When a federal annuitant or employee passes away, the stream of income from their monthly annuity does not automatically transfer to a beneficiary. Instead, a specific process must be followed with the U.S. Office of Personnel Management (OPM) to determine and distribute any death benefits. For survivors, navigating this process correctly is crucial to receiving entitled financial support, whether through a monthly survivor annuity or a lump-sum payment.
Notifying OPM of the Annuitant's Death
The very first step in the process is to notify OPM of the death. This must be done as soon as possible to prevent overpayment, which the government is required to reclaim.
- How to report: A death can be reported online using the OPM Report of Death form, or by calling the Retirement Information Office.
- Information needed: When reporting, you should have the annuitant's name, Social Security number, claim number (if known), date of birth, and date of death ready. The names and addresses of any survivors should also be provided.
- Overpayment recovery: If OPM sends an annuity payment after the date of death, the bank should be notified not to spend the funds, as OPM will reclaim the payment. Any prorated final payment will be issued later as part of the claim settlement.
The Application and Documentation Process
After OPM is notified, they will mail an application for death benefits to the applicable survivor(s). For federal retirees, this packet includes Standard Form 3104 (FERS) or Standard Form 2800 (CSRS).
Required documentation to include with the application package often includes:
- Proof of death: An official, certified copy of the death certificate.
- Proof of relationship: A marriage certificate for a surviving spouse or birth certificates for dependent children.
- Legal documentation: For a court-appointed administrator or executor, a copy of the appointment with a raised seal.
- Marriage termination evidence: If applicable, proof of the termination of a prior marriage, such as a divorce decree or former spouse's death certificate.
Types of Survivor Benefits
Survivor benefits are determined by the retirement plan (CSRS or FERS) and the options elected by the retiree before their death.
For Surviving Spouses
- Monthly Annuity: A surviving spouse may be eligible for a monthly annuity if the retiree elected a reduced annuity to provide this benefit. Spouses must generally have been married to the retiree for at least nine months, with exceptions for accidental death or a child born of the marriage.
- Lump-Sum Benefit: If no monthly survivor annuity is payable, remaining retirement contributions may be paid out in a lump sum.
For Surviving Children
- Monthly Benefit: Dependent children may receive a monthly benefit, which is provided by law and does not require an election by the employee or retiree. This applies to unmarried children up to age 18, and in some cases, students up to age 22, or disabled children.
- FERS Offset: Under FERS, the children's monthly benefit is reduced by any Social Security survivor benefits they receive. In many cases, this can reduce the FERS benefit to zero.
Comparison of FERS and CSRS Survivor Benefits
| Feature | Federal Employees Retirement System (FERS) | Civil Service Retirement System (CSRS) |
|---|---|---|
| Spousal Annuity | Maximum 50% or partial 25% of the retiree's basic unreduced annuity. The retiree's annuity is reduced by 10% or 5% respectively. | 55% of the base amount elected by the retiree. The retiree's annuity is reduced based on a specific formula (2.5% of the first $3,600, plus 10% of the remainder). |
| Basic Employee Death Benefit (BEDB) | A lump sum of 50% of the employee's final salary (or high-3 average, if higher) plus an inflation-adjusted amount. Paid to a surviving spouse of a FERS employee with at least 18 months of creditable service. | Not applicable. |
| Lump-Sum Payout (No Annuity) | Any remaining retirement contributions and accrued interest are paid according to the order of precedence. | Any remaining retirement contributions and accrued interest are paid according to the order of precedence. |
| Children's Annuity | Monthly benefit is offset by Social Security survivor benefits, potentially reducing the FERS payment to zero. | Monthly benefit is generally not affected by Social Security payments. |
Order of Precedence for Lump-Sum Payments
If no survivor annuity is payable, or for the distribution of any remaining contributions, a lump-sum payment is distributed based on a specific order of precedence:
- To the beneficiary designated by the deceased annuitant.
- To the surviving spouse.
- To the children of the deceased (or their descendants).
- To the parents of the deceased.
- To the executor or administrator of the deceased's estate.
- To the next of kin, as determined by state law.
The Survivor Process Timeline
- Report Death to OPM: Immediately notify OPM online or by phone.
- Wait for Forms: OPM will process the notification and send a packet with the necessary application forms, which may take several weeks.
- Complete and Submit Paperwork: Fill out all forms completely, attach all required documents, and submit the packet to OPM. Use a trackable mailing service like certified mail.
- Claim Review: OPM specialists will review the claim in the order it was received. They may request additional information.
- Annuity or Lump-Sum Disbursed: Once approved, benefits will be disbursed. Monthly benefits are typically sent via electronic funds transfer.
Conclusion
When an OPM annuitant passes away, the survivor's entitlement to benefits, whether a monthly annuity or a lump-sum payment, depends on the elections made by the retiree and the specific retirement plan (FERS or CSRS). The process requires a timely notification to the OPM and the submission of proper documentation to establish eligibility. This structured approach ensures that the correct beneficiaries receive the benefits they are due, providing vital financial support during a difficult time. For detailed information and guidance on federal death benefits, including the specific forms and requirements, individuals should consult the official OPM website or resources from organizations like the National Active and Retired Federal Employees Association (NARFE).
