What is my current insurable interest benefit?

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How can I get OPM to give me my current insurable interest benefit? My ex wife will receive a survivor annuity and my current wife will also receive an annuity from my elected insurable interest. OPM says their computer can only show one survivor annuity (my ex wife). If I write they never answer!

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Posted by (Questions: 1, Answers: 1)
Asked on April 10, 2017 6:06 pm
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I do not know how you can get OPM to do anything! However, Chapter 50 of the CSRS FERS Handbook provides the formula for calculating both benefits. I will try the summarize generically and hopefully this will help give you an idea of who gets what. Here is the link to that chapter: https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c050.pdf It is impossible to respond with specifics as the court order might dictate something for which I have no knowledge of.
First, there is something called Order of Reductions in Annuity and OPM always reduces annuities in the same order. The basis used to compute the reduction for an insurable interest survivor benefit is your annuity after reduction for age and deposit, if applicable, but before the traditional survivor benefit reduction. Your retirement was reduced based on the difference in age between you and your current spouse with the least amount being 10% and the most 40% of your pension. The entitlement to your current spouse under this election will be 55% of the reduced annuity, increased by any cost-of-living increases you received prior to the date of death.
Example: Your pension is $2000 per month and your spouse is the same age as you. Your reduction would be 10% of $2000 or $200 per month. Your wife’s entitlement would be 55% of $1800 or $990 per month.
Whereas the basis used in computing a traditional survivor annuity is your annuity after reduction for age and deposit, if applicable, and election of the insurable interest survivor annuity.
Example: Your pension is now $1800 and if your former spouse is entitled to the full survivor benefit based on the court order, she could be entitled to half of $1800 or $900 per month upon your death and your pension has gone down another 10% or $180 per month. Now your pension is $1620.
Again, depending on the written court order, some of this might be different.

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Answered on April 10, 2017 9:30 pm

Thank you Ms Lumsden but that does not answer the question. When I retired in 2008 I elected an insurable interest for my current spouse. In 2011 I received an email from OPM stating that the insurable interest payout would be $3218 per month. That was 6 years ago. I want to know the CURRENT payout.

( at April 10, 2017 11:59 pm)
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I am able to answer your specific question as OPM adjudicates these and I have no way to access your records. I am more than willing to work with you on this outside of this forum. I have responded to you via your direct email to me.

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Answered on April 11, 2017 12:44 am

Thank you. I have also sent you an email. At least you reply to emails. That is more than i ever get from OPM.

Stan

( at April 11, 2017 2:57 am)
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Stan, if your insurable interest annuity amount was $3218 per month in 2011 and you are FERS, then your pension was approximately $5851 before the cost of your survivor benefits are applied…does that sound correct?
Following that logic, find what your annuity amount is now, add 10% to that amount to account for your former spouse survivor benefit cost and then multiply that new amount by 55%. That should provide you with the current insurable interest survivor benefit amount.
Unfortunately, only OPM can provide you with the current correct amount and I apologize on their behalf, but I am only able to offer the formula to you. Let me know if I can be of further assistance.

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Answered on April 11, 2017 2:53 pm