CSRS FERS

Spouse Benefits - Death of an Employee

Chapter 70

Important Notice 

On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage 

Act (DOMA) is unconstitutional. As a result of the Supreme Court’s decision, the 

United States Office of Personnel Management (OPM) will now be able to extend 

certain benefits to Federal employees and annuitants who have legally married a 

spouse of the same sex, regardless of the employee’s or annuitant’s state of 

residency. OPM is currently in the process of updating and revising the website to 

reflect this change, and will be updating this information as soon as possible. Please 

check back in the coming weeks for updates.
 

 

 

 

 

 

 

 

 

CSRS FERS
 Spouse Benefits - Death of an Employee 

Chapter 70 

Important Notice 

A series of court cases have changed the way the Office of Personnel Management (OPM) 

calculates disability annuities and survivor annuities that are based in whole or in part on service 

in positions that are usually tied to higher retirement deduction rates and to higher annuity accrual 

rates. Benefits Administration Letter (BAL) 10-105, Enhanced Disability and Survivor 

Annuity Computations Under CSRS and FERS, July 7, 2010, provides information and 

guidance relating to those changes. The information in BAL 10-105 applies to both disability 

claims and survivor annuity claims (based on a death-in-service) under the Civil Service 

Retirement System (CSRS) and under the Federal Employees Retirement System (FERS) that 

involve employees who have performed service in the following positions: 

 Law Enforcement Officer, Firefighter, and Nuclear Materials Courier, that is qualifying for 

retirement under 5 U.S.C. § 8336(c) or § 8412(d); 

 Custom and Border Protection Officer that is qualifying for retirement under 5 U.S.C. 

§ 8336(c) or § 8412(d); 

 Member of the Supreme Court Police; 

 Member of the Capitol Police; and 

 Air Traffic Controller that is qualifying for retirement under 5 U.S.C. § 8336(e) or § 8412(e). 

The information in BAL 10-105 supersedes the information in chapters 61 and 70 of the CSRS 

and FERS Handbook that references disability and survivor annuity computations for the 

employees working in positions listed above. It also supersedes the guidance provided in BAL 

95-106, dated October 20, 1995, and BAL 02-104, dated May 10, 2002. 

Click here to read BAL 10-105. 
 CSRS Spouse Benefits - Death of an Employee FERS i 

Chapter 70
 

Table of Contents 

Subchapter 70A CSRS 

Part 70A1 General Information 

Section 70A1.1-1 Overview ......................................... 1
 

A. Introduction ................................................. 1
 

B. Topics Covered ............................................... 1
 

C. Organization of Subchapter ........................................ 2
 

D. Statement of Authority .......................................... 2
 

Section 70A1.1-2 Eligibility Requirements ............................... 3
 

A. General .................................................... 3
 

B. Employee Requirements ......................................... 3
 

C. Survivor Requirements .......................................... 4
 

Part 70A2 Benefits Payable 

Subpart 70A2.1 Amount of Survivor Benefits 

Section 70A2.1-1 Survivor Annuity to a Spouse ............................ 6
 

A. General .................................................... 6
 

B. Computation of Benefit--Regular Formula .............................. 6
 

C. Deceased Law Enforcement Officers and Firefighters ....................... 6
 

D. Deceased Air Traffic Controllers .................................... 7
 

Section 70A2.1-2 Survivor Annuity to a Spouse -- Deceased CSRS Offset Employee ... 8
 

A. General .................................................... 8
 

B. Social Security Benefits Not Payable ................................. 8
 

C. Social Security Benefits Payable .................................... 8
 

Section 70A2.1-3 Effect of Refunded and Nondeduction Service ................ 9
 

A. General .................................................... 9
 

B. Refunded Service .............................................. 9
 

C. Nondeduction Service ........................................... 9
 

D. Reference ................................................... 9
 

Section 70A2.1-4 Lump-Sum Payment ................................. 10
 

A. General Rule ................................................. 10
 

B. Reference ................................................... 10
 

Subpart 70A2.2 Duration of Survivor Benefits 

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Section 70A2.2-1 Duration of Survivor Benefits ............................ 11
 

A. Beginning Date ............................................... 11
 

B. Ending Date ................................................. 11
 

C. Restoration of Survivor Benefits .................................... 11
 

Part 70A3 Procedures 

Section 70A3.1-1 Procedures ........................................ 12
 

A. Agency Responsibility ........................................... 12
 

B. Spouse Responsibility ........................................... 13
 

C. OPM Responsibility ............................................ 13
 

Section 70A3.1-2 Advice to Surviving Spouse ............................. 14
 

A. Alternative Annuity ............................................ 14
 

B. Health Benefits: Continuing Coverage ................................ 14
 

C. Health Benefits: Agency Responsibility ............................... 14
 

D. Life Insurance: Order of Precedence ................................. 14
 

E. Life Insurance: Agency Responsibility ................................ 15
 

Part 70A4 Crediting Military Service 

Subpart 70A4.1 General Information 

Section 70A4.1-1 Overview ......................................... 16
 

A. Introduction ................................................. 16
 

B. Topics Covered ............................................... 16
 

C. Cross References .............................................. 16
 

D. Organization of Part ............................................ 17
 

E. Statement of Authority .......................................... 17
 

Subpart 70A4.2 Military Service Performed Before January 1, 1957 

Section 70A4.2-1 General Rules ...................................... 18
 

A. General .................................................... 18
 

B. Social Security Credit for Pre-1957 Military Service ....................... 18
 

C. Civil Service Survivor Benefits ..................................... 18
 

Subpart 70A4.3 Military Service Performed On or After January 1, 1957 

Section 70A4.3-1 General Rules ...................................... 19
 

A. General .................................................... 19
 

B. Post-1956 Military Service Deposit .................................. 19
 

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Chapter 70
 

Section 70A4.3-2 Employee First Employed Under CSRS Before October 1, 1982 .... 20
 

A. General .................................................... 20
 

B. Survivor Eligibility Requirements for Immediate Social Security Benefits ......... 20
 

C. Eligible for Social Security Benefits at Employee's Death .................... 20
 

D. Eligible for Social Security Benefits in the Future ......................... 21
 

E. Not Eligible for Social Security Benefits ............................... 21
 

F. Survivors Who Lose Social Security Eligibility ........................... 21
 

G. Reference ................................................... 22
 

Section 70A4.3-3 Employee First Employed Under CSRS On or After

 October 1, 1982 ........................................ 23
 

A. Rule ...................................................... 23
 

B. Reference ................................................... 23
 

Subpart 70A4.4 Procedures 

Section 70A4.4-1 Procedures ........................................ 24
 

A. Agency Responsibility ........................................... 24
 

B. Survivor Responsibility .......................................... 26
 

Part 70A5 Crediting Military Service - Military Retirees 

Subpart 70A5.1 General Information 

Section 70A5.1-1 Overview ......................................... 28
 

A. Introduction ................................................. 28
 

B. Topics Covered ............................................... 28
 

C. Organization of Part ............................................ 29
 

D. Statement of Authority .......................................... 29
 

Subpart 70A5.2 Rules for Crediting Military Service 

Section 70A5.2-1 General Rules ...................................... 30
 

A. Employees Receiving Military Retired Pay ............................. 30
 

B. Offset by Amount of Military Survivor Benefits Payable ..................... 30
 

C. Benefit Adjustments ............................................ 31
 

D. When Military Deposit is Required .................................. 31
 

E. Amount of Deposit ............................................. 32
 

Subpart 70A5.3 Procedures 

Section 70A5.3-1 Procedures ........................................ 33
 

A. Agency Responsibility ........................................... 33
 

B. Survivor Responsibility .......................................... 33
 

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Chapter 70
 

Part 70A6 Office of Workers' Compensation Death Benefits 

Subpart 70A6.1 General Information 

Section 70A6.1-1 Benefits Payable .................................... 34
 

A. OWCP Death Benefits ........................................... 34
 

B. Funeral Expenses .............................................. 35
 

C. Compensation Benefits and Federal Retirement Benefits ..................... 35
 

D. Instances When OWCP Benefits Are Not Payable and CSRS Benefits Are ......... 36
 

E. Worksheet Developed to be Used in Completing Death Benefits Forms ........... 36
 

Subchapter 70B FERS 

Part 70B1 General Information 

Section 70B1.1-1 Overview ......................................... 39
 

A. Introduction ................................................. 39
 

B. Organization of Subchapter ........................................ 39
 

C. Applicability of Subchapter ....................................... 39
 

D. Applicable CSRS Provisions ....................................... 40
 

E. Statement of Authority .......................................... 40
 

Part 70B2 Basic Death Benefit (Benefits Payable) 

Section 70B2.1-1 Eligibility Requirements for the Basic Employee Death Benefit ..... 41
 

A. General .................................................... 41
 

B. Employee Requirements ......................................... 41
 

C. Survivor Requirements .......................................... 41
 

D. Creditable Civilian Service ........................................ 41
 

E. Noncreditable Civilian Service ..................................... 42
 

Section 70B2.1-2 Amount of Basic Benefit ............................... 43
 

A. General .................................................... 43
 

B. $15,000 Portion ............................................... 43
 

C. Fifty Percent of Final Salary Amount ................................. 43
 

D. High-3 Average Salary .......................................... 44
 

E. Deposit Service ............................................... 44
 

Section 70B2.1-3 Payment of the Basic Death Benefit ........................ 45
 

A. Options .................................................... 45
 

B. Election .................................................... 45
 

C. Installment Payments ........................................... 45
 

D. Amount of Installments .......................................... 45
 

E. Stopping Installment Payments ..................................... 45
 

F. Death of Survivor .............................................. 45
 

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Chapter 70
 

Section 70B3.1-1 Eligibility for Survivor Annuity Benefit ........................ 47
 

