Q: I retired under the FERS program. I took the 10 percent reduction in my pension so that my wife would have survivor’s benefits. I heard that if my wife dies according to the list below, my 90 percent reduction would change accordingly. Is this true?
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Q. My wife’s health problems forced her to retire from her government job last year on disability. She began receiving FERS interim payments when she died in February. She provided for a survivor’s annuity, and has a CSRS deposit and redeposit totaling $53,000 from taking out retirement during a break-in service. I have the option to pay this back in order to receive approximately $700 more per month in the survivor annuity payment. Would I be better off paying this back, or investing this amount in the TSP to hopefully gain an equivalent amount in interest? I am also a…
Q. I’m retiring this year. I am a GS-13 under FERS with 32 years of service. When I get an annuity for my TSP, if I die, will my wife continue getting the same monthly payments? A. Payments will be made to your surviving spouse only if you elect this option at the time you purchase the annuity. A 100 percent survivor benefit is an option — if you’re willing to pay for it. There is no provision for specifying the timing of the monthly payments at the time of purchase. Once the annuity is purchased, however, you will deal directly…
Q. I plan on making the full survivor (50 percent) annuity reduction at retirement. I understand the cost is 10 percent, but I have received different answers as to the ongoing cost. One expert said the cost is calculated at 10 percent at the time of retirement. The other expert said the 10 percent cost also grows with each annual COLA so that the ongoing cost is always 10 percent of the then-current annuity payment after COLA. Which is correct?