Q. I’m planning to retire from the U.S. Postal Service in October. I have no spouse who would be eligible for a survivor annuity. However, I do have a daughter. I would like for her to get my retirement pay. I worked hard for it and I don’t want it going back to the post office as unclaimed income.
A. While you cannot name your daughter to receive a survivor annuity, you could elect to provide her with what is known as an insurable interest annuity, but only if you are in good health when you retire. If you make that election, your annuity would be reduced by a percentage that would depend on the difference in your age and her age. Alternatively, you could name her as your beneficiary. Then, if you died before all the money you contributed to the retirement fund had been returned to you in monthly annuity payments, she would receive the balance in a lump sum. Just be aware that, on average, you’ll receive all the contributions you made within 18 months.