A. Employee Requirements ......................................... 47
 

B. Creditable Civilian Service ........................................ 47
 

C. Creditable Military Service ........................................ 47
 

Section 70B3.1-2 Amount of Survivor Annuity Benefit ....................... 48
 

A. General .................................................... 48
 

B. Computation--Regular Formula ..................................... 48
 

C. Deceased Law Enforcement Officers, Firefighters, and Air Traffic Controllers ...... 48
 

Part 70B4 Procedures 

Section 70B4.1-1 Procedures ........................................ 49
 

A. Applicable CSRS Provisions ....................................... 49
 

B. Exceptions: Forms ............................................. 49
 

Section 70B4.1-2 Advice to Surviving Spouse ............................. 50
 

A. Benefits Payable ............................................... 50
 

B. Alternative Annuity ............................................ 50
 

C. Direct Payment of FEHB Premiums .................................. 50
 

Part 70B5 Crediting Military Service 

Subpart 70B5.1 General Information 

Section 70B5.1-1 Overview ......................................... 51
 

A. Introduction ................................................. 51
 

B. Organization of Subpart .......................................... 51
 

C. Applicable CSRS Provision ....................................... 51
 

D. Statement of Authority .......................................... 51
 

Subpart 70B5.2 Military Service Performed On or After January 1, 1957 

Section 70B5.2-1 Post-1956 Military Service in CSRS Annuity Component ......... 52
 

A. General Rule ................................................. 52
 

B. Amount of Deposit ............................................. 52
 

Section 70B5.2-2 Post-1956 Service Under FERS Rules ...................... 53
 

A. General Rule ................................................. 53
 

B. Effect of Military Deposit on Basic Death Benefits ........................ 53
 

C. Effect of Military Deposit on Survivor Annuity .......................... 53
 

D. Amount of Deposit ............................................. 53
 

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Chapter 70
 

Subpart 70B5.3 Crediting Military Service - Military Retirees 

Section 70B5.3-1 General Rules ...................................... 54
 

A. Employees Receiving Military Retired Pay ............................. 54
 

B. When Military Deposit is Required .................................. 54
 

Subpart 70B5.4 Procedures 

Section 70B5.4-1 Procedures ........................................ 55
 

A. Applicable CSRS Provisions ....................................... 55
 

B. Forms ..................................................... 55
 

Part 70B6 Office of Workers' Compensation Death Benefits 

Subpart 70B6.1 General Information 

Section 70B6.1-1 Benefits Payable .................................... 56
 

A. OWCP Death Benefits Compared to FERS Benefits ........................ 56
 

Subchapter 70C Job Aids 

Section 70C1.1-1 Forms ........................................... 57
 

Agency Certification for Death in Service ................................. 58
 

Survivor's Military Service Election Deceased Employee Covered by CSRS or CSRS Offset 60
 

Verification of Military Retired Pay Status for Survivors of Deceased Federal Employees . . 63
 

Verification of Military Retired Pay Status for Survivors of Deceased Federal Employees . . 64
 

Worksheet to be Used in Completing the Following Forms for Death Benefits ......... 65
 

Election of OWCP Benefits in Lieu of Survivor Annuity ....................... 69
 

Death Benefit Payment Rollover Election Form ............................. 70
 

Section 70C2.1-1 Death Gratuity Authorized by Public Law 104-108 ............. 72
 

CSRS and FERS Handbook April, 1998 
 

 CSRS Spouse Benefits - Death of an Employee 1 

Chapter 70 

Subchapter 70A CSRS 

Part 70A1 General Information 

Section 70A1.1-1 Overview 

A.	 Introduction When an employee dies, annuity benefits may be payable to a surviving 

spouse, children, and a former spouse. This Chapter covers annuity 

benefits payable to a surviving spouse. 

B. Topics Covered	 1. This subchapter covers: 

•	 The eligibility requirements a spouse must meet; 

•	 The amount of survivor benefits payable as an annuity to the spouse 

of a deceased employee; 

•	 The effect service credit payments have on the amount of survivor 

benefits; 

•	 The effects of military service and/or military retired pay on the 

amount of survivor benefits; 

•	 The duration of the survivor annuity; 

•	 The procedures the agency and the surviving spouse must follow to 

initiate payment of benefits; and 

• Counseling the agency must provide the surviving spouse; 

2. This subchapter does not cover: 

•	 Spousal benefits payable on the death of an annuitant (see 

Chapter 71, Spouse Benefits - Death of an Annuitant); 

•	 Spousal benefits payable on the death of a former employee (see 

Chapter 72, Spouse Benefits - Death of a Former Employee); 

•	 Death benefits payable to children (see Chapter 73, Children's 

Benefits); 

•	 Death benefits payable to former spouses (see Chapter 74, Former 

Spouse Survivor Benefits) 

CSRS and FERS Handbook	 April, 1998 
2 CSRS Spouse Benefits - Death of an Employee
 

Chapter 70
 

Section 70A1.1-1 Overview (Cont.) 

B.	 Topics Covered • Lump sum death benefits; (see Chapter 75, Lump Sum Benefits); 

(Cont.) 

•	 Benefits payable on the death of a reemployed annuitant (see 

Chapter 100, Reemployed Annuitants); and 

•	 Benefits payable if the employee's death was job-related> are 

partially covered in this chapter, however also see Chapter 102, 

Relationship Between Retirement Annuity and Compensation for 

Work-Related Injuries and Diseases. 

C. Organization of The CSRS subchapter has six parts. 

Subchapter 

Part Name of Part Page 

70A1 General Information 1 

70A2 Benefits Payable 8 

70A3 Procedures 14 

70A4 Crediting Military Service 18 

70A5 Crediting Military Service ­

Military Retirees 31 

70A6 Office of Workers' 

Compensation Death Benefits 36 

NOTE: The FERS subchapter about spousal death benefits payable on the 

death of an employee begins on page 37. 

D.	 Statement of This subchapter is based on the laws and regulations cited below. 

Authority 

•	 United States Code: 5 U.S.C. 8341(a)(1) and (2); 8341(d); 8341(g); 

8341(i); 8342(c) and (d) 

•	 Code of Federal Regulations: 5 CFR 831.618, 831.619(a), 831.620, 

831.301, 831.2101-2107 

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Chapter 70
 

Section 70A1.1-2 Eligibility Requirements 

A.	 General A deceased employee and surviving spouse must meet certain requirements 

before spousal survivor annuity benefits are payable upon the death of the 

employee. 

NOTE:	 If the employee's death was job-related, there may be workers' 

compensation benefits payable. See Chapter 102 for additional 

information. 

B.	 Employee 1. For survivor annuity benefits to be payable, a deceased employee must 

Requirements have: 

•	 Completed at least 18 months of creditable civilian service; and 

•	 Died while subject to CSRS deductions. 

2.	 An individual's death is considered a death in service and survivor 

benefits are payable as described in this subchapter if -­

•	 An applicant for disability retirement dies before final separation by 

the employing agency, even if the application for disability 

retirement has been approved; or 

•	 An applicant for immediate retirement dies before the commencing 

date of annuity, even though separation has occurred. 

3.	 An individual is considered to have died as a retiree and survivor 

benefits are payable as described by the information in Chapter 71, 

Spouse Benefits - Death of an Annuitant, if the individual (1) has met 

all requirements for entitlement to annuity, including filing an 

application, (2) has separated from the agency rolls, and (3) dies on or 

after the date on which annuity begins to accrue. 

CSRS and FERS Handbook	 April, 1998 
4 CSRS Spouse Benefits - Death of an Employee
 

Chapter 70
 

Section 70A1.1-2 Eligibility Requirements (Cont.) 

B.	 Employee NOTE: The alternative form of annuity (AFA) currently applies only to 

Requirements nondisability retirees with life-threatening afflictions or other 

(Cont.) critical medical conditions. Some employees with life-threatening 

or other critical medical conditions have met requirements (1) and 

(2), but have died before the date on which their annuity would 

begin. For example, an employee retired in the middle of the 

month, and his or her annuity would have commenced on the first 

day of the following month, but the employee died before that 

date. The individual will be considered a retiree for purposes of 

paying the AFA lump sum if the employee met all of the 

requirements for nondisability retirement, including filing an 

application, he or she was separated from the agency rolls, and 

medical information establishes a life threatening affliction or 

critical medical condition. The eligible survivor may receive the 

AFA even if the employee died before the annuity begins. The 

application submissions should include medical evidence to 

establish the terminal illness. If a statement is present concerning 

the voluntary retiree's wish to obtain the AFA, the statement can 

be forwarded to OPM. 

4.	 Except in the case of a Member of Congress, an individual is not 

considered to be either a retiree or an employee and the only death 

benefits payable are as described by Chapter 75, Lump-Sum Benefits, if 

he or she separates from the service and dies -­

•	 Before applying for retirement; or 

•	 Before the commencing date of a deferred annuity. 

