USPS DEATH BENEFITS - USPS DEATH IN SERVICE

587.1 Basic Employee Death Benefit

587.11 General
A basic employee death benefit is payable to the current spouse if the following conditions are met:

a. The employee dies after completing 18 months of creditable civilian service; and

b. The marriage has lasted at least 9 months; or

c. A child was born of the marriage; or

d. The death was accidental.

587.12 Amount
The basic employee death benefit consists of

a. 50 percent of the final annual rate of basic pay, and

b. $21,335.30 in 1998 and as adjusted under title 5, United States Code, 8462.

587.13 Payment
A spouse may elect to receive the basic employee death benefit as either

a. A one-time payment, or

b. Thirty-six equal monthly installments.

587.2 Survivor Benefit - Spousal

587.21 General
When an employee dies after completing at least 10 years of creditable service, the spouse is entitled to an annuity equal to 50 percent of the annuity the employee had earned through the day of death. This is in addition to the basic employee death benefit. (see 587.1)

587.22 Beginning and Ending Date

587.221 Beginning
An annuity begins on the day after the death of the employee on whose service the annuity is based.

587.222 Ending
An annuity ends on the last day of the month before the spouse remarries before age 55 or dies.

587.223 Reinstatement
If a current spouse annuity is terminated because of a remarriage, the annuity can be reinstated on the day of the termination of the remarriage. A former spouse annuity may never be reinstated.

587.3 Refund of Contributions

587.31 Eligibility
If there is no survivor entitled to monthly survivor annuity benefits, the employee's contribution to the retirement fund are paid in accordance with the normal order of precedence.

587.32 Normal Order of Precedence
a. First, to the beneficiary or beneficiaries designated by the employee on SF 3102, Designation of Beneficiary;

b. Second, to the widow or widower;

c. Third, to the child or children of the employee;

d. Fourth, to the parents of the employee or the surviving parent;

e. Fifth, to the duly appointed executor or administrator of the estate;

f. Sixth, to such other next of kin of the employee as OPM determines to be entitled under the laws of the domicile of the employee at the date of death.

587.4 Former Spouse(s)
Any benefit (or a portion of any benefit) payable to a current spouse is payable to a former spouse instead if the former spouse is entitled to the benefit under the terms of a qualifying court order.


587.5 Child Annuities

587.51 Eligibility
A surviving child of an employee who dies after completing 18 months of creditable civilian service is entitled to an annuity.

587.52 Rates of Annuities
The amount of the annuity payable is the difference between the amount that would be paid by CSRS and the amount actually paid by Social Security. In cases where the Social Security amount exceeds the amount otherwise payable under CSRS regulations, no payments are made from the retirement fund.

587.53 Beginning and Ending Dates

587.531 Beginning Date
The annuity begins on the day after the employee dies.

587.532 Ending Date
An annuity ends on the last day of the month before the child:

a. Becomes 18 years old unless she or he is a full-time student or incapable of self-support;

b. Becomes capable of self-support after becoming 18 years old unless a full-time student;

c. Becomes 22 years of age if he or she is a full-time student and capable of self-support;

d. Ceases to be a full-time student after becoming 18 years of age;

e. Marries or dies.

587.54 Disabilities
A child is eligible for a continued annuity if the Social Security Administration finds that the child is incapable of self-support.

587.6 Procedures Upon Death of an Employee

587.61 Contacting Next of Kin
When an employee dies, the employing office (a) contacts the next of kin and advises such person of benefits payable and of the right to apply for them and (b) renders every assistance in completing SF 3104, Application for Death Benefits. The family should also be referred to the Social Security Administration and assistance should be provided concerning the Thrift Savings Plan.

587.62 Filing Death Claim Applications
SF 3104 is filed with the Eagan ASC through the employing office or sent directly to the:

RETIREMENT OPERATIONS CENTER
OFFICE OF PERSONNEL MANAGEMENT
PO BOX 200
BOYERS PA 16020-0200

For complete information go here >>> USPS ELM - Employee Labor and Relations Manual or here >>> USPS ELM

What Happens to Your Federal Employee Benefits if You Die While Still Working?

By John Grobe

Wednesday, November 12, 2008

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What Happens to Your Benefits if You Die While Still Working?

This is a question we do not want to ponder, as we all plan on living long after we retire. When it comes to Ben Franklin's quote, "Plan like you'll live forever; pray like you'll die tomorrow", we all tend to focus on the first part. However, it is helpful to know what will happen to our federal benefits, should we die while still employed.

Your health insurance will no longer do you any good, but it may be a great deal for your surviving spouse. If your spouse is enrolled with you on a self and family policy on the date of your death, he/she will be able to continue federal employee health benefits and Uncle will continue to pay his share.

Your life insurance will be paid to your designated beneficiary. If the amount of your insurance is $5,000 or greater, your beneficiary will not receive a check. Rather, they will receive a money market account and a checkbook for the account.

Speaking of beneficiary forms, do you know who your beneficiaries are? If you have any doubt, you may wish to check your Official Personnel Folder (OPF). The last thing you want is having your ex-spouse walking off with all you have saved over your career.

If you are married at the time of your death, the survivor benefits your spouse will receive are dependent on your retirement system. If you are CSRS, your spouse will receive a full survivor annuity (55% of what your annuity would be). In the unlikely event you have less than 22 years of service, your spouse will receive a "guaranteed minimum" annuity.

If you are under FERS, your spouse will receive a lump-sum death benefit of ½ of your final salary (or high-3, if higher) and $28.093.53 (in 2008). If you have worked ten years or more, your spouse will be entitled to a full survivor annuity (50% of what your annuity would be).

Under both retirement systems, if your surviving spouse remarries before the age of 55, he/she forfeits the survivor annuity.

Your annual leave, credit hour and comp time balance are considered "unpaid compensation" and will be paid to your designated beneficiary.

Your TSP will go to your designated beneficiary. Your beneficiary may either take the money all at once (paying all the deferred taxes at once) or spread it out over his/her lifetime (paying all the deferred taxes a little bit at a time). If your spouse is a federal employee, they may combine your TSP account with their own.