{"id":32485,"date":"2025-07-24T00:34:08","date_gmt":"2025-07-24T00:34:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/32485\/"},"modified":"2025-07-24T00:34:08","modified_gmt":"2025-07-24T00:34:08","slug":"survivor-annuity-mistakes-and-their-consequences-under-fers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/32485\/","title":{"rendered":"Survivor Annuity Mistakes And Their Consequences Under FERS"},"content":{"rendered":"

In Slagle v Office of Personnel Management<\/a> (CAFC No. 225-1242 (nonprecedential) 7\/8\/2025), Wayne Slagle worked for the U.S. Postal Service until retirement. He designated his then wife, Sarah, to receive any lump sum benefits payable under FERS after his death. <\/p>\n

When he retired ten years later, he designated Sarah to receive the maximum survivor\u2019s annuity and therefore elected to receive a reduced annuity upon his retirement. At the time he was informed in writing by OPM that the survivor annuity lapses in the event his spouse dies or they are divorced. If the latter, he would have two years to elect a survivor\u2019s annuity for the divorced spouse, or, if he remarried he would have two years from the date of that marriage to elect a survivor\u2019s annuity for the new spouse. (Opinion p. 2)<\/p>\n

The year after his retirement, Wayne divorced Sarah and married Gloria that same year. He did not change the designation of Sarah to receive his lump sum benefits, nor did he elect a survivor\u2019s annuity for either Sarah or Gloria. Some 11 years later, Wayne died. Per his long-standing designation, OPM paid Sarah Wayne\u2019s lump sum benefits since he had no one designated to receive a survivor annuity. (P. 3)<\/p>\n

Gloria applied to OPM to receive a survivor\u2019s annuity. OPM denied her application, having already paid Sarah the lump sum. She appealed to the Merit System Protection Board, but the MSPB upheld OPM\u2019s ruling.<\/p>\n

Gloria took her case to the appeals court. That court has now sustained OPM and MSPB in the denial of an annuity for Gloria.<\/p>\n

The court explains that there are two survivor benefits under FERS. <\/p>\n

First is a survivor\u2019s annuity but the retiree must elect this benefit upon retirement and must file proper paperwork to ensure the surviving spouse is designated to receive it. In this case, Wayne elected it, his annuity was therefore reduced, but he failed to file the proper designation paperwork with OPM in the required time frame of his divorce and remarriage. (Pp. 3-4)<\/p>\n

The second type of benefit is the lump sum payment if no one qualifies for a survivor\u2019s annuity, as is the case in this instance. The lump sum includes the retiree\u2019s contributions that are not already paid out through annuities. Sarah was the designated recipient of that lump sum payment so OPM properly paid her that amount. (Pp. 3-4)<\/p>\n

Conclusion<\/p>\n

This case is hardly unique. Many surviving spouses have been tripped up when their retiree spouse did not file the required designation for a survivor\u2019s annuity, either through neglect or intentionally. <\/p>\n

Unfortunately, the spouse finds out the hard way as is the case here. The rules are pretty straightforward on divorce and survivor\u2019s annuities. In this case, the retiree either intentionally cut his spouse out of getting an annuity after his death or he simply forgot about executing a designation. If he simply forgot what was required to take care of an annuity for either his former or current wife, the result is he continued to receive a reduced annuity throughout his retirement.\u00a0<\/p>\n

\u00a9 2025 Susan McGuire Smith. All rights reserved. This article
\n\t\t\t\t\t\t\t\tmay not be reproduced without express written consent from Susan McGuire Smith.<\/p>\n","protected":false},"excerpt":{"rendered":"In Slagle v Office of Personnel Management (CAFC No. 225-1242 (nonprecedential) 7\/8\/2025), Wayne Slagle worked for the U.S.…\n","protected":false},"author":2,"featured_media":32486,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-32485","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/32485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=32485"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/32485\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/32486"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=32485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=32485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=32485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}