CSRS employees’ offset at age 62, and survivors’ annunities

0
0

My CSRS offset at age 62 will be approximately $1,296/per month. If I elect a monthly survivor annuity and my husband outlives me, will the $1,296 be deducted from his monthly annuity?

Blocked by moderator
Posted by (Questions: 1, Answers: 0)
Asked on August 8, 2017 10:00 pm
386 views
0
Private answer

The answer depends on whether your spouse would be eligible for a Social Security survivor benefit from your work record…if not, then they would get the entire CSRS calculated survivor benefit. If they become entitled to Social Security survivor benefits, the CSRS survivor annuity is reduced (offset) by the amount of the survivor’s Social Security benefit attributable to the period the deceased annuitant was under CSRS Offset. This can be found at the following link, page 8: https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c071.pdf

Blocked by moderator
Posted by (Questions: 0, Answers: 268)
Answered on August 9, 2017 3:02 pm
0
Private answer

Further question…
Upon my retirement, if my wife & I use the strategy to choose her CSRS survivors annuity to $100/mnth (for example) so she remains vested in the FEHB insurance, and invest the difference in life insurance, what will be the ramification regarding her receiving a SS survivors benefit?
Specifically, if her SS survivors benefit from my years in CSRS Offset is GREATER than $100/mnth does she lose FEHB? (Since the SS survivors benefit would offset and replace her reduced CSRS surviors annuity.)

Blocked by moderator
Posted by (Questions: 1, Answers: 2)
Answered on August 29, 2018 5:22 pm
1
Private answer

She will be able to continue her FEHB coverage as a survivor benefit was elected and if the benefit is insufficient to cover the premiums, she will make arrangements with OPM to make the premium payments directly to the retirement system.

Blocked by moderator
Posted by (Questions: 0, Answers: 268)
Answered on August 29, 2018 9:48 pm

1. Am I correct in my understanding that due to offset, upon my death, her SS survivor benefit (due to me) would be deducted from the CSRS survivors annuity that she would qualify for?
2. While alive, at age 62, the portion of my SS pension will most likely be more than the deduction (offset) taken from my CSRS pension. So we will be a few dollars ahead each month (at age 62 and beyond). But those few extra dollars each month (because my SS will most likely be greated than the offset amount), will disappear upon my death?
3. Thank you Elaine.

( at August 30, 2018 6:57 pm)
1
Private answer

Greg, you should read page 8 of the link above which explains in detail what happens. And, this will be dependent on whether your spouse will actually collect as a widow or based on her own work record. Depending on her age at your death and her ability to draw on her own might mean she will collect on her own record and not yours.

Blocked by moderator
Posted by (Questions: 0, Answers: 268)
Answered on August 30, 2018 8:32 pm

Thank you! You are very helpful.

( at August 31, 2018 5:15 pm)