A frequently asked question from retirees is this: "What happens to my annuity if I marry or remarry after I retire?" Good question. And one that’s worth answering.
Let’s start by finding out what happens to the annuity of those who aren’t married at the time they retire, either because they never married or because they are divorced and there isn’t a court order requiring a former spouse survivor benefit.
If a retiree does elect a survivor annuity, two things happen. First, the retiree’s annuity will be reduced by the same amount it would have been had that election been made at retirement. The actual dollar amount of the reduction would depend on whether the retiree elected a full or partial survivor annuity benefit. Second, the retiree’s annuity will be permanently reduced to pay for the deposit owed. That deposit equals the difference between the retiree’s new annuity rate and the annuity paid for every single month since retirement, plus 6 percent interest, divided by an actuarial factor based on the retiree’s age on the day the annuity is reduced.
Now let’s see what happens to the annuity of a retiree who decides to marry a former spouse. If the divorce occurred before retirement and there wasn’t any court order requiring the retiree to provide a survivor annuity, the rules would be the same as those described in the preceding paragraph.
On the other hand, if the retiree was married at retirement, later divorced, and subsequently remarried that person, what the retiree can do is limited. If that spouse had agreed to receive no survivor annuity, then the retiree can’t elect one at remarriage. If a partial annuity was elected, then the retiree can elect one that is no greater than the original amount. However, if a full survivor annuity was originally elected, a full survivor annuity can be elected now. The reduction in the retirees annuity would be calculated as described above and would be proportional to the amount elected for the survivor annuity.
Note: A retiree who marries or remarries has two years to decide whether to provide a survivor annuity to the newly acquired spouse. After that, no election if possible.
