All About FERS- Survivor Benefits for Loved Ones

Hi, my name is Mike Lanway, I'm a financial planner. I'm an expert in federal employee benefits, and I'm here to help you decide what you need to do to make best use of those benefits to your advantage. 

FERS is a system that is designed to help you if you get to retirement, if you become disabled before retirement, or if you die as an employee, they want to help your family. When I say your "family," they're picky about who that is. 

They're talking about a spouse and they're talking about children who are younger than 22. That's assuming your children actually go to college or vocational school of some sort, and if they don't, then it's children who are younger than 19 and still in high school. They're trying to help you plan a survivorship, a survivorship plan for your family. They're trying to help you protect your family if something happens to you while you're federal employee so they have several benefits. 

The benefits include something around $34,000. It changes every year. Right now, $33,400 that your family, that your spouse would get if you die, plus they would get 50% of your annual salary. It doesn't matter when you would die during the year, it's 50% of your annual salary. They get two in lump sum income amounts. It's income, not insurance, so it's going to be taxed. They get that as long as you put 18 months of actual FERS service in your career. If you've done that, they have that. 

If you put in 10 years, your spouse also will get whatever portion, her portion or his portion, 50% of your retirement income that you actually earned as of the date of your death. They're going to get that income immediately. As soon as OPM approves you, accepts your death certificates and stuff like that, they're going to get that income immediately. 

It doesn't matter if your spouse is 25 years old and working, making $200,000 a year. There's not an age requirement. There's not an income limitation. There's not anything they need to justify receiving that survivors income. Tremendous benefit. Something you might check out, something you ought to know about something of a plan.

We hope you enjoyed our video series on the different components of your retirement and your benefits. If you want to see more, learn more at your own pace, use our annual benefit statement. You'll see the link at the bottom and within the description. Go there, take a look at it, we think you'll be happy with what you see and and that it's going to help you.