How Soon Can A Surviving Spouse Collect Civil Service Retirement

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Information nigh Spousal Survivor Benefits Upon the Decease of a CSRS/CSRS-Beginning Annuitant

Edward A. Zurndorfer–

For annuitants who were covered past the Civil Service Retirement Organisation (CSRS) including CSRS Kickoff annuitants, at that place are surviving annuity benefits that may be payable to a surviving spouse, children, an private with an insurable interest or a former spouse. This column discusses CSRS/CSRS Offset survivor annuity benefits payable to a surviving spouse.

Definition of a CSRS/CSRS Showtime Annuitant

It is important to define what an annuitant is and what an annuitant is not. A CSRS/CSRS Offset-covered employee is considered to be a CSRS/CSRS Offset annuitant if he or she dies on or after the date on which an annuity begins to accumulate and: (1) Meets all requirements and has applied for CSRS retirement and (2) has separated from his or her bureau employee rolls. The post-obit examples illustrate:

Instance one. Jason, age 62, was a CSRS-covered employee and retired from federal service on March 2, 2019. Jason died all of a sudden on March 20, 2019. Since Jason met all requirements for retirement and formally practical for retirement (his annuity started to accrue on March 3, 2019), Jason was considered an annuitant when he died on March twenty, 2019.

Case ii. Wendy, age 62, was a CSRS-covered employee and intended to retire from federal service on March 2, 2019. Wendy died suddenly on Feb. xx, 2019. Since Wendy had not separated from federal service as of the day of her death, she was not considered a CSRS annuitant.

Spousal Survivor CSRS Annuity Requirements

A spousal survivor annuity is payable to the spouse of a deceased CSRS annuitant only if the annuitant elected a reduced annuity to provide the survivor benefit. To qualify every bit a surviving spouse of a deceased annuitant the private must be married to the annuitant at the fourth dimension of the annuitant's death and must meet ane of the post-obit requirements: (1) The surviving spouse and the annuitant must have been married for at least 9 months while the annuitant was in federal service; (2) a child was built-in of the marriage. For this purpose, a child includes: (a) A child born posthumously to the deceased annuitant and spouse; (b) a child born to the deceased annuitant and spouse before they were married; and (c) a child of a prior matrimony between the deceased annuitant and spouse. Note that an adopted child is not considered a child born of the wedlock; or (three) the expiry of the annuitant was adventitious. For the expiry to be considered accidental, the decease must exist from a cause that is considered adventitious under the FEGLI program.

Effect of a Erstwhile Spouse'southward Eligibility for the Spousal Survivor Annuity

A court gild awarding a onetime spouse a survivor annuity prevents OPM from paying the surviving spouse the portion of the survivor annuity awarded past the courtroom order. The surviving spouse (if otherwise eligible) remains eligible for the consummate survivor annuity if and when the one-time spouse loses eligibility.

Note that even when no benefits are currently payable to the surviving spouse because of the court-ordered entitlement of the former spouse, the surviving spouse is entitled to FEHB coverage. This is assuming that the deceased annuitant-spouse had self plus one or self and family unit coverage. The following example illustrates:

Charles elected a full survivor annuity for his wife Anne when he retired in 2000. In 2005 they divorced, and a court social club awarded Anne the total CSRS survivor annuity. In 2010 Charles married Kim and elected a full survivor annuity benefit for her. Charles died in 2017. Upon his expiry, the full survivor annuity benefit was paid to Anne because of the court order. Kim could retain FEHB coverage by paying OPM directly for the FEHB health insurance.

Amount of the CSRS Spousal Survivor Annuity

The maximum possible survivor annuity is 55 per centum of the CSRS annuitant'due south annuity before information technology is reduced by the cost of the survivor benefit (the unreduced annuity). This volition by and large exist virtually threescore percent of the annuitant's electric current gross annuity. The CSRS survivor annuity can be less than 55 percent if the annuitant elected to provide less than the maximum survivor annuity benefit and the spouse gave his or her written and notarized consent.

Price-of-Living Adjustments (COLAs)

Every COLA given an annuitant increases the survivor annuity past the same per centum. Upon the death of the annuitant, the initial annuity paid to the survivor volition include all the previous COLAs that had been granted the annuitant. The survivor annuity will also be increased by all future COLAs.

Survivor Annuity to a Spouse Upon the Death of a CSRS Offset Annuitant

A survivor annuity payable to the spouse of a deceased CSRS Offset annuitant is computed in the aforementioned mode as a survivor annuity payable to the spouse of a deceased annuitant with full CSRS coverage.

However, the amount of a survivor annuity payable for the surviving spouse of a deceased CSRS First annuitant may be reduced if the surviving spouse is eligible for Social Security survivor benefits based on the deceased's Federal service covered by Social Security. If a surviving spouse is not entitled to a Social Security survivor benefit, and so the surviving spouse is paid the full CSRS survivor annuity benefit.

Social Security Survivor Benefits Payable

If Social Security survivor benefits (based on the deceased annuitant's Federal service under Social Security) are payable:

i. The surviving spouse receives total CSRS survivor benefits until he or she becomes entitled to Social Security survivor benefits. This usually occurs at age 60. However, such benefits may begin before age 60 if the surviving spouse is disabled or has a minor child in care.

2. When the spouse becomes entitled to Social Security survivor benefits, the CSRS survivor annuity is reduced (beginning) past the corporeality of the survivor's Social Security benefit owing to the menses the deceased annuitant was under CSRS Offset.

The reduction (start) of a CSRS survivor annuity ceases on the date the surviving spouse loses eligibility for Social Security survivor benefits due to whatsoever ane of the following reasons: (one) The surviving spouse becomes eligible for a Social Security do good based on his or her ain earnings under Social Security and the benefit exceeds the spousal Social Security survivor do good; (2) the surviving spouse remarries before age 60; or (3) the Social Security (mother or father) benefit stops considering a minor child reaches age xvi and the surviving spouse is under historic period 60. Annotation that entitlement to a Social Security survivor do good is not considered terminated when the benefit payable is reduced to zero due to the application of the Social Security "earnings" exam. In one case the offset ceases, the surviving spouse receives the full CSRS spousal survivor annuity.

Duration of a CSRS/CSRS Offset Annuity

The CSRS or CSRS Offset survivor annuity payable to a spouse begins on the twenty-four hours after the death of the annuitant and ends on the final day of the calendar month preceding the month in which the survivor annuitant dies or remarries before age 55, if the marriage to the deceased CSRS or CSRS annuitant lasted for fewer than 30 years, as the following instance illustrates:

Jessica, a CSRS survivor annuitant, died on June xv, 2019. Her CSRS survivor annuity ended on May 31, 2019.

Edward A. Zurndorfer is a Certified Fiscal Planner, Chartered Life Underwriter, Chartered Financial Consultant, Chartered Federal Employee Benefits Consultant, Certified Employees Benefits Specialist and IRS Enrolled Amanuensis in Silver Spring, MD. Revenue enhancement planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, and EZ Federal Benefits Seminars, located at 833 Bromley Street – Suite A, Silvery Spring, Md 20902-3019 and telephone number 301-681-1652. Raymond James is not affiliated with and does non endorse the opinions or services of Edward A. Zurndorfer or EZ Accounting and Fiscal Services. The information has been obtained from sources considered to be reliable, but we do non guarantee that the foregoing material is accurate or complete. While the employees of Serving Those Who Serve are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to return communication on tax or legal matters. You should discuss tax or legal matters with the appropriate professional person.