Life Events
Divorce, Death & Survivor Planning
How major life changes affect your federal benefits
A federal career can span decades — and life doesn't stand still during that time. From divorce to death, and everything in between, your benefits can be significantly impacted by major life events. This module covers how federal retirement, health, and survivor benefits are affected by these critical transitions.
Divorce & Court-Ordered Benefits
A divorce decree can divide your federal benefits, but only if it meets strict legal standards. It's crucial to understand that your FERS Pension and your TSP are separate assets and must be handled by separate court orders.
Dividing the FERS Pension: The COAP
OPM will only divide your pension if it receives a Court Order Acceptable for Processing (). This is a legal document that must be crafted with specific, unambiguous language. Vague terms like "half of the pension" are not sufficient. The order must provide a clear formula or fixed amount.[OPM]
Your TSP requires a separate Retirement Benefits Court Order (RBCO). The TSP has its own set of rules and will not act on an order directed at OPM.[TSP]
Critical Planning Point: Impact on Future Spouses
If a COAP awards a full survivor annuity to your former spouse, you cannot elect one for a new or current spouse after retirement. This can prevent a future spouse from being eligible to continue FEHB coverage after your death. This is a vital planning point to address during divorce proceedings.
Survivor Benefit Options at Retirement
When you retire, you'll make a one-time, largely irrevocable decision about survivor benefits. This election is one of the most important you will make, as it directly impacts your spouse's long-term financial security and their ability to keep health insurance.
| Option | What Your Spouse Gets | Cost to Your Pension | FEHB Continuation? |
|---|---|---|---|
| Full Survivor Annuity | 50% of your unreduced pension | 10% reduction to your pension | ✅ Yes |
| Partial Survivor Annuity | 25% of your unreduced pension | 5% reduction to your pension | ✅ Yes |
| Waive Survivor Annuity | Nothing | No reduction | ❌ No |
The Most Important Warning
If you are married and choose to waive the survivor benefit or elect a partial benefit, your spouse must provide notarized written consent. Waiving this benefit means your spouse permanently loses access to FEHB after you pass away. This is often overlooked and can cause devastating financial and health crises later in life.
FEHB Caveat: Deferred vs. Postponed Retirement
This is a critical distinction. If you leave federal service before you are eligible for an immediate annuity, you may be eligible for a deferred or postponed retirement. Your choice has permanent consequences for health insurance.
- Deferred Retirement: If you leave with rights to a deferred annuity (e.g., separating at age 40 with 15 years of service), you are generally NOT eligible to re-enroll in FEHB when your pension starts at age 62. This means no FEHB for you or a survivor.
- Postponed Retirement (MRA+10): If you retire under the MRA+10 provision and choose to postpone your annuity to avoid age penalties, you CAN suspend your FEHB coverage and re-enroll when you start the annuity. This preserves FEHB eligibility for you and your future survivor.
If You Die Before You Retire (Death-in-Service)
Even if you die before retirement, your survivors may still receive significant benefits, depending on your service history. If you have at least 18 months of creditable civilian service, your spouse may be entitled to survivor benefits.[OPM]
- With 18 months to 9 years of service: Your spouse may receive the Basic Employee Death Benefit (BEDB)—a lump sum of 50% of your annual pay plus a fixed amount (indexed annually)—and potentially a limited survivor annuity.
- With 10 or more years of service: Your spouse is entitled to a survivor annuity equal to 50% of the pension you had earned at the time of your death.
Key Note: These benefits are based on service, but your designation of beneficiary forms must be current to avoid delays or disputes over who receives payment.
Legacy Planning: The "Break Glass" Binder
Death is hard enough. Don't leave your family guessing about your benefits, forms, or passwords. A legacy binder or "Break Glass in Case of Death" folder makes everything easier when the time comes.
What to Include in Your Binder:
- Copies of all SF-50s (your official service history)
- Copies of your beneficiary designation forms: SF 3102 (FERS Pension), SF 1152 (Unpaid Compensation), and TSP-3 (TSP Account)
- Your most recent retirement estimate from your agency
- Contact info for your agency's HR retirement specialist
- A list of all important accounts and passwords (stored securely)
- Your will, power of attorney, and estate planning documents
Pro Tip: Keep both a physical binder and a digital backup (on a password-protected USB or secure cloud file). Tell at least two trusted people where it is and how to access it.
Final Reminders & Official Links
- Always keep your beneficiary forms up to date, especially after a marriage, divorce, or birth of a child. These forms override your will for federal benefits.
- Divorce decrees must include specific, acceptable language to be enforced by OPM and the TSP.
- Survivor benefit elections are final at retirement — choose carefully and with full spousal awareness.
Helpful Official Pages:
🔗 Related Topics
Insurance in Retirement
Understanding FEHB and FEGLI continuation after life events
Calculating Your Pension
How divorce and survivor elections affect your pension calculations
Disability Retirement
Alternative retirement options if life events impact your ability to work
Advanced Tax & Income Planning
Tax implications of divorce settlements and survivor benefits
The Final Approach
How to handle life events during the retirement application process