This type of annuity provides payments at an unreduced rate during the life of the retiring employee. It does not provide survivor benefits. (See 564.24 for current spouse’s consent in the case of a married employee.)
This type of annuity provides a retiring employee with annuity payments at a reduced rate and, upon the annuitant’s death, provides the current and/or former spouse(s) with survivor annuity payments. An annuity with full survivor benefits to the current spouse is automatic for a retiring employee who is married at retirement and who does not make an election for an annuity without survivor benefits.
To be eligible for a survivor annuity after the death of an annuitant, the current spouse must have been married to the annuitant for at least 9 months or a parent of the annuitant’s child. This requirement does not apply if the annuitant’s death is accidental.
To elect a former spouse annuity, the retiring employee must have been married to the former spouse for at least 9 months.
The total survivor annuity(ies) that can be provided to a current spouse and/or one or more former spouses cannot exceed 55 percent of the retiring employee’s unreduced annuity.
The reduction in the retiring employee’s annuity is 2 1/2 percent of any amount up to $3,600, specified as the base for the survivor benefit, plus 10 percent of any amount over $3,600 so specified.
The survivor annuity(ies) begins on the day after the annuitant’s death and ends on the last day of the month preceding the one in which the designated survivor remarries before age 55 or dies. (See 567.16 for eligibility for continuance of annuity for a designated survivor upon remarriage under age 55.)
OPM must honor a court order/divorce decree that gives (awards or requires a retiring employee to provide) a survivor annuity to a former spouse. A court–ordered former spouse annuity takes precedence over an election to provide a survivor annuity to a current spouse. A retiring employee’s annuity will be automatically reduced by OPM to provide a court–ordered former spouse annuity.
If a former spouse is entitled to a court–ordered survivor annuity, the retiring employee must make an election concerning a survivor annuity for the current spouse as if there were no court–ordered former spouse annuity. (See 564.24 for current spouse’s consent if less than a full survivor annuity is elected.)
A retiring employee can protect a current spouse’s entitlement to a survivor annuity by electing a full or partial survivor annuity for the current spouse at retirement. This is accomplished when:
- The court order gives the former spouse the maximum survivor annuity; in which case the current spouse would not be entitled to a survivor annuity, based on the amount elected, until the former spouse loses entitlement (because of remarriage before age 55 or death); and
- The court order gives the former spouse less than the maximum survivor annuity; in which case the current spouse would be entitled to a partial survivor annuity up to the amount elected, but not exceeding the difference between the court–ordered survivor annuity and 55 percent of the retiring employee’s unreduced annuity. If the former spouse loses entitlement (because of remarriage before age 55 or death), the current spouse’s annuity would be increased, if necessary, to the amount elected.
This type of annuity provides payments at a reduced rate during the life of the retiring employee. Upon the retiring employee’s death, it provides a survivor annuity payable to the person designated. The person designated must have an insurable interest in the retiring employee. An insurable interest is presumed to exist if the person designated has a reasonable expectancy of pecuniary benefit in the continuance of the life of the retiring employee.
Any retiring employee who is not retiring on disability and who can prove good health can elect a reduced annuity to provide a survivor annuity for a person having an insurable interest in the retiring employee.
A retiring employee’s annuity is reduced by 10 percent plus an additional 5 percent for each 5 years the person designated is younger than the retiring employee. The maximum reduction is 40 percent, except when a former spouse is entitled to a court–ordered annuity and the retiring employee elects an insurable interest annuity for the current spouse.
Married employees who elect less than a full survivor annuity for their current spouse, regardless of the type of annuity elected, must obtain their current spouse’s consent on OPM Form 1431, Spouse’s Consent To Survivor Election. The current spouse’s consent is required even if a former spouse will be awarded a survivor annuity by a court order. (See 564.222.) A waiver of the spousal consent requirement may be granted by OPM under certain conditions (e.g., whereabouts of the current spouse cannot be determined or there are exceptional circumstances regarding the current spouse which warrant such a waiver).
Regardless of the type of annuity elected at the time of retirement, a surviving child of the deceased annuitant who (a) is under the age of 18 and single, (b) is over age 18 and incapable of self–support, or (c) is a full–time student under the age of 22, is entitled by law to a survivor annuity (see 567.13).
The type of annuity desired by the retiring employee is indicated on the application for retirement (SF 2801) at the time of retirement.
Annuitants have 18 months from their annuity commencing date to change their decision to provide a survivor annuity (court–ordered former spouse annuities are not subject to this reelection) or to elect a higher survivor annuity. In either case, a deposit will be required for such an election. The deposit consists of the difference between the rate of the annuity originally elected and the rate of the annuity elected during the 18–month period, plus $245 per each thousand–dollar change in the designated survivor’s base. In addition, the deposit will be subject to interest charged at a rate equal to the overall yield to the retirement fund during the preceding fiscal year.
If an employee who is married at the time of retirement elects a survivor benefit for the current spouse and the marriage is terminated before the annuitant dies, the reduction in annuity is eliminated unless the annuitant elects to continue it.
If a reduction in annuity was eliminated because of termination of marriage and the annuitant remarries, a survivor annuity may be elected for the new (current) spouse. The annuity is reduced by the same percentage reduction in effect at retirement. The new spouse is eligible for the survivor benefits provided: (a) the marriage was in effect for at least 9 months before the annuitant’s death, or (b) the new spouse is the parent of a child born of the marriage.
The following provisions apply:
- Change From Unreduced Annuity. An employee who is not married at the time of retirement, and who elects an unreduced annuity without survivor benefits, may, if the employee marries after retirement, change election to a reduced annuity with survivor benefits to the current spouse. The annuitant submits a signed, written request for the change to OPM no later than 2 years after the marriage. Once the change in election is accepted by OPM, it cannot be changed again.
- Change From Person Having Insurable Interest. An election of a reduced annuity with survivor benefits to a designated person having an insurable interest may be changed to a reduced annuity with survivor benefits to the current spouse if the employee marries after retirement. A written request for the change is submitted to OPM no later than 1 year after the marriage. Once the change in election is accepted by the OPM, it cannot be changed again.
