Spousal Survivor Benefits Upon the Death of a CSRS/CSRS Offset Annuitant

A recent column discussed the spousal benefits for a surviving spouse of a deceased FERS employee. This column is the first of two columns discussing the spousal benefits for the surviving spouse of a deceased federal retiree, and presents the spousal benefits paid to the surviving spouse of a deceased CSRS and CSRS Offset annuitant.

Among the topics presented:

(1) Eligibility requirements to receive a spousal CSRS survivor annuity;

(2) The amount payable as a survivor annuity to the spouse of a deceased CSRS or CSRS Offset annuitant;

(3) The reduction to a survivor annuity based on the CSRS Offset federal service of a deceased CSRS Offset annuitant;

(4) The duration of the survivor annuity; (5) the lump-sum benefits payable including the lump-sum credit and accrued annuity; and

(5) The procedures the surviving spouse must follow to initiate payment of a survivor annuity benefit.

Definition of a CSRS/CSRS Offset Annuitant

An individual is considered a CSRS/CSRS Offset annuitant if:

(1) He or she dies on or after the date on which an annuity began to accrue; and

(2) As a former CSRS or CSRS Offset employee, he or she met all the requirements for an immediate retirement, applied for retirement and separated from his or her agency payroll.

Note that if the former CSRS or CSRS Offset employee did not file an application for an immediate retirement or was not entitled to an immediate annuity, then the individual is a separated employee and not an annuitant. Also, if an individual dies after having applied for a disability retirement but before final separation from the agency, the individual is considered an employee.

Eligibility Requirements for a Spousal CSRS Survivor Annuity

A spousal CSRS survivor annuity is payable to the surviving spouse of a deceased CSRS annuitant only if the annuitant elected a reduced CSRS annuity to provide the CSRS spousal survivor annuity.

To qualify as a surviving spouse of a deceased annuitant, the surviving spouse must have been married to the annuitant at the time of the annuitant’s death and meet one of the following requirements:

1.The surviving spouse and the annuitant must have been married for at least 9 months. In case the surviving spouse and the annuitant were married several times, one can count the aggregate time of all marriages between the spouse and the deceased annuitant, or

2. A child was born from the marriage. For this purpose, a child includes: (a) A child born posthumously to the deceased annuitant and spouse; (b) A child born to the deceased annuitant and spouse before they were married; and (c) a child of a prior marriage between the deceased annuitant and spouse. (Note that an adopted child is not a child born of the marriage), or

3. The death of the annuitant was accidental. In general, for a death to be considered accidental, the death must be from a cause that is considered as accidental under the rules of the Federal Employees Group Life Insurance (FEGLI) Program.

More Than One CSRS Survivor Annuity

A surviving spouse may receive only one CSRS survivor annuity based on the service of one former CSRS or CSRS Offset employee.

A surviving spouse may receive more than one CSRS survivor annuity based on the service of more than one former CSRS or CSRS Offset employee. However, a surviving spouse may not receive survivor annuities based on the service of more than one CSRS or CSRS Offset employee if any of the survivor annuities: (1) Was based on a marriage that occurred after the CSRS -covered employee retired from federal service, or (2) Has been reinstated after the surviving spouse remarried before age 55. The following example illustrates:

Example 1. Allan marries Marlene, a CSRS-covered employee. Marlene died three years after they were married, while Marlene was in federal service. Allan received a CSRS survivor annuity starting the month after Marlene died. After Allan reached his 55th birthday, he married Jennifer, also a CSRS-covered employee. Three years after they were married, Jennifer retires from federal service, and elected to give Allan a CSRS survivor annuity. Jennifer died five years after she retired from federal service and Allan received a CSRS survivor annuity based on Jennifer’s federal service. He still continues to receive his other CSRS survivor annuity check based on Marlene’s federal service.

Note that had Allan been younger than age 55 when he married Jennifer, he would have lost his CSRS survivor annuity based on Marlene’s federal service. Similarly, if Marlene or Jennifer were CSRS annuitants rather than employees at the time of their marriages to Allan, then Allan would have to choose which CSRS survivor annuity to elect. He is not eligible in that situation (marrying a CSRS annuitant) to receive both survivor annuities.

Effect of a Former Spouse’s Eligibility for the CSRS Spousal Survivor Annuity

A court order awarding a former spouse a CSRS survivor annuity prevents OPM from paying the surviving spouse the portion of the survivor annuity awarded by the court order. However, the surviving spouse, if otherwise eligible, remains eligible for the complete survivor annuity if and when the former spouse loses eligibility or dies.

