Q. My 93-year-old father has been retired from the federal government since he was 62. My mother passed away 22 years ago. He wants to marry a very young woman so she can get his pension. I can’t imagine the government would allow this. He is adamant that she will receive his pension if he marries her.
A. Yes, he can elect a survivor annuity for a new wife. However, he needs to keep two things in mind. First, she wouldn’t be entitled to anything unless the marriage lasted for nine months before he died.
Second, the cost of such an election might be prohibitive. To pay for it, there would be two reductions in his annuity. One would be the standard deduction to provide the survivor benefit — a 10 percent reduction if he wanted to provide a full survivor annuity. The other would be a permanent actuarial reduction to pay the survivor benefit deposit. The deposit equals the difference between the new annuity rate and the annuity paid to him for each month since he retired, plus 6 percent interest. The reduction would be determined by the amount he owes divided by his age on the date his annuity is reduced to provide the survivor benefit. We’re talking big money here.