You can never eliminate the emotional weight of loss, but you can ease the financial uncertainty with preparation. Image: pikselstock/Shutterstock.com
By: Dallen HawsThe loss of a spouse is one of the most emotionally devastating events anyone can experience. For federal employees, grief is often accompanied by confusion and uncertainty around the complex web of federal benefits and survivor entitlements. Whether you’re currently employed or already retired, understanding what happens to your federal benefits if your spouse dies—or what your spouse is entitled to if you pass away—is critical for protecting your family’s financial well-being.
This article provides a comprehensive guide to what happens when a federal employee loses a spouse, or when a spouse of a federal employee passes away, with a special focus on survivor benefits under the Federal Employees Retirement System (FERS).
Clarify the Scenario: Are You the Federal Employee or the Spouse?
This guide covers two major scenarios:
- You are a federal employee whose spouse has passed away.
- You are the surviving spouse of a federal employee who has passed away.
Each scenario has different implications and actions that need to be taken. Let’s address both.
If You Are the Federal Employee and Your Spouse Passes Away
Step 1: Notify Your Agency
You should contact your agency’s Human Resources office to report the death. They will help you update your records and any applicable benefits, such as:
● Federal Employees Health Benefits (FEHB) – If your spouse was covered under your plan, you may need to adjust your enrollment.
● Federal Employees Dental and Vision Insurance Program (FEDVIP) – Adjust your coverage if your spouse was enrolled.
● Federal Employees’ Group Life Insurance (FEGLI) – Update beneficiaries on your life insurance policies if your spouse was listed.
● Thrift Savings Plan (TSP) – Change your designated beneficiary if needed.
● Emergency Contact and Next of Kin Records – Ensure all official records reflect current, correct information.
Step 2: Review Your Retirement Plans
Many federal employees elect a Survivor Benefit when they retire, which provides a portion of their pension to their spouse after death. If your spouse has passed before you retire, you may want to revise your plan to remove the survivor benefit election and potentially receive a higher monthly annuity.
You can adjust this during your retirement application process, but understanding your options ahead of time is helpful. If you already retired and elected a survivor benefit, you may be eligible to have your annuity recomputed to reflect that your spouse predeceased you. For more information on this, check out OPM’s website: https://www.opm.gov/retirement-center/my-annuity-and-benefits/life-events/death/death-of-spouse/
If You Are the Surviving Spouse of a Federal Employee Who Has Passed Away
This is where understanding eligibility and entitlements is especially important.
Scenario A: The Federal Employee Died While Still Working
If your spouse was actively employed by the federal government at the time of death, you may be entitled to two main benefits:
1. Lump Sum Death Benefit
You could receive a lump sum payment made up of:
● 50% of the federal employee’s final salary, plus
● A fixed amount (Around $32,000 in 2025)
Example: If your spouse’s final salary was $100,000, you’d receive:
● 50% of $100,000 = $50,000
● Fixed amount = $32,000
Total lump sum = $82,000
Eligibility Requirements:
● The federal employee must have had at least 18 months of creditable civilian service.
● You must have been married to them for at least 9 months, unless:
- The death was due to an accident, or
- You had a child together.
Source: https://www.opm.gov/retirement-center/fers-information/survivors/
2. Monthly Survivor Annuity
You may also qualify for a monthly survivor annuity if your spouse had at least 10 years of creditable service.
This annuity is based on the pension your spouse would have received if they had retired the day before they passed.
Calculation Example
High-3 Salary: $100,000
Years of Service: 20
Pension Accrued = $100,000 × 20 × 1% = $20,000 annually
Monthly Pension = $20,000 ÷ 12 = $1,666
Spouse Benefit = 50% of $1,666 = $833/month
This monthly benefit is payable for the rest of your life.
Scenario B: The Federal Employee Died After Retirement
If your spouse was retired and receiving a FERS annuity, what you receive depends entirely on what was elected during their retirement process:
Survivor Benefit Election at Retirement
Federal retirees can elect to provide either 50%, 25% or 0% of their pension to their surviving spouse. The 50% survivor benefit costs 10% of your pension while the 25% benefit costs 5%. If you have either a 50% or 25% survivor benefit, your spouse can keep your FEHB if you pass away. If there is no survivor benefit selected, FEHB will go away.
If they elected a survivor benefit, you would begin receiving the percentage they selected upon their death.
For example, if they were receiving a $3,000/month pension and elected a full survivor benefit (50%), you’d receive $1,500/month after their passing.
If no survivor benefit was elected, you do not receive any of their pension after death.
It’s critical for federal employees to discuss this with their spouse before retiring, as it cannot be changed once retirement is finalized unless the spouse passes away or there’s a qualifying life event (such as divorce and remarriage).
Additional Federal Benefits to Consider
● Thrift Savings Plan (TSP): If you’re named as the beneficiary, you may roll the funds into a beneficiary participant account or an IRA.
● FEGLI Life Insurance: You may receive a death benefit if you’re the designated beneficiary.
● Social Security Survivor Benefits: If your spouse had enough Social Security credits, you might also qualify for benefits through the Social Security Administration.
Final Thoughts: Plan Early, Plan Smart
The loss of a spouse is hard enough without navigating a bureaucratic maze. Whether you’re the federal employee or the spouse, take time now to understand:
● Your FERS retirement and survivor benefit options
● Who your TSP and life insurance beneficiaries are
● What happens to FEHB and other insurances after death
You can never eliminate the emotional weight of loss, but you can ease the financial uncertainty with preparation.
Talk with your agency’s HR department, consult a federal benefits specialist, and—most importantly—communicate with your spouse. Planning now can protect your family’s future when they need it most.
Dallen Haws is a Financial Advisor who is dedicated to helping federal employees live their best life and plan an incredible retirement. He hosts a podcast and YouTube channel all about federal benefits and retirement. You can learn more about him at Haws Federal Advisors.
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