C.	 Survivor For a survivor annuity to be payable to a spouse, the spouse must meet one 

Requirements of the following requirements: 

1.	 The surviving spouse and the employee must have been married for at 

least 9 months. Count the aggregate time of all marriages between the 

spouse and employee to determine the total length of marriage. 

or 

2.	 A child was born of the marriage. For this purpose, child includes: 

•	 A child born posthumously to the deceased employee and spouse; 

•	 A child born to the deceased employee and spouse before they were 

married; and 

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 CSRS	 Spouse Benefits - Death of an Employee 5 

Chapter 70 

Section 70A1.1-2 Eligibility Requirements (Cont.) 

C. Survivor • A child of a prior marriage between the deceased employee and 

Requirements spouse. 

(Cont.) or 

3. The death of the employee was accidental. See 5 CFR 831.642(d). 

and 

There is no court order awarding the total survivor annuity to a former 

spouse. If a former spouse was awarded only a part of the total 

survivor annuity, the surviving spouse will receive the remainder. 

C.	 Survivor However, if a court order awards the total survivor annuity to a former 

Requirements spouse, the surviving spouse will receive nothing. 

(Cont.) 

In either case, if the former spouse later loses entitlement (because of 

death or remarriage before age 55), the surviving spouse will begin to 

receive the full survivor annuity. 

CSRS and FERS Handbook	 April, 1998 
6 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Part 70A2 Benefits Payable 

Subpart 70A2.1 Amount of Survivor Benefits 

Section 70A2.1-1 Survivor Annuity to a Spouse 

A. General A spousal survivor annuity is 55 percent of an annuity computed as if the 

employee had retired on a disability retirement as of the date of death. 

B.	 Computation of 

Benefit--Regular 

Formula 

C.	 Deceased Law 

Enforcement 

Officers and 

Firefighters 

A spouse receives 55 percent of the HIGHER of 1 or 2 below: 

1.	 An annuity computed under the general formula (see Chapter 50) based 

on the deceased employee's high-3 average salary and length of service 

to date of death, including credit for unused sick leave. 

2.	 A "guaranteed minimum" which is the LESSER of: 

•	 40 percent of the deceased employee's high-3 average salary; or 

•	 The regular annuity obtained after increasing the deceased 

employee's length of service by the period of time between the date 

of death and the date he or she would have been age 60. 

NOTE 1:	 If the employee has less than 3 years of service, the salary is 

simply averaged for the total period of service. 

NOTE 2:	 See Chapter 61, Computation of Disability Retirement Benefits, 

for a detailed discussion of the guaranteed minimum disability 

annuity benefit computation which generally is applicable to 

widows and widowers. 

NOTE 3:	 See parts 70A4 and 70A5 for information on situations 

involving post-1956 military service or in which the employee 

was in receipt of military retired pay at the date of death. 

1.	 If, at the date of death, the employee was a law enforcement officer or 

firefighter and: 

had at least 20 years of law enforcement or firefighter service, the 

spouse receives 55 percent of an annuity computed under the special 

formula for law enforcement officers and firefighters (see Chapter 

54, Special Computation Formulas for Law Enforcement Officers, 

Firefighters, and Air Traffic Controllers) based on the deceased 

employee's high-3 average salary and length of service to date of 

death, including credit for unused sick leave. 

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Chapter 70
 

Section 70A2.1-1 Survivor Annuity to a Spouse (Cont.) 

C.	 Deceased Law 2. If, at the date of death, the employee did not meet the requirements 

Enforcement stated above, or was not age 50 with 20 years of law enforcement/ 

Officers and firefighter service, the spousal annuity is computed under the regular 

Firefighters formula described in section 70A2.1-1B. 

(Cont.) 

D.	 Deceased Air 1. If, at the date of death, the employee: 

Traffic 

Controllers • Was age 50 or older and had at least 20 years of service as an air 

traffic controller, or 

•	 Had at least 25 years of air traffic controller service, regardless of 

age, the spouse receives 55 percent of an annuity computed under 

the special formula for air traffic controllers (see Chapter 54) based 

on the deceased employee's high-3 average salary and length of 

service to date of death, including credit for unused sick leave. 

2. If, at the date of death, the employee does not meet the age and/or 

service requirements stated in paragraph 1, the spousal survivor annuity 

is computed under the regular formula described in section 70A2.1-1B. 

CSRS and FERS Handbook	 April, 1998 
8 CSRS Spouse Benefits - Death of an Employee
 

Chapter 70
 

Section 70A2.1-2 Survivor Annuity to a Spouse -- Deceased CSRS Offset Employee 

A. General Survivor benefits to the spouse of a deceased CSRS Offset employee are the 

same as the benefits payable upon the death of an employee with full CSRS 

coverage until and unless the survivor becomes eligible for Social Security 

survivor benefits. 

B. Social Security 

Benefits Not 

Payable 

A surviving spouse who is not entitled to Social Security survivor benefits 

continues to receive full CSRS survivor benefits. 

C.	 Social Security If Social Security benefits are payable: 

Benefits Payable 

1.	 The surviving spouse receives full CSRS survivor benefits until he or 

she becomes entitled to Social Security survivor benefits. This 

normally occurs at age 60 unless the spouse is disabled or has a minor 

child in care. 

2.	 When the spouse becomes entitled to Social Security survivor benefits, 

the CSRS survivor annuity is reduced (offset) by the amount of the 

survivor's Social Security benefit attributable to the period the deceased 

was under CSRS Offset. 

3.	 For more detailed information on the CSRS Offset reduction, see 

Chapter 50, Computation of Annuity Under the General Formula. 

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Chapter 70
 

Section 70A2.1-3 Effect of Refunded and Nondeduction Service 

A. General All prior creditable civilian service counts toward eligibility for survivor 

benefits (for example, toward the 18-month service requirement), whether 

or not any deposit and/or redeposit is paid. 

If the benefit would be based on 40 percent of the high-3 average salary 

(whether or not a deposit and/or a redeposit is paid), paying the deposit or 

redeposit does not increase the survivor annuity. However, if the "40 

percent" benefit does not apply, refunded or nondeduction service will 

affect the computation of the survivor benefit as noted below. 

B. Refunded Service No credit is given in the computation of the survivor benefit for refunded 

service unless the survivor redeposits the refund plus any interest due. This 

includes refunded service performed before October 1, 1990. 

NOTE: Pay rates in effect during refunded service may be used for high-3 

average salary purposes even if no redeposit is made. 

C.	 Nondeduction If the nondeduction service was performed prior to October 1, 1982: 

Service 

•	 Nondeduction service is fully creditable for computation purposes. 

•	 If the deposit is not made, the amount of the annuity earned by the 

employee, which is used to determine the survivor's annuity, is reduced 

by 10 percent of the deposit due. 

If the nondeduction service was performed on or after October 1, 1982: 

•	 Nondeduction service is not used for service credit in the computation 

of the survivor benefit unless the survivor makes the deposit. 

•	 The nondeduction service can be used for high-3 average salary 

purposes. 

D.	 Reference See Chapter 21, Service Credit Payments for Civilian Service, for detailed 

information on deposits and redeposits. 

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10 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A2.1-4 Lump-Sum Payment 

A. General Rule If there is no survivor who is entitled to monthly survivor annuity benefits 

on the death of an employee, the total lump-sum credit in the Civil Service 

Retirement and Disability Fund is payable to the person(s) entitled under 

the normal order of precedence described in Chapter 75. 

B. Reference Chapter 75, Lump-Sum Benefits, describes the amount of the benefit 

payable. 

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 CSRS Spouse Benefits - Death of an Employee 11 

Chapter 70 

Subpart 70A2.2 Duration of Survivor Benefits 

Section 70A2.2-1 Duration of Survivor Benefits 

A.	 Beginning Date An annuity to the surviving spouse of an employee begins on the day after 

the employee's death. 

The exception is the case of a surviving spouse whose entitlement to a 

survivor annuity depends on the birth of a posthumous child. In this case, 

benefits begin on the day after the child is born. 

B.	 Ending Date A survivor annuity to a widow or widower ends on the last day of the 

month preceding the month in which he or she: 

1.	 Dies; or 

2.	 Remarries prior to age 55 (or age 60 if the remarriage occurred before 

November 8, 1984). > For remarriages occurring after January 1, 

1995, if the widow or widower remarries before age 55, and was 

married for at least 30 years to the individual on whose service the 

survivor annuity is based, the survivor annuity will not be 

terminated.< 

C.	 Restoration of An annuity that ended because of remarriage before age 55 (or 60, if 

Survivor Benefits applicable) may be restored if the: 

1.	 Remarriage ends by death, divorce, or annulment; and 

2.	 Widow or widower pays back any lump-sum benefit paid when the 

annuity ended. 

CSRS and FERS Handbook	 April, 1998 
12 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Part 70A3 Procedures 

Section 70A3.1-1 Procedures 

> Special procedures can be used when there is a disaster involving 

Federal employees. Examples of such situations include the death of 

civilian Federal employees aboard an aircraft operated or leased by the 

Federal Government, for victims of terrorism, Federal employees who 

die overseas, or other similar circumstances. If the normal handling 

procedures explained below are insufficient, contact OPM, Agency 

Services Division, at telephone number 202-606-0788.< 

A.	 Agency When an employee dies, the agency must: 

Responsibility 

1.	 Inform the next of kin or emergency addressee and advise him or her of 

the right to apply for death benefits. 