Even when no benefits are currently payable to the surviving spouse because of the court-ordered entitlement of the former spouse, the surviving spouse remains entitled to Federal Employees Health Benefits (FEHB) program health insurance and the Federal Employees Dental and Vision Insurance Program (FEDVIP) coverage. With respect to FEHB program coverage, the annuitant had to be enrolled as self and family or self plus one enrollment at the time of his or her death covering the surviving spouse. The following example illustrates:

Example 2. Frank, a CSRS employee, elected to give his wife Martha a full survivor annuity when he retired from federal service in 2002. In 2005 they divorced, and a court order awarded Martha the full survivor annuity. In 2008, Frank married Susan and elected a full survivor annuity for her. In 2012 Frank died. Upon his death, the CSRS survivor annuity was paid to Martha because of the court order. Susan could retain FEHB health insurance by paying OPM directly for the insurance premiums. In 2018, Martha died, and Susan started to receive the full CSRS survivor annuity. At that time, OPM deducted the FEHB health insurance premiums from the CSRS survivor annuity monthly payment.

Amount of the CSRS Survivor Annuity

The maximum possible survivor annuity is 55 percent of CSRS annuitant’s gross annuity before it is reduced by the cost of the survivor benefit, the unreduced annuity. This will generally be about 60 percent of the annuitant’s current gross annuity. The survivor annuity can be less than 55 percent if the annuitant elected (with written and notarized consent of the spouse) to provide less than the maximum survivor annuity. The following example illustrates:

Example 3. Chris retires from federal service at age 60 with a starting CSRS spousal annuity of $100,000. Chris elects to give his wife Carol the maximum CSRS annuity benefit of 55 percent. The following summarizes the cost of the survivor benefit and what Chris received during the first year of retirement.

$100,000 CSRS initial gross annuity benefit
Less: (9,730) Cost of maximum survivor annuity benefit
$90,270 Net annuity (taxable)

Note that if Chis were to die during the first year of his retirement, with no cost-of-living adjustment having been applied, then Carol’s CSRS starting survivor annuity would be equal to:

55 percent of $100,000 = $55,000

Cost-of-Living Adjustments

Every cost-of-living adjustment (COLA) applied to a CSRS annuity increases the survivor annuity by the same percentage. Upon the death of the annuitant, the initial annuity paid to the survivor will include all the previous COLAs that had been granted the annuitant. The survivor annuity will also be increased by all future COLAs. The following examples illustrate:

Example 4. Same information as in example 3. Ten years after Chris had retired from federal service, Chris’ original $100,000 CSRS gross annuity has increased through COLAs to $110,000. The following summarizes the cost of the surviving benefit for Carol and the net annuity that Chris received during the 10th year of retirement.

$110,000 CSRS gross annuity benefit after 10 years of COLAs
Less: (9,730) * Cost of maximum survivor annuity benefit
$100,270 Net annuity (taxable)

*Cost of spousal survivor annuity benefit does not increase as COLAs are applied to gross annuity

Note that if Chis were to die during the 10th year of his retirement, then Carol would receive a CSRS survivor annuity benefit of:

55 percent of $110,000 = $60,500

Example 5. During the five years after Chris died during his 10th year of retirement, Carol has had COLAs applied to her starting survivor annuity of $60,500. As of the start of the fifth year, the survivor annuity has increased through COLAs from $60,500 to $68,634.

Survivor Annuity to a Spouse-Deceased CSRS Offset Annuitant

A survivor annuity payable to the spouse of a deceased CSRS Offset annuitant is computed in the same manner as a survivor annuity payable to the spouse of a deceased annuitant with full CSRS coverage. However, the amount of the survivor annuity payable to the spouse of a deceased CSRS Offset annuitant may be reduced if the surviving spouse is eligible for Social Security survivor benefits based on the deceased’s federal service covered by Social Security. A surviving spouse who is not entitled to Social Security spousal (widow/widower) surviving benefits is paid the full CSRS survivor benefit. The following example illustrates.

Example 6. Pamela is a CSRS Offset annuitant. Her husband Michael never worked in federal service. His monthly Social Security retirement benefit is more than the amount of Pamela’s monthly Social Security monthly benefit that she earned as a CSRS Offset employee. If Pamela were to predecease Michael, then Michael would get a full CSRS survivor annuity with no offset (reduction).

If Social Security survivor benefits based on the deceased CSRS Offset annuitant’s federal service under Social Security are payable:

1. The surviving spouse receives a full CSRS survivor annuity until he or she becomes entitled to Social Security survivor (widow/widower) benefits. This normally is age 60. However, such benefits may begin before age 60 if the surviving spouse is disabled or has a child younger than age 16 in his or her care.

2. When a surviving spouse becomes entitled to Social Security survivor benefits, the CSRS survivor annuity is reduced (offset) by the amount of the surviving spouse’s Social Security surviving spouse’s Social Security survivor (widow/widower) benefit attributable to the period the deceased CSRS Offset annuitant was under CSRS Offset as an employee.

