As a federal employee, you have access to some of the most generous and comprehensive retirement benefits in the country. You have a pension, social security, and a thrift savings plan (TSP) that can provide you with a steady and secure income for the rest of your life. You also have health insurance, life insurance, and other benefits that can protect you and your family from unexpected expenses and risks.

But have you thought about what will happen to your benefits when you die? Have you considered how to provide for your spouse, children, or other dependents who may rely on your income and benefits? Have you prepared the necessary documents and forms to ensure that your benefits are transferred to your beneficiaries smoothly and quickly?

If you answered no to any of these questions, then you need to start planning your survivor benefits. Survivor benefits are the benefits that are paid to your survivors or beneficiaries after your death. Survivor benefits can help your loved ones maintain their financial security and well-being, and honor your legacy and wishes.

Let’s break down the basics of survivor benefits for federal employees without diving too deep into complicated terms.

Types of Survivor Benefits for Federal Employees

There are four types of survivor benefits for your loved ones, depending on if you’re an active employee or a retiree, and if you’re under FERS or CSRS:

1. Basic Employee Death Benefit (BEDB):
   • If you kick the bucket while working under FERS, your spouse or former spouse gets a one-time lump sum. It’s 50% of your final annual salary plus $15,000 (adjusted for inflation). If no spouse, the BEDB goes to your children or other eligible dependents.
2. Survivor Annuity:
   • If you die as a retiree or after at least 10 years of service under FERS or CSRS, your spouse or former spouse gets a monthly payment. It’s 50% of your full pension if you’re a retiree, or 50% of your expected pension if you’re still on the job. This monthly support keeps going until your spouse remarries before turning 55.
3. Social Security Survivor Benefit:
   • If you pass away as a retiree or while eligible for social security benefits, your spouse, kids, or other dependents might get a monthly payment based on your earnings history. The support sticks around for the lifetime of your spouse (if 60 or older), or until they remarry. For kids, it lasts until they’re 18 (or 19 if they’re still in school).
4. TSP Survivor Benefit:
   • If you’re a retiree or still on the job, your beneficiary gets a payment from your TSP account. It could be a lump sum, monthly payments, a life annuity, or a mix of these. The amount depends on your account balance and withdrawal choices. This support keeps coming until the account is empty or your beneficiary passes away.

Eligibility and Applying for Survivor Benefits

For your family to qualify, they must meet specific criteria and submit documents and forms to the right places. Here’s a quick rundown:

• BEDB: Spouse or former spouse must’ve been married to you for at least nine months, have a child with you, or have a court order for the BEDB. They apply with a death certificate, marriage certificate, court order (if needed), and SF 3104 form at the Office of Personnel Management (OPM).
• Survivor Annuity: Same eligibility as BEDB. They use the same documents and forms, too.
• Social Security Survivor Benefit: Your spouse, kids, or other dependents must meet age and relationship criteria set by the Social Security Administration (SSA). They apply with death certificates, birth certificates, marriage certificates (if needed), and SSA-8 form at the SSA.
• TSP Survivor Benefit: Your chosen beneficiary, or the person decided by order of precedence, can apply with a death certificate, identification documents, and TSP-17 form at the TSP.

Amount and Duration of Survivor Benefits

How much and for how long they get these benefits depends on a few factors, like your salary, pension, service years, age, and your beneficiary’s details. Here’s a quick overview:

• BEDB: It’s 50% of your final salary plus $15,000, paid as a lump sum to your spouse, former spouse, or dependents. One-time deal.
• Survivor Annuity: 50% of your full or projected pension, paid monthly to your spouse until they remarry before 55.
• Social Security Survivor Benefit: Based on your earnings history. Your family gets between 150% and 180% of your basic benefit amount, paid monthly for life (if spouse is at least 60), or until they remarry. Kids get support until 18 (or 19 if still in school).
• TSP Survivor Benefit: Depends on your account balance and withdrawal choices. It lasts until the account is empty or your beneficiary passes away.

Tax and Inflation Implications

Here’s a quick overview of how taxes and inflation play out for each benefit:

• BEDB: Federal income tax only, no state or local tax. Not adjusted for inflation.
• Survivor Annuity: Federal, state, and local income tax. Adjusted for inflation through COLA.
• Social Security Survivor Benefit: Federal income tax (and state tax in some states). Adjusted for inflation through COLA.
• TSP Survivor Benefit: Federal, state, and local income tax. Not adjusted for inflation; depends on investment performance.

Conclusion

Survivor benefits are an important part of your federal retirement benefits, as they can provide financial security and well-being for your loved ones after your death. As a federal employee, you need to understand the basics of survivor benefits, and how they can affect your retirement planning and estate planning. You need to create and update the necessary documents and forms for your survivor benefits, and make sure that they are consistent with your wishes and goals.