2.	 Inform the next of kin about what benefits may be payable. 

3.	 Assist the next of kin in completing the SF 2800, Application for Death 

Benefits. 

4.	 Complete the SF 2800A, Agency Certification for Death in Service. (A 

copy of the form is in subchapter 70C.) 

5.	 Complete the SF 2801-1, Certified Summary of Service. 

6.	 Submit the deceased employee's Individual Retirement Record 

(SF 2806), SF 2801-1, SF 2800A, and all SF 2809's and SF 2810's to 

OPM as soon as possible. Also submit the applicant's SF 2800 if the 

applicant sends it to the agency before the SF 2800A and SF 2806 are 

transmitted to OPM. 

The deceased employee's records and associated applications are to be 

received in OPM within 30 days of the date of death. 

7.	 When there is a surviving spouse eligible for a survivor annuity, follow 

the procedures in parts 70A4 and 70A5 if the deceased had post-1956 

military service or was receiving military retired pay at the date of 

death. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 13 

Chapter 70 

Section 70A3.1-1 Procedures (Cont.) 

B.	 Spouse The spouse must: 

Responsibility 

1.	 Complete the Application for Death Benefits (SF 2800) and attach any 

other forms and/or evidence as the application or circumstances require. 

2.	 Attach a certified copy of the employee's death certificate. 

3.	 Attach a certified copy of the employee's and spouse's marriage 

certificate. 

4.	 Send the completed application to: 

•	 The employing agency if the agency has not yet forwarded the 

employee's records to OPM; or 

•	 OPM if the employing agency has already forwarded the 

employee's records to OPM. Send the records to: 

Office of Personnel Management 

Retirement Operations Center 

Post Office Box 45 

Boyers, PA 16017-0045 

NOTE:	 A widow or widower who is entitled to a benefit in her or his 

own right and also on behalf of a child, only needs to file one 

application. 

C. OPM OPM determines what benefits are payable and, depending upon the type of 

Responsibility benefit and the circumstances in a particular case, may request the applicant 

to submit additional evidence. 

CSRS and FERS Handbook	 April, 1998 
14 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A3.1-2 Advice to Surviving Spouse 

A.	 Alternative The alternative annuity option is not available to a surviving spouse of an 

Annuity	 employee who dies in service. However, see the exception in Section 

70A1.1-2 B, concerning alternative annuity payments when an employee 

dies after separation but before the annuity commences.< 

B.	 Health Benefits: 1. If the employee had a self and family enrollment at the date of death 

Continuing and a survivor annuity is payable, the surviving spouse can continue 

Coverage health insurance coverage. The enrollment must be immediate, and 

there can be no lapse in coverage. The premiums will be deducted from 

the survivor annuity. If the annuity is inadequate to pay the FEHB 

premium, the survivor may make direct premium payments to OPM. 

2.	 If the employee had a self and family enrollment at the date of death, 

but no survivor annuity is payable--these survivors are not eligible for 

Temporary Continuation of Coverage--the enrollment terminates and the 

survivor has the right to convert to an individual policy within 30 days. 

3.	 If the employee had a self only enrollment at the date of death, the 

enrollment terminates at death with no right to enroll or convert for the 

survivor. 

C.	 Health Benefits: 

Agency 

Responsibility 

D.	 Life Insurance: 

Order of 

Precedence 

Assuming the survivor annuitant is eligible to continue health benefits 

coverage, the agency must provide the survivor or next of kin with an 

SF 2810, Notice of Change in Health Benefits Enrollment. The survivor 

must be informed that his or her health benefits enrollment will be 

transferred to OPM and that OPM, when necessary, will change the 

survivor's enrollment from family to self only coverage if there are no other 

eligible family members. 

For additional health benefits information, see The Federal Employees 

Health Benefits Handbook for Personnel and Payroll Offices (formerly FPM 

Supplement 890-1). 

The order of precedence for payment of life insurance proceeds is: 

•	 Designated Beneficiary (SF 2823) 

•	 Widow or widower 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 15 

Chapter 70 

Section 70A3.1-2 Advice to Surviving Spouse (Cont.) 

D.	 Life Insurance: • Child or children in equal shares, with the share of any deceased child 

Order of distributed among the descendants of that child 

Precedence 

•	 Parents in equal shares or the entire amount to the surviving parent 

•	 Duly appointed administrator/executor of estate 

•	 Next of kin under the laws of domicile at the time of the death. 

E.	 Life Insurance: 1. Make a preliminary determination of who is entitled to insurance and 

Agency have them complete form FE 6, Claim for Death Benefits. 

Responsibility 

2.	 Send the FE 6 and all other life insurance forms to the Office of Federal 

Employees' Group Life Insurance with a certified copy of the death 

certificate. 

If the claim is being made for an accidental death, the circumstances 

surrounding the death of the employee also must be documented. 

3.	 For additional life insurance information, see The Federal Employees 

Group Life Insurance Handbook for Personnel and Payroll Offices 

(formerly FPM Supplement 870-1). 

CSRS and FERS Handbook	 April, 1998 
16 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Part 70A4 Crediting Military Service 

Subpart 70A4.1 General Information 

Section 70A4.1-1 Overview 

A.	 Introduction In general, creditable military service can be used in computing the amount 

of annuity payable to the survivors of a deceased employee. However, 

there are certain special provisions for creditability that apply specifically to 

such benefits. Part 70A4 shows how these special provisions apply to the 

survivors of deceased CSRS employees; Part 70B5 shows how these special 

provisions apply to the survivors of deceased FERS employees. 

NOTE:	 Part 70A5 discusses the special provisions that apply when the 

deceased employee was a military retiree. 

B. Topics Covered	 This part covers: 

•	 The rules that apply if the deceased employee's military service was 

performed before January 1, 1957; 

•	 The rules that apply if the deceased employee's military service was 

performed on or after January 1, 1957; and 

•	 The procedures the employing agency and survivor must follow to 

make a deposit for creditable military service. 

C.	 Cross References • Chapter 22, Creditable Military Service, provides a complete discussion 

of the general rules for creditable military service. 

•	 Chapter 23, Service Credit Payments for Post-1956 Military Service, 

covers the general rules and procedures to be followed in making 

military deposits. 

•	 Chapter 74, Former Spouse Survivor Benefits, discusses the rights of 

former spouses. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Spouse Benefits - Death of an Employee
 17 

Chapter 70
 

Section 70A4.1-1 Overview (Cont.) 

D.	 Organization of The CSRS part of this subchapter has four subparts. 

Part 

Subpart Name of Subpart Page 

70A4.1 General Information 16 

70A4.2 Military Service Performed 

Before January 1, 1957 18 

70A4.3 Military Service Performed On 

or After January 1, 1957 19 

70A4.4 Procedures 24 

Parts 70A5 and 70B5, about special CSRS and FERS rules that apply to 

crediting military service in the survivor benefit computation when the 

deceased employee was a military retiree, begin on pages 28 and 49 

respectively. 

E.	 Statement of This part is based on the laws and regulations cited below. 

Authority 

•	 United States Code: 5 U.S.C. 8332(c)(3) 

•	 Code of Federal Regulations: 5 CFR 831.301 and 5 CFR 831.2101­

2107 

CSRS and FERS Handbook	 April, 1998 
18 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Subpart 70A4.2 Military Service Performed Before January 1, 1957 

Section 70A4.2-1 General Rules 

A.	 General Generally, creditable military service performed before 1957 is used in the 

computation of a CSRS survivor annuity. (See Chapter 22 for the 

circumstances in which military service is creditable.) However, unlike an 

employee, who does not have a choice, a survivor annuitant may elect to 

have military service between September 16, 1940, and December 31, 

1956, used in computing Social Security benefits instead of a CSRS 

survivor annuity. 

B.	 Social Security 

Credit for Pre1957 Military 

Service 

The Social Security Administration (SSA) allows credit for military service 

performed before January 1, 1957, only if there are no benefits based on 

the pre-1957 service payable from a Federal agency, other than the 

Department of Veterans' Affairs. (See 42 U.S.C. 402(1).) Because the law 

does not permit pre-1957 service to be excluded from CSRS benefit 

computations, survivors who choose to have the military service included in 

the Social Security benefit must waive all rights to survivor benefits under 

CSRS. Any surviving spouse may make this election. However, the 

survivor should give careful consideration to whether the election will 

provide a higher benefit. 

If the survivor is considering using the pre-1957 military service for Social 

Security benefits, he or she should contact a local Social Security office to 

obtain information on how benefits will be affected. 

C. Civil Service 1. If the survivor decides to use the decedent's pre-1957 military service to 

Survivor Benefits compute Social Security benefits, he or she should express this 

intention, in writing, to OPM when filing an Application for Death 

Benefits (SF 2800). OPM will advise the survivor of the consequences 

of the election (no CSRS survivor annuity payable) and request 

confirmation of the election. The survivor will be informed that the 

election is irrevocable once made. 

