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Why Survivor Benefits Are an Essential Safety Net for Federal Employees and Their Loved Ones

Jeff Boettcher
March 11, 2025

Key Takeaways

Survivor benefits ensure financial stability for your loved ones in the event of your passing, providing essential peace of mind for federal employees and their families.
Understanding the structure and options of these benefits can help you make informed decisions to protect your family’s future.

What Are Survivor Benefits, and Why Do They Matter?

Survivor benefits are an integral part of federal retirement systems like the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS). These benefits provide ongoing financial support to your spouse, children, or other eligible survivors if you pass away. They serve as a vital safety net, offering financial security during challenging times.

As a federal employee, you contribute to this system throughout your career, ensuring your loved ones are cared for even in your absence. Survivor benefits are not just about financial support; they represent a thoughtful way to protect your family’s future.

Exploring Survivor Benefits Under FERS

The Federal Employees Retirement System (FERS) includes specific provisions for survivor benefits, which you can tailor based on your individual circumstances. These benefits come into play during your service and retirement, ensuring your family has access to financial resources.

Survivor Benefits While in Service

If you pass away while actively employed under FERS, your eligible survivors are entitled to certain benefits:

Basic Death Benefit: This is a one-time payment equal to 50% of your final annual pay or your High-3 average salary, whichever is greater, plus an additional flat amount that is adjusted annually for inflation.
Monthly Survivor Annuity: If you have worked for at least 18 months in federal service, your spouse may be eligible for a recurring monthly benefit.

Survivor Benefits During Retirement

Once you retire, you can elect to provide survivor benefits for your spouse or other dependents. This decision affects the amount of your retirement annuity. Here are the main options:

Full Survivor Benefit: Your spouse receives 50% of your unreduced annuity after your death. This option requires a reduction of 10% from your own annuity.
Partial Survivor Benefit: Your spouse receives 25% of your unreduced annuity, with a 5% reduction in your annuity.
No Survivor Benefit: You can choose this option if your spouse consents, but it’s important to consider the long-term financial impact for your family.

How CSRS Survivor Benefits Differ

For those still under the Civil Service Retirement System (CSRS), survivor benefits operate slightly differently. While CSRS does not include Social Security, it offers more generous annuities, which extend to eligible survivors.

Key Features of CSRS Survivor Benefits

Election Options: At retirement, you can choose a full survivor annuity (55% of your unreduced annuity) or a partial annuity (less than 55%).
No Survivor Benefit: Like FERS, you can opt out of providing survivor benefits, but only with spousal consent.
Eligibility for Children: Dependent children may qualify for a fixed monthly benefit, adjusted for cost-of-living increases.

Who Is Eligible for Survivor Benefits?

Survivor benefits are designed to provide financial assistance to specific individuals in your family. Here’s a breakdown of who qualifies:

Spouse

Your spouse is typically the primary beneficiary of survivor benefits. They must have been married to you for at least nine months at the time of your death, although exceptions apply for accidental deaths.

Children

Unmarried dependent children under age 18, or up to age 22 if they are full-time students, can receive survivor benefits. Disabled children may qualify regardless of age if the disability occurred before they turned 18.

Former Spouses

Former spouses may also be eligible if the divorce decree mandates a share of your survivor benefits. It’s crucial to ensure that your retirement records reflect any court orders.

How to Elect Survivor Benefits

The process of electing survivor benefits is a key step in retirement planning. It requires careful consideration and the proper documentation.

At Retirement

When retiring, you’ll make an election regarding survivor benefits. The Office of Personnel Management (OPM) requires you to complete specific forms to designate beneficiaries and select your annuity option.

During Employment

If you’re still in service, it’s essential to regularly review your Designation of Beneficiary forms. Life events like marriage, divorce, or the birth of a child may require updates.

Open Season Changes

Although rare, open seasons for survivor benefits do occur, allowing you to adjust your elections. This is an excellent opportunity to revisit your choices if your circumstances have changed.

The Role of Social Security in Survivor Benefits

FERS employees contribute to Social Security, and these benefits can complement survivor annuities. Social Security survivor benefits provide additional financial support for your family. Your spouse or children may qualify for these benefits if you’ve paid Social Security taxes for a sufficient period.

Key Points About Social Security Survivor Benefits

Eligibility for Spouses: Your spouse may receive survivor benefits starting at age 60, or age 50 if disabled.
Benefits for Children: Unmarried children under 18, or under 19 if in high school, are eligible.
Coordination With FERS Annuity: Survivor benefits from Social Security can be received alongside FERS survivor annuities, enhancing financial stability.

Costs Associated With Survivor Benefits

Survivor benefits require trade-offs. Electing these benefits reduces your own annuity to ensure your loved ones receive support after your passing. Understanding the costs involved can help you make informed decisions.

Annuity Reduction

Full Survivor Benefit: Reduces your annuity by 10%.
Partial Survivor Benefit: Reduces your annuity by 5%.

Life Insurance as a Supplement

Many federal employees use life insurance policies, such as the Federal Employees’ Group Life Insurance (FEGLI), to supplement survivor benefits. Life insurance provides a lump sum payment, which can be especially helpful for covering immediate expenses.

Avoiding Common Mistakes With Survivor Benefits

Planning for survivor benefits is critical, but mistakes can happen. Avoid these common pitfalls:

Neglecting to Update Beneficiaries: Life changes like marriage, divorce, or the birth of a child require updates to your Designation of Beneficiary forms.
Failing to Communicate: Ensure your spouse understands the survivor benefits election process and the financial implications.
Overlooking Court Orders: Divorce decrees may require specific survivor benefit elections. Failing to comply can result in legal and financial complications.

Planning for Survivor Benefits in 2025

The federal benefits landscape evolves, and staying informed is essential. As of 2025, federal employees should take advantage of the following:

Enhanced Technology: Use online tools provided by OPM to estimate survivor benefits and annuity reductions.
Annual Reviews: Regularly review your benefits elections and financial plans to ensure they align with your family’s needs.
Professional Guidance: Consult with a financial advisor familiar with federal benefits to optimize your plan.

Why Survivor Benefits Are Worth the Investment

Survivor benefits offer peace of mind, ensuring your family’s financial well-being in your absence. While they require some sacrifice from your retirement annuity, the security they provide is invaluable. By carefully planning and electing appropriate options, you can protect your loved ones from financial hardship.

A Safety Net That Lasts a Lifetime

Survivor benefits stand as a testament to your dedication to your family’s future. They’re not just a financial tool but a reflection of your foresight and care. With thoughtful planning, these benefits ensure that your loved ones have the resources they need to thrive, even in the most challenging times.

Jeff Boettcher

For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. "each time I work with my clients, I'm building their future, and there are few things that are more important to a family than a stable financial foundation."

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, "Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income." Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an 'aging' athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.