To elect a partial survivor benefit under CSRS, you must attach the form Spouse Consent to Survivor Election (SF-2801-2) to your application, signed by your spouse in the presence of a notary.
Under the Federal Employees Retirement System (FERS), individuals can also elect a partial survivor benefit, which is based on 25 percent of one unreduced annual base annuity. Your spouse must complete and attach Spouse Consent to Survivor Election (SF-3107-2) to your application.
Waiving the Survivor Benefit for Your Spouse
If you’re married when you retire and decide not to provide a spousal survivor benefit, you must obtain your spouse’s consent to the election. The consent form, which is part of the application for retirement benefits, must be completed in the presence of a notary public or other official authorized to take oaths.
The spousal consent requirement may be waived if it’s shown that the spouse’s whereabouts cannot be determined. A request for a waiver must include a judicial determination or affidavits attesting to the efforts made to locate the spouse and the inability to do so.
In conclusion, understanding your options regarding survivor benefits is crucial when planning for retirement. Be sure to consult with a financial advisor or retirement specialist to determine the best course of action for your individual circumstances. Stay tuned for the next installment of our series, where we’ll continue to explore the ins and outs of survivor benefits.