2. Any retirement contributions, deposits, or redeposits credited to the 

deceased employee's account will be paid in a lump-sum to the entitled 

individual(s) under the order of precedence if the survivor elects to 

waive CSRS survivor annuity. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Spouse Benefits - Death of an Employee 19 

Chapter 70 

Subpart 70A4.3 Military Service Performed On or After January 1, 1957 

Section 70A4.3-1 General Rules 

A.	 General While all military service is potentially creditable for use in the computation 

of CSRS survivor annuity benefits, military service performed after 

December 31, 1956, is subject to Social Security (FICA) taxes and is 

primarily creditable toward an employee's or survivor's Social Security 

benefit, if any. However, under certain circumstances, the survivor will 

also receive credit for the deceased employee's post-1956 military service in 

the CSRS annuity computation. These circumstances are described in 

sections 70A4.3-2 and 70A4.3-3 below. 

B.	 Post-1956 

Military Service 

Deposit 

Military service performed after December 31, 1956, can be credited for 

both Social Security and CSRS survivor benefits if a deposit is paid. The 

military deposit for a CSRS employee is 7 percent of the deceased 

employee's military base pay earned during the post-1956 military service 

plus interest, if applicable. For information on the calculation of military 

deposits, see Chapter 23, Service Credit Payments for Post-1956 Military 

Service. 

CSRS and FERS Handbook	 April, 1998 
20 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A4.3-2 Employee First Employed Under CSRS Before October 1, 1982 

A.	 General If the deceased employee was first employed under CSRS before October 1, 

1982, the decision to make a deposit for post-1956 military service depends 

on the survivor's eligibility for Social Security survivor benefits. 

B.	 Survivor 

Eligibility 

Requirements for 

Immediate Social 

Security Benefits 

The survivor of a deceased employee may be entitled to immediate Social 

Security survivor benefits if the employee was fully insured under Social 

Security (see guidance prepared by the Social Security Administration titled 

"Social Security Retirement, Survivors and Disability Insurance, and the 

Medicare Program" (issued as FPM Supplement 832-1) and: 

1.	 The survivor is the parent of an eligible child in care (normally, a child 

under the age of 16); or 

2.	 The survivor is age 50 or older and disabled (according to the Social 

Security definition of "disability"); or 

3.	 The survivor is age 60 or older. 

NOTE:	 Generally, Social Security spousal survivor benefits end if the 

survivor remarries before age 60 or benefits to a child in care 

terminate before the survivor reaches age 60. 

C.	 Eligible for Social Survivors who are eligible for Social Security survivor benefits at the 

Security Benefits employee's death may: 

at Employee's 

Death 1. Make the non-refundable military deposit (see Chapter 23 for a 

discussion of situations when a refund can be paid) so that the post-1956 

military service will be included in the survivor annuity computation; or 

2.	 Not make the military deposit, and the post-1956 military service will 

not be included in the survivor annuity computation. 

NOTE:	 If the deposit is not made, the post-1956 military service may be 

included in the computation in the future if the survivor loses 

entitlement to Social Security survivor benefits based on the 

deceased employee's service. However, the post-1956 military 

service will again be eliminated if the survivor later becomes 

entitled once again to Social Security benefits based on the 

deceased employee's service. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 21 

Chapter 70
 

Section 70A4.3-2 Employee First Employed Under CSRS Before October 1, 1982 (Cont.)
 

D.	 Eligible for Social Survivors who are eligible for Social Security survivor benefits in the future 

Security Benefits may: 

in the Future 

1.	 Avoid a reduction in survivor annuity benefits when he or she becomes 

entitled to Social Security survivor benefits based on the deceased 

employee's military service, by making a non-refundable military 

deposit before final adjudication of the claim; or 

2.	 Receive credit for the post-1956 military service in the CSRS spousal 

survivor benefits computation without making the military deposit until 

he or she becomes entitled to Social Security benefits based on the 

deceased employee's military service (generally at age 60). When the 

survivor becomes entitled to Social Security survivor benefits, the post1956 military service will be eliminated from the computation and the 

spousal survivor annuity reduced. 

E.	 Not Eligible for If the survivor is not eligible for Social Security survivor benefits, the 

Social Security military deposit need not be made. Survivors who are not sure of their 

Benefits eligibility for benefits must contact their local Social Security office for 

further information. 

F.	 Survivors Who 

Lose Social 

Security 

Eligibility 

Credit for post-1956 military service may be restored to a survivor who 

does not make the military deposit, if the survivor loses eligibility for 

Social Security survivor benefits based on the deceased employee's military 

service because: 

•	 The survivor becomes eligible for Social Security benefits based on his 

or her own earnings that exceed the survivor benefit; 

•	 The survivor remarries before age 60; or 

•	 The Social Security benefit stops because a minor child reaches age 16 

(and there is no other survivor currently eligible.) 

EXAMPLE: Assume John dies in service without making a deposit for 

4 years of post-1956 military service. He is fully insured under Social 

Security at date of death. The surviving spouse, Susan, who is age 50, will 

not be eligible for Social Security survivor benefits until age 60. 

CSRS and FERS Handbook	 April, 1998 
22 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A4.3-2 Employee First Employed Under CSRS Before October 1, 1982 (Cont.) 

F. Survivors Who The military service is credited in computing Susan's CSRS spousal 

Lose Social survivor annuity whether or not she makes the military deposit. Susan 

Security chooses not to make the deposit. When Susan reaches age 60 and becomes 

Eligibility (Cont.) eligible for Social Security survivor benefits, her CSRS spousal survivor 

annuity will be recomputed to exclude the military service. At age 62, 

Susan is eligible for and receives her own Social Security benefit because it 

exceeds the value of her benefit based on John's earnings record. Once 

payment of the Social Security survivor benefit stops, Susan's CSRS 

spousal survivor annuity may be recomputed to include the military service 

upon her request to OPM. 

G. Reference For additional information on creditable military service and on service 

credit payments for post-1956 military service, see Chapters 22 and 23. 

April, 1998 CSRS and FERS Handbook 
 

 CSRS Spouse Benefits - Death of an Employee
 23 

Chapter 70
 

Section 70A4.3-3 Employee First Employed Under CSRS On or After 

October 1, 1982 

A.	 Rule If the deceased employee was first employed under CSRS on or after 

October 1, 1982, a surviving spouse must make a deposit for the deceased 

employee's post-1956 military service to have the service credited in the 

computation of the survivor benefit from the commencing date. The 

deposit requirement applies whether or not the survivor is eligible for 

Social Security survivor benefits at the date of death or at any later date. If 

the deposit is made, the military service will be used to compute both CSRS 

and Social Security survivor benefits. 

NOTE:	 If the surviving spouse is eligible for a survivor annuity based on 

the minimum basic annuity provisions of the law (see section 

70A2.1-1, paragraph B), the exclusion of credit for post-1956 

military service may have no effect on the amount of survivor 

annuity payable. 

B. Reference For additional information on creditable military service and service credit 

payments for post-1956 military service, see Chapters 22 and 23. 

CSRS and FERS Handbook	 April, 1998 
24 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Subpart 70A4.4 Procedures 

Section 70A4.4-1 Procedures 

A.	 Agency A survivor must make the military deposit directly to the agency that 

Responsibility	 employed the deceased employee. To assist the survivor with the decisions 

relating to the military service, the agency must take the following actions. 

STEP ACTION 

1.	 Compute the survivor annuity with and without the post-1956 

military service. 

•	 If there is no rate difference (for example, the rate is based on 

the 40 percent minimum annuity) with or without military 

service, paying the deposit will not provide the survivor with 

any additional benefits. 

•	 If the rate is higher with the military service, and the decedent 

was first employed subject to CSRS before October 1, 1982, the 

survivor should contact the local office of the Social Security 

Administration (SSA) to see if he or she is entitled, or will be 

entitled in the future, to SSA benefits based on the deceased 

employee's service. If the survivor is not entitled, or will not 

be entitled in the future, to SSA benefits, making the deposit 

will not provide the survivor with any additional benefits. If the 

rate is higher with the military service, and the decedent was 

first employed subject to CSRS after September 30, 1982, the 

survivor must make the deposit to receive the higher benefit. 

2.	 Prepare four copies of OPM Form 1519, Survivor Military Service 

Election, by completing Part A. (A copy of the form is in 

Subchapter 70C.) 

•	 Go over the information in Part A and the information provided 

in the accompanying notice, "Information for the Survivor of a 

Deceased CSRS Employee." 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 25 

Chapter 70 

Section 70A4.4-1 Procedures (Cont.) 

A.	 Agency STEP ACTION 

Responsibility 

(Cont.) • Answer any questions the survivor has or direct him or her to 

the agency that can provide assistance. 

•	 Assist in obtaining any additional information needed (for 

example, estimated earnings during military service, verification 

of entitlement to military survivor benefits, etc.). 

3.	 Retain one copy of OPM Form 1519 and give three copies to the 

survivor. Have the survivor complete Part B (and Part C, if 

appropriate), sign, date, and return two copies to the agency. 

•	 If the survivor still is undecided or does not have sufficient 

information to make an informed election, the agency should not 

delay processing the SF 2800, Application for Death Benefits, 

or the SF 2806 pending receipt of the additional information. 

The survivor may note under "Other" in Part C of OPM Form 

1519 that the election is tentative or will be delayed pending 

receipt of additional information. 

NOTE:	 Final adjudication of the survivor benefit will be delayed 

pending receipt of an election. 

4.	 Attach one signed copy of OPM Form 1519 to the SF 2800. 

5.	 If the survivor decides to make the deposit, use the second signed 

copy of OPM Form 1519 to establish a deposit account. (See 

Chapter 23 for information on post-1956 military deposits.) 

