Benefits Payable to Surviving Spouses of Employees
Who Die in Service
under the Civil Service Retirement System
The word “Retirement”directs our thoughts to post-career years. In the past year, this column attempts to direct thoughts towards arriving at retirement properly and effectively. All the while protecting yourself, you’re Family, and your paycheck.
The Department’s/facilities I have worked with will confirm that the vast majority of the employees have outdated beneficiaries listed or none listed at all. Although there is a “stated order of precedence”that OPM defines, the absence of current listed beneficiaries can cause delays. The monies you would want your Family to receive may end up in Probate. This would be an unnecessary delay and expense. When I am confronted with individuals that speak of “order of precedence”, I remind that person that they should consider the fact that all the benefits listed below have blank beneficiary forms available for a reason.
This booklet should be kept in a safe location along with a current Social Security Statement, current LES, and copies of all beneficiary forms. Your Family needs to be aware of this information. Most are surprised at the substantial benefits their Families are entitled to if they pre-decease retirement. These are outlined below.
Employee has completed at least 18 months of creditable civilian service; anddied while subject to CSRS deductions (Standard Form 2800).
A. General
A spousal survivor annuity is 55 percent of an annuity computed as if the
employee had retired on a disability retirement as of the date of death.
B. Computation ofBenefit—RegularFormula
A spouse receives 55 percent of the HIGHER of 1 or 2 below:
1. An annuity computed under the general formula based
on the deceased employee's high-3 average salary and length of service
to date of death, including credit for unused sick leave.
2. A "guaranteed minimum" which is the LESSER of:
• 40 percent of the deceased employee's high-3 average salary; or
• The regular annuity obtained after increasing the deceased
employee's length of service by the period of time between the date
of death and the date he or she would have been age 60.
NOTE 1: If the employee has less than 3 years of service, the salary is
simply averaged for the total period of service.
C. Deceased LawEnforcementOfficers andFirefighters
1. If, at the date of death, the employee was a law enforcement officer or
firefighter and:had at least 20 years of law enforcement or firefighter service, thespouse receives 55 percent of an annuity computed under the specialformula for law enforcement officers and firefighters based on the deceasedemployee's high-3 average salary and length of service to date ofdeath, including credit for unused sick leave.
2. If, at the date of death, the employee did not meet the requirements
stated above, or was not age 50 with 20 years of law enforcement/
firefighter service, the spousal annuity is computed under the regular
formula.
D. Deceased AirTrafficControllers
1. If, at the date of death, the employee:
• Was age 50 or older and had at least 20 years of service as an air
traffic controller, or
• Had at least 25 years of air traffic controller service, regardless of
age, the spouse receives 55 percent of an annuity computed under
the special formula for air traffic controllers (see Chapter 54) based
on the deceased employee's high-3 average salary and length of
service to date of death, including credit for unused sick leave.
2. If, at the date of death, the employee does not meet the age and/or
service requirements stated in paragraph 1, the spousal survivor annuity
is computed under the regular formula described in section 70A2.1-1B.
Thrift Savings Plan (TSP) Forms TSP 3 &17
If the employee participates in this program, and has not begun an annuity/distribution at time of death, the entire balance of TSP will pass directly to the surviving spouse 100% tax-free. The surviving spouse MUST BE THE NAMED PRIMARY BENEFICIARY at time of the employee’s death.
Federal Employees Group Life (F.E.G.L.I.) Standard Form 2823
If the Federal Employee is enrolled at the time of death, the payout is tax-free to the named beneficiary/beneficiaries.A Certified Death Certificate & Public Notice must accompany the claim form.
Annual Leave payment (Standard Form 1152)
A lump sum payment for annual leave will be disbursed to the beneficiary/ies of an employee that pre-deceases retirement. It is important that SF 1152 be on file currently as it requires the employees’ signature.