Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Federal Employees Benefits Q &A

Do you have questions about your federal employee CSRS or FERS pension/annuity or federal employee retirement planning? Concerns about your Thrift Savings Plan (TSP) account or what about federal employee pay and leave issues?

Ask your question here.

The Q&A forum is moderated by Ed Zurndorfer -- an expert on federal employee benefits -- and a Certified Financial Planner, chartered life underwriter and chartered financial consultant in Maryland.

Zurndorfer is also the author of several federal employee benefits guides published by Federal Employees News Digest.

Your question will be put into a message queue and submitted for review. We cannot guarantee that all questions will be answered, however any answered questions will appear below, and some will also be featured in our daily Federal Daily e-newsletter (Subscribe here). Members of Federal Soup will not be able to submit replies to the questions posted, as we leave the replies for the moderator only.

Please do not submit employee benefits questions to the webmaster or the forum moderator.

Note: FederalSoup.com has attempted to compile information that is as accurate and current as possible for federal employees. Federal policies, laws, regulations, statistics and addresses continually change. Therefore, no warranties are made as to the accuracy or completeness of the information presented in this column. If additional clarification or information is needed, it is suggested that competent and professional assistance be sought. Mr. Zurndorfer does not moderate other forums on FederalSoup and will not reply to general FederalSoup inquiries submitted in this Q&A forum.

Options
Go to last post Go to first unread
floron  
#1 Posted : Friday, August 17, 2012 12:07:28 AM(UTC)
floron

Rank: Newbie

Groups: Registered
Joined: 5/19/2008(UTC)
Posts: 12

Ed,
I'm a CSRS employee who is looking to retire end of this year.  I plan to provide a full survivor benefit for my spouse but wanted to get your advise on "pension Max" as an alternative to providing the maximum survivor benefits and can leave survivorship benefits to other than spouse.
 
Ed Zurndorfer  
#2 Posted : Tuesday, August 21, 2012 10:01:16 AM(UTC)
Ed Zurndorfer

Rank: Senior Member

Groups: Registered
Joined: 9/10/2001(UTC)
Posts: 4,414

First, to whom would you leave to survivor benefits besides a spouse? Remember, other than a spouse, the bigger the difference in age between you and your insurable interest, the more cost to you to provide a survivor annuity benefit. Second, assuming your spouse consents not to receive a survivor annuity and you instead substitute a life insurance policy on you to provide a lump sum of life insurance proceeds to your spouse in the event you predecease your spouse, keep in mind that you must be insurable. If you do not provide some amount of a survivor annuity to your spouse, at your death your spouse would lose FEHB benefits. But even if you provide a partial survivor annuity benefit, you would have to purchase a life insurance policy. The cheapest form of life insurance is term life insurance, which for most retiring employees age 55 to age 65, has a limited term of 20 years. To fully protect their spouses,  a retiring employee is therefore forced to purchase cash value or permanent  life insurance which can be extremely expensive at the retiring employee's age and probably not worth the extra cost.   
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.367 seconds.