NOTE:	 The deposit must be collected in one lump sum. 

6.	 Compute the amount of the military deposit the survivor owes. 

7.	 Prepare OPM Form 1514, Military Deposit Worksheet, for the 

survivor's deposit account. Do not delay processing the SF 2800 

and SF 2806 pending receipt of the deposit payment. When 

payment is received, prepare the SF 2806 as instructed in 

Chapter 23 and send it to OPM. 

CSRS and FERS Handbook	 April, 1998 
26 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A4.4-1 Procedures (Cont.) 

A. Agency 

Responsibility 

(Cont.) 

8. If the deceased employee began installment payments and the 

survivor has elected to make the deposit, but has not completed it 

by the time the regular SF 2806 is ready to send to OPM, close out 

the deposit account and send the SF 2806 for the military deposit to 

OPM with the decedent's other records. When the balance of the 

payment is received, prepare a new SF 2806 and send it to OPM. 

NOTE 1: The survivor annuitant must at least make a tentative 

election to make or not make the military deposit and a 

signed and dated copy of the OPM Form 1519 should be 

enclosed with SF 2800. 

NOTE 2: Refer to Chapter 23 for additional information on 

military deposit accounts; refer to Chapter 81 for 

instructions on how to complete SF 2806. 

NOTE 3: The agency should refer to part 70A5 for further 

information on processing survivor elections on post1956 military deposits when the employee was receiving 

military retired pay at time of death. 

B.	 Survivor The survivor must take the following steps to make a military deposit. 

Responsibility 

STEP ACTION 

1.	 The survivor must elect to make the deposit in writing by 

completing: 

•	 OPM Form 1519, Survivor's Military Service Election; and 

•	 SF 2803, Application to make Deposit or Redeposit (showing 

military service only). 

2.	 If there is insufficient documentation to determine the amount of the 

deposit due, the surviving spouse must send the form "Estimated 

Earnings During Military Service" to the appropriate military 

finance center. (See Chapter 23 for addresses.) The form should 

note: "Please expedite. Employee died (date)." 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 27 

Chapter 70 

Section 70A4.4-1 Procedures (Cont.) 

B.	 Survivor STEP ACTION 

Responsibility 

(Cont.) 3. If the survivor elects to make the deposit, he or she must pay the 

amount due in one lump sum. 

4.	 If the survivor later decides not to pay or complete the deposit to 

the agency, he or she must notify OPM in writing. Any partial 

deposits made will be refunded by OPM. 

5.	 If the deceased employee was receiving military retired pay at the 

time of death, the survivor may elect to exclude military service 

from the survivor annuity computation. (See part 70A5 for further 

information.) 

CSRS and FERS Handbook	 April, 1998 
28 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Part 70A5 Crediting Military Service - Military Retirees 

Subpart 70A5.1 General Information 

Section 70A5.1-1 Overview 

A.	 Introduction Prior to April 25, 1987, if a deceased employee was receiving military 

retired pay at date of death, his or her military service could not be used in 

the computation of the spousal survivor annuity benefit. Public Law 99-556 

(now 5 U.S.C. 8332 (c)(3)), enacted October 27, 1986, provided that, 

effective April 25, 1987, even if the employee was in receipt of military 

retired pay at the date of death, the military service must be used in the 

computation of spousal survivor benefits subject to certain conditions. 

This subchapter covers the special rules that apply under CSRS for 

crediting military service in the survivor benefit computation when the 

deceased employee was a military retiree. 

NOTE:	 See part 70A4 for a discussion of the rules for crediting the 

deceased employee's military service in the spousal survivor 

annuity computation. See Chapter 22 for a general discussion of 

creditable military service. 

B. Topics Covered	 This subchapter covers: 

•	 The rules that apply if the deceased employee was receiving military 

retired pay at time of death; 

•	 The factors that may affect a survivor annuitant's decision to credit or 

exclude military service from the spousal survivor annuity computation; 

and 

•	 The modifications in the procedures the employing agency and survivor 

annuitant must follow to make a deposit for creditable military service. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Spouse Benefits - Death of an Employee
 29 

Chapter 70
 

Section 70A5.1-1 Overview (Cont.) 

C.	 Organization of The CSRS part of this subchapter has three subparts. 

Part 

Subpart Name of Subpart Page 

70A5.1 General Information 32 

70A5.2 Rules for Crediting Military 

Service 32 

70A5.3 Procedures 35 

Part 70B5, describing the effect of military retired pay on survivor annuities 

under FERS, begins on page 48. 

D.	 Statement of This part is based on the laws and regulations cited below. 

Authority 

•	 United States Code: 5 U.S.C. 8332(c)(3) 

•	 Code of Federal Regulations: 5 CFR 831.301 and 5 CFR 831.2101­

2107 

CSRS and FERS Handbook	 April, 1998 
30 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Subpart 70A5.2 Rules for Crediting Military Service 

Section 70A5.2-1 General Rules 

A.	 Employees 

Receiving 

Military Retired 

Pay 

If an employee has not waived military retired pay for civil service 

retirement purposes, and dies in service on or after April 25, 1987, the 

employee's military service must be included in the computation of the 

CSRS spousal survivor annuity, provided the necessary deposit, if any, has 

been made. However, survivors (including former spouses) may elect to 

exclude such military service from the survivor annuity computation. (See 

70A5.3-1, paragraph B.) 

In making this election, the survivor will need to consider the factors 

presented in paragraphs B through F of this section which may affect the 

amount of the benefit. 

B.	 Offset by Amount 

of Military 

Survivor Benefits 

Payable 

If the survivor qualifies for CSRS survivor benefits including the decedent's 

military service, and the decedent elected a survivor benefit from the 

military, the military survivor benefit will not be affected by eligibility for 

CSRS survivor benefits. However, OPM must reduce the CSRS survivor 

annuity by an amount equal to the military survivor benefit. 

The amount deducted from the CSRS survivor benefit will not reduce the 

CSRS survivor annuity below the monthly benefit payable based on the 

civilian service alone (that is, OPM will pay the survivor at the rate payable 

for civilian service alone, if it is higher). 

EXAMPLE: Assume a survivor's CSRS annuity has been computed to be 

$1,800 per month after including the post-1956 military service in the 

computation. The survivor also will be receiving $800 per month in 

military survivor benefits. The CSRS survivor annuity without the military 

service has been computed to be $1,200 per month. 

Since the CSRS survivor benefit including the military service and reduced 

by the military survivor benefit ($1,800 - $800 = $1,000) is less than the 

survivor benefit based on the civilian service alone ($1,200), OPM will pay 

at the rate of $1,200 per month. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 31 

Chapter 70 

Section 70A5.2-1 General Rules (Cont.) 

C. Benefit 

Adjustments 

Once OPM has established the reduction in the CSRS survivor annuity (the 

amount of the military benefit at the time of death) further reductions will 

not be made for cost-of-living increases in the military survivor benefit. 

OPM will adjust the CSRS survivor annuity only when and if the survivor 

annuitant's military survivor benefit is affected because of his or her 

entitlement to benefits under title II of the Social Security Act (generally at 

age 62) or when the survivor becomes entitled to Social Security survivor 

benefits (generally at age 60). OPM will request new information from: 

•	 The Social Security Administration, at age 60, regarding entitlement to 

Social Security survivor benefits. If the survivor is entitled to Social 

Security survivor benefits based on the deceased employee's military 

service, OPM must reduce the survivor annuity by eliminating any post1956 military service for which a deposit has not been paid under 5 

U.S.C. 8334(j). 

•	 The appropriate military finance center, at age 62, regarding military 

survivor benefits payable. If the military survivor benefits are reduced 

because of benefits payable under title II of the Social Security Act, the 

amount of the CSRS survivor benefit will be adjusted accordingly. 

D.	 When Military The rules for crediting military service in section 70A5.2-1, are subject to 

Deposit is the general rules for making a deposit for post-1956 military service 

Required discussed in Chapter 23. 

1.	 No deposit is required to credit military service performed before 

January 1, 1957. Ordinarily, such service must be used in the 

computation of CSRS survivor benefits; however, see section 

70A4.2-1, paragraph B, regarding Social Security credit for pre-1957 

military service. 

2.	 For deceased CSRS employees who have post-1956 military service and 

were first employed in a position subject to CSRS retirement deductions 

before October 1, 1982, the survivor annuitant's eligibility 

CSRS and FERS Handbook	 April, 1998 
32 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A5.2-1 General Rules (Cont.) 

D. When Military for Social Security survivor benefits will affect whether the deposit must be 

Deposit is made for the post-1956 military service in order to have the service used in 

Required (Cont.) computing the CSRS survivor annuity. (See discussion in 

section 70A4.3-2.) 

3. For deceased CSRS employees who have post-1956 military service and 

were first employed in a position subject to CSRS retirement deductions 

on or after October 1, 1982, the deposit must be made for the post-1956 

military service in order to have the service used in computing the 

CSRS survivor annuity. 

E. Amount of
 

Deposit
 

If the surviving spouse elects to make the deposit for military service, he or 

she must pay 7 percent of the deceased employee's military base pay earned 

during the post-1956 military service (plus interest, if any). The employing 

agency must collect the amount due in one lump sum. 