Beginning Date of the Offset (Reduction) for the CSRS Offset Spousal Survivor Annuity

The reduction (offset) begins, or is restated, on the first day of the month during which the survivor annuitant is: (1) Entitled to a survivor annuity under CSRS Offset, and (2) Entitled, or on proper application, would be entitled to Social Security spousal survivor benefits.

Ending Date of the Offset (Reduction) for the CSRS Offset Spousal Survivor Annuity

The offset of a CSRS survivor annuity stops on the date the surviving spouse loses eligibility for Social Security survivor benefits due to any of the following reasons:

• The surviving spouse becomes eligible for a Social Security retirement benefit based on his or her own earnings under Social Security and that benefit exceeds the Social Security survivor spousal (widow/widower) benefit

• The surviving spouse remarries before age 60, or

• The Social Security spousal survivor benefit stops because a minor child reaches age 16 and the surviving spouse is under age 60.

Note that entitlement to a Social Security spousal survivor (widow/widower) benefit is not considered terminated when the benefit payable is reduced to zero due to application of the Social Security “earning test”.

Duration of CSRS Survivor Annuity

The CSRS survivor annuity payable to the surviving spouse of a deceased CSRS annuitant begins on the day after the death of the CSRS annuitant and ends on the last day of the month preceding the month in which the survivor annuitant: (1) Dies, or (2) Remarries before age 55, unless the marriage is between the survivor annuitant and the deceased annuitant has lasted at least 30 years.

The following example illustrates:

Example 7. Louise, a CSRS survivor annuitant, died on March 15, 2021. Her CSRS survivor annuity check ended on February 28, 2021.

Restoration of CSRS Survivor Annuity

A CSRS survivor annuity that is terminated because of remarriage before age 55 may be restored if:

• the remarriage is later terminated by death, annulment, or divorce, and

• if the spouse pays back any lump—sum benefit that was paid upon termination of the annuity.

If the surviving spouse was enrolled in a FEHB program health insurance plan when the CSRS survivor annuity terminated, he or she may reenroll in an FEHB program health plan when the survivor annuity is restored.

Lump-Sum Credit

The lump-sum credit consists of the unrefunded amount of one or more of the following:

1. Retirement deductions withheld from the employee’s pay
2. Redeposits of refunds previously paid
3. Deposits for civilian service
4. Deposits for post-1956 military service, or
5. In the case of an employee or former employee who dies with less than five years of creditable service, interest to the date of separation.

If no CSRS survivor annuity is payable upon the CSRS annuitant’s death, then any remaining portion of the lump-sum credit that has not been paid to the annuitant as any annuity is payable to individuals entitled under the order of precedence.

If there is a CSRS survivor annuity payable on the death of an annuitant, then the individuals entitled under the order of precedence may be paid a lump-sum payment of the following items, if not paid to the annuitant before his or her death:

• Retirement deductions – generally 7 percent of an employee’s salary – withheld from the annuitant’s pay after the annuitant had reached 41 years and 11 months of service. This assumes that deceased annuitant as an employee did not elect to treat those deductions as voluntary contributions toward the purchase of an additional annuity through the Voluntary Contribution Program.

• Partial redeposits for refunded retirement deductions paid for a period of service that ended after Feb. 28, 1991.

• Partial deposits for civilian service performed after Sept. 30, 1982.

• Partial deposits for post-1956 military service.

• Annuity accrued and unpaid.

An individual who is eligible for a CSRS survivor annuity may not be paid a lump-sum payment of:

• Partial redeposits for refunded deductions covering a period of service that ended before March 1, 1991

• Partial or completed deposits for nondeduction civilian service performed before Oct. 1, 1982, unless the service covered by the deposit is not creditable under CSRS

• Completed deposits for nondeduction civilian service performed after Sept. 30, 1982, unless the service covered by the deposit is not creditable under CSRS, or

• Completed deposits for post-1956 military service unless the service covered by the deposit is not creditable under CSRS.

Finally, a lump-sum payment is subject to any properly certified timely request for recovering of a valid debt due the United States.

Application Process

Upon the death of a CSRS or CSRS Offset annuitant, the surviving spouse should notify OPM’s retirement office as soon as possible. To do so, the surviving spouse should go to the OPM Retirement Information and Services reporting page here.  The following is what the CSRS survivor annuitant upon linking to that OPM site:

Once on the reporting page, the surviving spouse will need to provide the annuitant’s information and information about the surviving spouse, and surviving children if the children are eligible for Children Survivor Benefits. Once the completed report is submitted online to OPM by the surviving spouse, OPM will send a confirmation email that they received the surviving spouse’s report of the annuitant’s death. OPM’s Retirement Office usually responds within three to five business days.

A spouse has 30 years after the annuitant’s death in which to file an application for death benefits.