When you fill out your FERS retirement paperwork, one of the most important decisions you will make is whether to elect a survivor benefit for your spouse. This decision is irrevocable after retirement, and getting it wrong can have serious consequences for your family.

What Are FERS Survivor Benefits?

When you retire under FERS, you can elect to provide your spouse (and in some cases, a former spouse) with a monthly benefit after your death. In exchange, your own monthly pension is reduced while you are alive.

There are two elections:

Full Survivor Annuity

  • Your pension is reduced by 10%
  • If you die first, your spouse receives 50% of your full unreduced annuity for life

Partial Survivor Annuity

  • Your pension is reduced by a smaller amount (5% for a 25% survivor benefit)
  • Your spouse receives 25% of your full unreduced annuity if you die first

No Survivor Benefit

  • Your pension is NOT reduced
  • Your spouse receives nothing from your FERS pension if you die first
  • Note: Your spouse must sign a written consent to waive the survivor benefit

The Cost-Benefit Math

Example: Pension of ,000/month. Full survivor benefit election.

  • Your reduced pension: ,000 × (1 - 10%) = ,800/month (-/month)
  • Spouse’s benefit if you die first: 50% of ,000 = ,000/month

Is the /month “premium” worth the ,000/month protection?

Break-even analysis: You pay /month. If your spouse outlives you by 5 years and collects ,000/month:

  • Spouse receives: 60 months × ,000 = ,000
  • Cost while you were alive (assume 20-year retirement): 240 × = ,000

In this scenario, the benefit paid out more than the cost after just 4 years of the spouse collecting.

When Survivor Benefits Make Sense

Survivor benefits are especially valuable when:

  • Your spouse has little or no independent retirement income
  • There is a significant age difference (younger spouse = more years of potential benefit)
  • Your spouse has poor health insurance outside of your FEHB coverage
  • Your spouse cannot work or has significantly lower earnings

When You Might Decline

You might reasonably decline if:

  • Your spouse has their own substantial pension, Social Security, or retirement savings
  • You have significant life insurance that would replace the income
  • Your health outlook suggests a shorter retirement

The FEHB Connection

Here is a critical point many employees miss: if you do NOT elect any survivor benefit, your spouse loses access to Federal Employees Health Benefits (FEHB) coverage when you die.

FEHB in retirement can be extremely valuable. The ability to keep a spouse on FEHB coverage after your death is, for many families, the most important reason to elect survivor benefits — even just the partial option.

Survivor Benefits and the FERS Supplement

The FERS Supplement is only paid to the retiree — it cannot be passed to a survivor. If you die before age 62, your spouse receives only the FERS pension survivor amount, not any portion of the supplement.

Action Steps

  1. Get your pension estimate using our FERS Calculator
  2. Calculate the cost of full vs. partial survivor benefits on your specific pension
  3. Assess your spouse’s independent retirement income
  4. Talk to a federal benefits specialist before you submit your retirement paperwork — this decision is permanent