> However, if military service interrupts civilian service on or after 

August 1, 1990, different deposit rules may apply. See Chapter 23. < 

April, 1998 CSRS and FERS Handbook 
 CSRS Spouse Benefits - Death of an Employee 33 

Chapter 70 

Subpart 70A5.3 Procedures 

Section 70A5.3-1 Procedures 

A.	 Agency 1. The agency must take the same actions described in section 70A4.4-1 to 

Responsibility process cases involving military retired pay that was not awarded: 

•	 Based on a service-connected disability (1) incurred in combat with 

an enemy of the United States or (2) caused by an instrumentality of 

war and incurred in the line of duty during a period of war as 

defined by section 301 of title 38; or 

•	 Based on chapter 1223 of title 10 (reserve retirement). 

2.	 In addition, the agency must: 

•	 Send the "Verification of Military Retired Pay Status for Survivors 

of Deceased Federal Employees" to the appropriate military finance 

center to verify the survivor's eligibility/ineligibility for military 

survivor benefits and the amount of the monthly benefit, if eligible, 

unless the survivor already has a document that provides this 

information (see subchapter 70C for a copy of the form and the 

addresses of military finance centers); and 

•	 Attach one signed copy of the election form and the documentation 

of the survivor's eligibility/ineligibility for military survivor 

benefits to the Application for Death Benefits (SF 2800). 

B.	 Survivor 1. If the survivor does not want military service included in the CSRS 

Responsibility	 survivor annuity computation, he or she must send OPM a written 

statement to that effect or use the box provided on OPM Form 1519, 

Survivor's Military Service Election. 

2. In making the decision to credit or exclude military service, the 

survivor should check with his or her Social Security Office to 

determine how Social Security benefits might be affected. 

3. See section 70A4.4-1, paragraph B, for the actions to be taken by the 

survivor in making the military deposit. 

CSRS and FERS Handbook	 April, 1998 
34 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Part 70A6 Office of Workers' Compensation Death Benefits 

Subpart 70A6.1 General Information 

Section 70A6.1-1 Benefits Payable 

A. OWCP Death 

Benefits 

If death of the employee results from injury or illness sustained in the 

performance of duty, compensation benefits may be payable. They are 

administered by the Department of Labor's Office of Workers' 

Compensation Programs (OWCP) under the Federal Employees' 

Compensation Act (FECA). A monthly compensation payment equal to a 

percentage of the monthly pay of the employee is payable to: 

C a widow or widower, if there are no children, at the rate of 50% of the 

deceased employee's salary. 

C a widow or widower, with child(ren), 45% and an additional 15% for 

each child not to exceed a total of 75% payment to widow or widower. 

C children, if there is no widow or widower, 40% for one child and 15% 

each additional child not to exceed a total 75%. 

C parents, if there is no widow, widower, or child(ren) -- the percentage 

is based on dependency of the parent on the employee at time of death 

(see 5 U.S.C. 8133 for percentage). 

C dependent brothers, sisters, grandparents, and grandchildren when there 

is no widow, widower, child, or dependent parent (see 5 U.S.C. 8133 

for percentage). 

Compensation is payable from date of death of the employee until: 

C a widow or widower remarries prior to age 55 or dies. 

C a child marries or becomes 18 years old (exception: if 18 and a fulltime student beyond high school or if incapable of self-support due to 

physical or mental condition, benefits continue). 

C a parent/grandparent dies, marries, or ceases to be dependent 

(5 U.S.C. 8133). 

C Compensation payments may not be reinstated if marriage ends. 

All related medical costs are covered in full. 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 35 

Chapter 70 

Section 70A6.1-1 Benefits Payable (Cont.) 

B.	 Funeral Expenses When an employee's death results from injuries sustained while performing 

official duty, a payment of up to $800 for funeral and burial expenses is 

authorized (5 U.S.C. 8134). Itemized funeral bills should be submitted to 

OWCP for consideration of payment or reimbursement. In addition, a $200 

allowance will be paid to a deceased employee's representative for 

reimbursement for costs in terminating the deceased's status as a Federal 

employee (5 U.S.C. 8133). 

C.	 Compensation 

Benefits and 

Federal 

Retirement 

Benefits 

The FECA prohibits payment of compensation and survivor annuity at the 

same time. This prohibition does not, however, prevent an individual from 

filing for both benefits. If both benefits are approved, the rules prohibiting 

dual benefits apply. If the surviving spouse and/or children of an individual 

who died as a result of a job-related disease or injury are eligible for both 

death compensation benefits from OWCP and CSRS or FERS survivor 

benefits (see section 70B6 for differences in application of FERS benefits), 

the survivor must elect which of the two benefits he or she wishes to 

receive. 

Most survivors will choose compensation benefits instead of a survivor 

annuity because compensation normally pays a higher amount. If the 

survivor elects compensation benefits he or she may also elect to receive a 

lump sum payment of the employee's contributions to the retirement fund. 

The lump sum is paid under a statutory order of precedence: first, to the 

designated beneficiary; if none designated, to the surviving spouse; if none, 

to the child or children and descendants of deceased children, by 

representation; if none, to any surviving parents; if none, to the duly 

appointed executor or administrator of the estate; if none, to the next of kin. 

If the employee was single and had no dependent children, there would be 

no survivor annuity benefit or lump sum payable under OWCP unless there 

are dependent parents, grandparents, brothers, sisters, and grandchildren. 

FECA specifies the percentage of salary used to determine each benefit 

according to the degree of dependence. If there was no former spouse 

eligible for CSRS benefits, a lump sum of the employee's retirement 

contributions would be paid to his or her survivors under the order of 

precedence. 

CSRS and FERS Handbook	 April, 1998 
36 CSRS Spouse Benefits - Death of an Employee 

Chapter 70 

Section 70A6.1-1 Benefits Payable (Cont.) 

D.	 Instances When 

OWCP Benefits 

Are Not Payable 

and CSRS 

Benefits Are 

E.	 Worksheet 

Developed to be 

Used in 

Completing 

Death Benefits 

Forms 

CSRS benefits are payable under certain circumstances where compensation 

benefits are not payable. For instance, CSRS benefits may be payable to a 

former spouse if a court order awarded them, but compensation is not 

payable to a former spouse. In addition, if a subsequent marriage (under 

age 55) terminates a widow or widower's survivor benefits, the CSRS 

benefit may be reinstated on the termination of that marriage (provided the 

survivor has not received a refund of CSRS deductions except in the case of 

financial settlement from a third party explained below), while the 

compensation benefit may not. 

A survivor eligible for both a CSRS survivor annuity and death 

compensation benefits from OWCP, whose compensation is suspended 

because he or she has received financial settlement from a third party 

directly responsible for the employee's death, may, since he or she is not in 

receipt of compensation, be paid a survivor annuity during the suspension 

period. Therefore, a survivor should postpone filing for the CSRS lump 

sum if he or she expects to file suit against a third party. 

> Evidence necessary to establish liability of a third party may not be 

readily available, and litigation can be a lenghty process. Consequently, 

current OPM policy is to permit survivors to receive a survivor annuity if a 

third party settlement occurs at a later date. < 

Because survivors of deceased employees may be eligible for as many as six 

kinds of payments based on the deceased employee's civilian service, a 

worksheet has been developed to compile all the information needed from a 

survivor; the worksheet can be used to complete all the other forms. A 

survivor(s) could be eligible for: -- 1) workers' compensation because of the 

work-related cause of death; 2) FEGLI; 3) CSRS or FERS for a lump sum 

payment of retirement contributions to the employee's credit unless a third 

party settlement is possible (we expect people to elect compensation since it 

pays more); 4) the deceased employee's Thrift account proceeds; 5) Social 

Security for FERS and CSRS Offset employees; and 6) unpaid 

compensation (salary) and lump sum leave from the employing agency. 

(Social Security enters information directly into its automated records when 

an applicant visits a Social Security office.) 

The worksheet should reduce repetitious questioning of survivors who are 

going through a very traumatic experience and make filling out multiple 

application forms that ask for much the same information less burdensome. 

The worksheet has the items that an applicant needs to complete (or an 

agency representative could obtain from the deceased employee's personnel 

records and by talking with the survivor). Then the agency can take the 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Spouse Benefits - Death of an Employee 37 

Chapter 70 

Section 70A6.1-1 Benefits Payable (Cont.) 

E.	 Worksheet 

Developed to be 

Used in 

Completing 

Death Benefits 

Forms 

F.	 New Death 

Gratuity Payment 

Authority 

completed worksheet, transfer the information to the appropriate 

applications, and present the survivor with completed forms that are ready 

to be signed. The worksheet is listed in subchapter 70C, Job Aids, and is 

included with the forms at the end of this Chapter. 

The worksheet instructions for CSRS and FERS applications provide that a 

number of items may be omitted as it is likely that survivors who are 

eligible for workers' compensation will want that benefit and a lump sum 

payment of retirement deductions. An election statement is provided in the 

Job Aids at the end of this Chapter for survivors who will be receiving 

compensation and want a lump sum payment of retirement deductions. 

