Federal Erroneous Retirement Coverage Corrections Act

Survivors

Do survivors get an election under FERCCA?

If an employee, former employee, or retiree would have had a choice under FERCCA but died before making an election, then the survivor can make that election instead.

I'm a widow of a Federal employee who was in the wrong retirement plan. When my husband died, the retirement coverage was FERS and I received a lump sum benefit based in part on his final salary. Do I have to pay that back before I can elect CSRS Offset?

No, you do not have to pay it back.

The lump sum benefit you received is known as the Basic Employee Death Benefit. It is equal to half of your spouse's final salary plus an additional amount. Surviving spouses choose whether they want to receive this benefit in a single payment or in equal installments over 36 months. This benefit is only available under FERS.

FERCCA has special rules for surviving spouses who choose CSRS Offset rather than FERS and were paid a Basic Employee Death Benefit. Instead of you paying it back, OPM will apply an actuarial reduction when it calculates your CSRS Offset survivor benefit.

What is an actuarial reduction?

An actuarial reduction allows you to receive benefit without having to pay an amount due in a lump sum. OPM reduces your annuity in a way that, on average, allows the Retirement Fund to recover the amount of the missing lump sum over your lifetime. The actuarial reduction becomes a permanent reduction in your benefit. The amount of the actuarial reduction depends on your age and the amount of the lump sum you would otherwise have to pay at the time you retire. To compute an actuarial reduction, OPM divides the lump sum amount by the present value factor for your age at retirement.

I am eligible to make an election under FERCCA. Can I make the election if my former spouse is entitled to a portion of my retirement benefits by court order?

Yes, but if you want to elect FERS, you need your former spouse's consent to the election.

If a deceased employee's survivors include both a current spouse and a former spouse, or spouses, who are eligible for survivor annuities, must all of them consent to an election of FERS?

Yes. If an employee dies before making an election of retirement coverage under FERCCA, all eligible potential survivors, that is both the current and any former spouses, must consent to an election of FERS coverage. If they do not all consent, the election cannot be made.

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