Remarried? Your FERS Survivor Annuity Could Leave Your Current Spouse With

A FERS survivor annuity is designed to provide continuing income to a spouse after a federal retiree dies. But if you were previously married and your divorce resulted in a court-ordered survivor benefit for your former spouse, your current spouse’s protection may not be what you assume.

For federal employees who have remarried, the details of the divorce order can matter just as much as the survivor election made at retirement.

The 50% Limit Matters

Under FERS, the maximum regular survivor annuity for a spouse is generally 50% of the retiree’s unreduced annuity. A partial survivor benefit is generally 25%.

When a former spouse has a court-ordered survivor benefit, that award counts toward the maximum available regular survivor benefit. The combined regular survivor benefits for a current and former spouse generally cannot exceed 50%.

That can create a surprising result.

Suppose a divorce decree awarded your former spouse the full 50% survivor benefit. You later remarry and elect a full survivor benefit for your current spouse.

The current spouse can still be covered by an election, but the former spouse’s court-ordered award has already used the entire regular survivor-benefit limit. As a result, your current spouse generally would not receive a regular survivor annuity while the former spouse remains entitled to the full award.

A Partial Former-Spouse Benefit Is Different

Now imagine the divorce decree awarded the former spouse only 25%.

That leaves room within the 50% maximum. If you elect the maximum survivor benefit for your current spouse, the current spouse could potentially receive the remaining 25%.

That’s why the actual language of the divorce decree matters. A former spouse’s survivor benefit isn’t necessarily all or nothing. The court order may award the maximum benefit, a partial benefit or a specified fraction.

The Current-Spouse Election Can Still Matter

Even if a former spouse currently has the maximum court-ordered survivor benefit, making a current-spouse election can still be important.

OPM allows a current spouse to have contingent survivor protection in certain situations. If the former spouse later loses eligibility, the current spouse may become entitled to the survivor benefit.

A former spouse’s survivor annuity can end under the terms of the court order, upon the former spouse’s death, or in certain circumstances if the former spouse remarries before age 55.

FEHB Could Be Part of the Problem

The issue isn’t limited to the pension.

A current spouse’s ability to continue FEHB coverage after a retiree’s death generally depends on the spouse being entitled to a survivor annuity or otherwise meeting the applicable requirements. OPM specifically identifies situations involving a former spouse’s court-ordered survivor benefit that can affect a current spouse’s FEHB eligibility.

That means an old divorce order could potentially affect not only the income your current spouse receives, but also their ability to continue federal health insurance coverage.

What Remarried Federal Employees Should Check

If you’ve remarried and your previous divorce involved your federal retirement benefits, find the actual court order and determine exactly what it awarded.

Was the former spouse given 50%? 25%? Another amount? Does the order contain conditions that could eventually end the former spouse’s entitlement?

Then look at the survivor election for your current spouse.

The important question isn’t simply whether you’ve elected a FERS survivor annuity for your current spouse. It’s how much survivor protection is actually available after the former spouse’s rights are taken into account.

If you’re remarried and have a prior divorce order involving your federal retirement benefits, a Federal Retirement Consultant (FRC®) can help you understand how that order may affect your current spouse’s survivor and FEHB benefits.