Divorce for Federal Employees: What to Do

March 15, 2018

Federal benefits can be affected in a significant way by major events in life such as the birth of a child or marriage. In fact, instances of divorce can lead to a lot of complications when it comes to claiming federal benefits. The following are some useful tips for divorced or separated federal employees.

FEHB Benefits for Separated Federal Employees

Your spouse will still be eligible for coverage if you are in the process of annulling your marriage or when you are not legally separated. It is important to remember that this only happens when your FEHB enrollment includes the self and family option or the self-plus-one option.

Former Spouse Benefits after Divorce

The FEHB coverage for a former spouse ends when the divorce process has been finalized. In fact, it ends the same day at midnight. In this case, even a court order cannot stop this law from being implemented. However, the spouse equity act allows your former spouse to continue funding the coverage in his or her private capacity after your divorce has been finalized. A former spouse can convert to an individual policy or choose temporary continuation.

Your FEHB Benefits

After your marriage has been annulled, the FEHB plan has the self and family option that allows you to replace your spouse with other eligible family members. However, you can change your FEHB plan to the self-plus-one option in instances where there is only one family member that is eligible for coverage.

Also, one can change to the self-only option when there is no other eligible person for coverage under your plan. You must complete the Standard Form 2809 to make any changes when it comes to coverage.

FEGLI Designation of Beneficiary

Federal employees designate a beneficiary when they sign up for the Federal Employees’ Group Life Insurance. The designated person receives the FEGLI proceeds when you die, and most married people designate their spouses.

However, a married person that ends up getting a divorce can change the beneficiary. The fact that you are no longer married means that you have to make the necessary changes by completing a Standard Form 2823 that is available at www.opm.gov/forms.

Survivor Annuity

At the end of a divorce process, one is no longer required to provide a survivor annuity. However, they must report divorce or annulment to their respective federal agency for this to happen. Retired federal workers must inform OPM when they get a divorce.