FERS calculation where both spouses are Feds

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My spouse and I are both federal employees. Spouse has 31.9 years service, I have 12 yrs. We’ve been married for 27.5 yrs. Spouse has 366 months total qualified service. Using a separation date of May, 2017, his high-3 is 154,400, and mine is 101,223.

Can you please help me figure out our monthly annuities for a pro rata scenario, fraction and a formula using these conditions? Also please explain survivor benefit?

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Posted by (Questions: 1, Answers: 0)
Asked on March 13, 2019 2:42 pm
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You have not provided enough information to provide a detailed response however, I will provide different scenarios depending on your age and retirement coverage. In all of these scenarios I could not include any unused sick leave in the computation formula and I am using the regular formula, not the formula for a special provision employee.
If you are both FERS and both under the age of 62, when you retire, your spouse’s high-3 would be multiplied by .317500 with 31 years and 9 months of creditable service and yours by .120000 for your 12 years of creditable service. If your spouse is age 62 or older at retirement, his fraction increases to .349250 with the same 31 years 9 months of service and yours remains .120000 as you do not have 20 or more years of service. If your spouse is CSRS, the fraction would be .597500 for 31 years and 9 months of creditable service.
With your question “Can you please help me figure out our monthly annuities for a pro rata scenario, fraction and a formula using these conditions?” if it is for use in a divorce, this is not the appropriate forum. You should seek professional guidance and assistance on this topic. OPM has “A Handbook for Attorney’s on Court Ordered Benefits” which would be of assistance in helping you understand what is and is not available and how it can be divided. https://www.opm.gov/retirement-services/publications-forms/pamphlets/ri38-116.pdf
With your request to explain survivor benefits, a survivor benefit election is made at the time of retirement. It does not matter if you are both federal employees as each employee earns their own retirement and each is also eligible to collect against the spouse’s record in the event of death. Again, it depends on whether one is CSRS or FERS. For CSRS, the survivor benefit, with spousal approval, can be as little as $1 per month and as much as 55% of the annuity before he cost of the survivor benefit is subtracted. The cost for CSRS is $90 for the first $3600 of the survivor benefit election and then 10% for any amount over $3600. For FERS, the elections available are a full survivor benefit which would be 50% of the retiree’s annuity prior to the cost be applied or a partial survivor benefit which would be 25% of the retiree’s annuity prior to the cost being applied. Full survivor benefits under FERS reduce the retiree’s pension by 10% and a partial reduces by only 5%.

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Answered on March 13, 2019 7:27 pm
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Hmm

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Answered on March 15, 2019 6:56 am