Annuity and survivor’s benefit calculation

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Q. I retired from the Department of Housing and Urban Development on Jan. 3, 2007, after working there for 33½ years plus 1½ years of credit for accumulated sick leave. I elected to provide full survivor’s benefits to my wife.

Can I determine what my annuity would have been had I not elected to provide full survivor’s benefits to my wife? I know this information was provided to me before I decided to retire, but I cannot locate those documents.

A. If you know — or can estimate — what your high-3 was on the date you retired, you can use the following formula to determine the reduction in your CSRS annuity that was needed to pay for the survivor annuity: Take 2.5 percent of the first $3,600 used as the base for a survivor annuity, plus 10 percent of any amount more than $3,600 used as a base.

For example, if your unreduced annuity was $60,000 and you elected a full survivor annuity, your survivor would receive 55 percent of that amount, or $33,000. The first $3,600 would cost you $90. The remaining $29,400 would cost you $2,940. Therefore, the total reduction in your annuity would have been $3,030.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

3 Comments

  1. I retired from the Army May 1, 1975. I elected the 55% SBP and was paid up prior to the decease of my wife on August 10, 2014. I plan to marry again on June 4, 2016. Will my new wife be eligible for SBP, immediately or is there was waiting period.

    Also, the new wife medical coverage is from her Ohio State employment and her medicare B is from a deceased husband. How would it effect her coverage with Medicare and Tricare for life.

    • Because this is a site for federal civilian employees and retirees, we are able to answer your questions.

    • We’re resending this answer because it contained the word “are” instead of “aren’t.” Here is the correct answer: Because this is a site for federal civilian employees and retirees, we aren’t able to answer your questions.

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