Welcome to Part 3 of our comprehensive series on Survivor Benefits. In this installment, we delve into the intricacies of electing survivor benefits for former and new spouses, offering guidance for retirees facing these critical decisions.
Electing a Survivor Benefit for a Former Spouse
The process of electing survivor benefits for current and former spouses occurs either at the time of retirement or following a qualifying event post-retirement. If your marriage ends after retirement, contacting the Office of Personnel Management (OPM) is essential to elect survivor benefits for a former spouse. OPM will provide the necessary information and forms to determine eligibility and make the election.
Providing a Survivor Benefit for a New Spouse
For retirees who marry after retirement, electing a reduced annuity within two years of the marriage date allows for a survivor annuity for the new spouse. Under CSRS, the survivor benefit can range from 55 percent of $22.00 to 55 percent of the unreduced annuity. Under FERS, a full benefit is 50 percent of the unreduced annual basic annuity, and a partial benefit is 25 percent of the unreduced annual basic annuity.
Considerations for Post-Retirement Marriages
Remarrying the same person as at retirement limits the survivor annuity to the one elected at retirement. A post-retirement marriage results in two reductions in the annuity if a survivor benefit is elected. The first reduction depends on the amount elected for the survivor annuity, and an actuarial reduction is also applied, continuing even if the marriage ends.
Conclusion
Electing survivor benefits for former and new spouses requires careful consideration of various factors, including financial implications and eligibility criteria. Understanding these options is crucial for retirees seeking to provide financial security for their loved ones.
Stay tuned with Pathfinder Retirement for Part 4, where we’ll continue to explore survivor benefits and offer guidance on making informed decisions to protect your family’s future.