>See the Job Aids at the end of this chapter to review the memorandum 

for heads of departments and independent agencies dated October 15, 

1996, concerning the new death gratuity payment authority. Also see 

the memorandum on the tax status of the gratuity dated February 20, 

1997. < 

CSRS and FERS Handbook	 April, 1998 
38 CSRS Spouse Benefits - Death of an Employee
 

Chapter 70
 

BLANK PAGE 

April, 1998 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 39 

Chapter 70 

Subchapter 70B FERS 

Part 70B1 General Information 

Section 70B1.1-1 Overview 

A.	 Introduction Subchapter 70B contains the rules and policies applicable to survivor 

benefits payable upon the death of an employee under the Federal 

Employees Retirement System (FERS). 

This subchapter explains how FERS differs from CSRS. It refers readers to 

the applicable CSRS rule or gives the FERS rule if different. 

B. Organization of The FERS subchapter has six parts. 

Subchapter 

Part Name of Part Page 

70B1 General Information 40 

70B2 Basic Death Benefit 42 

70B3 Survivor Annuity Benefit 48 

70B4 Procedures 50 

70B5 Crediting Military Service 52 

70B6 Office of Workers' 

Compensation Death Benefits 57 

C. Applicability of	 1. If an employee dies after having applied for retirement, including 

Subchapter	 disability retirement, but before final separation from the agency, the 

employee's death is a death in service and the information in this 

subchapter applies, even if the person's retirement would have been 

retroactively effective upon separation. 

2.	 If an employee dies after separation from the service and after applying 

for retirement, the information in Chapter 71 (Spouse Benefits - Death 

of an Annuitant) applies. 

3.	 If an employee dies after separation from the service and before 

applying for retirement, either Chapter 72 (Spouse Benefits - Death of a 

Former Employee) or Chapter 75 (Lump-Sum Benefits) applies. 

CSRS and FERS Handbook	 April, 1998 
40 Spouse Benefits - Death of an Employee	 FERS 

Chapter 70 

Section 70B1.1-1 Overview (Cont.) 

D.	 Applicable CSRS The following sections of subchapter 70A are entirely applicable to FERS 

Provisions employees: 

• Section 70A2.1-4: Lump-Sum Payment 

• Section 70A2.2-1: Duration of Survivor Benefits 

• Section 70A6.1-1: OWCP Death Benefits 

NOTE:	 Generally, the CSRS provisions explained in Part 70A6 apply to 

FERS employees except that the compensation benefits are 

reduced if the employee was covered under FERS and their 

survivors are eligible for Social Security benefits based on the 

employee's Federal employment. Also, the basic employee death 

benefit is not payable if the OWCP benefits are elected. 

E.	 Statement of This subchapter is based on the laws and regulations cited below. 

Authority 

• United States Code: 5 U.S.C. 8442(b)-(e) 

• Code of Federal Regulations: 5 CFR 843, Subparts B and C 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 41 

Chapter 70 

Part 70B2 Basic Death Benefit (Benefits Payable) 

Section 70B2.1-1 Eligibility Requirements for the Basic Employee Death Benefit 

A. General The basic employee death benefit is a benefit payable to the spouse of a 

deceased employee who met certain eligibility requirements at the date of 

death. 

B. Employee 

Requirements 

For the basic employee death benefit to be payable, a deceased employee 

must have: 

• Completed at least 18 months of creditable civilian service; and 

• Died while subject to FERS deductions. 

> Employee includes a person who had applied for retirement under FERS 

but had not been separated from the Federal service prior to his or her 

death, even if the person's retirement would have been retroactively 

effective upon separation. < 

C. Survivor 

Requirements 

The CSRS survivor requirements discussed in section 70A1.1-2, 

paragraph C, apply under FERS for both the basic employee death benefit 

and the survivor annuity benefit (Part 70B3) described below. The only 

exception is that the total spousal survivor annuity payable is 50 percent of 

an annuity computed as if the employee had retired optionally with no age 

reduction. 

D.	 Creditable In determining whether an employee completed 18 months of potentially 

Civilian Service creditable civilian service, include all prior: 

•	 Service included in a CSRS component, including refunded CSRS 

service; 

•	 CSRS Offset service for which the employee received a refund before 

becoming covered by FERS; 

•	 FERS service for which FERS retirement contributions remain to the 

employee's credit; and 

•	 Nondeduction service performed prior to January 1, 1989, regardless of 

whether a deposit for such service has been made. 

CSRS and FERS Handbook	 April, 1998 
42 Spouse Benefits - Death of an Employee	 FERS 

Chapter 70 

Section 70B2.1-1 Eligibility Requirements for the Basic Employee Death Benefit (Cont.) 

E.	 Noncreditable For purposes of the 18-month requirement, creditable civilian service does 

Civilian Service not include: 

1.	 Refunded FERS service; 

2.	 Nondeduction service performed on or after January 1, 1989; and 

3.	 Service performed on or after January 1, 1989, under another 

retirement system for Federal employees. Such service is not creditable 

under FERS for any purpose. The exception is service that is creditable 

under the Foreign Service Pension System (FSPS), provided that the 

survivor: 

•	 Waives credit for the service under the FSPS; and 

•	 Makes a deposit for the service. 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 43 

Chapter 70 

Section 70B2.1-2 Amount of Basic Benefit 

A.	 General The basic employee death benefit is: 

1.	 $15,000 (increased by all CSRS COLA's beginning December 1, 1987) 

plus 

2.	 50 percent of the employee's final salary (or high-3 average salary if 

higher). 

B. $15,000 Portion The $15,000 amount has increased to: 

Date Effective Amount CSRS COLA 

Percentage 

December 1, 1987 $15,630.00 4.2 percent 

December 1, 1988 $16,255.20 4.0 percent 

December 1, 1989 $17,019.19 4.7 percent 

December 1, 1990 $17,938.23 5.4 percent 

December 1, 1991 $18,601.94 3.7 percent 

December 1, 1992 $19,160.00 3.0 percent 

March 1, 1994 $19,658.16 2.6 percent 

March 1, 1995 $20,208.59 2.8 percent 

March 1, 1996 $20,734.01 2.6 percent 

> December 1, 1997 $21,783.34 2.1 percent< 

C.	 Fifty Percent of 1. To determine a full-time employee's final salary, use the employee's 

Final Salary basic pay as of date of death. (For an explanation of basic pay, see 

Amount Chapter 30.) 

2.	 For part-time employees, prorate the final salary according to the tour 

of duty that was in effect immediately before death; or, if it will 

produce a higher final salary, use the procedure described below for 

intermittent employees. 

3.	 For intermittent employees, multiply the final hourly rate by the 

number of hours worked in the last 52 weeks immediately preceding the 

end of the last pay period the employee was in a pay status. 

CSRS and FERS Handbook	 April, 1998 
44 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Section 70B2.1-2 Amount of Basic Benefit (Cont.) 

D. High-3 Average	 The high-3 average salary for basic employee death benefit purposes is 

Salary	 computed the same as for annuity computation purposes. (See 

Chapter 50.) 

If the employee has less than 3 years of service, the salary is simply 

averaged for the total period of service. 

E.	 Deposit Service If the employee has service prior to January 1, 1989, for which no 

retirement deductions were taken, and the deposit must be made to: 

•	 Meet the 18-month minimum service requirement for a death benefit, or 

•	 Achieve the 10 years of service necessary for a monthly survivor 

benefit, OPM will withhold that deposit from the basic employee death 

benefit payment. 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 45 

Chapter 70 

Section 70B2.1-3 Payment of the Basic Death Benefit 

A.	 Options The surviving spouse must elect whether to receive the basic employee 

death benefit in: 

1. One payment (see rollover information below); or 

2. 36 monthly installments. 

B. 

C. 

Election 

Installment 

Payments 

The survivor's election of one payment or 36 monthly installments is made 

on SF 3104B (formerly OPM Form RI 94-5) after the employing agency 

inserts the amounts payable. 

To determine the amount of each monthly installment, multiply the total 

amount of the basic employee death benefit by the factor appropriate for the 

date of death of the employee. The current factor for deaths occurring on 

or after October 1, 1987, is .0306921. 

D. 

E. 

Amount of 

Installments 

Stopping 

Installment 

Payments 

EXAMPLE: Basic Benefit $45,000.00 

Factor x .0306921 

Monthly Installment $ 1,381.14 

The total amount paid in 36 installments is slightly larger than a single 

lump-sum payment because it includes interest. 

The spouse may, at any time, elect to stop receiving the basic employee 

death benefit in installment payments and receive a lump-sum payment of 

the unexpended balance. The amount of the lump-sum payment will be less 

than the sum of the remaining payments because the interest stops on the 

date of the last payment. 

F. Death of Survivor If the survivor elects installment payments but dies before the completion of 

these payments, any unexpended balance is paid in a lump sum to the 

survivor's next of kin. The amount of the lump-sum payment will be less 

than the sum of the remaining payments because the interest stops on the 

date of the last payment. 

CSRS and FERS Handbook	 April, 1998 
46 Spouse Benefits - Death of an Employee	 FERS 

Chapter 70 

Section 70B2.1-3 Payment of the Basic Death Benefit (Cont.) 

G.	 Rollovers (Cont.) Spouses and former spouses have the opportunity to directly roll over 

taxable lump sums, including the Basic Employee Death Benefit, into 

Individual Retirement Arrangements (IRA's). If not rolled over, taxable 

lump sums paid directly to spouses and former spouses are subject to a 

mandatory 20 percent withholding for Federal income tax. Any surviving 

spouse or former spouse who appears to be eligible to receive a lump sum 

should be given the IRA Rollover Option Information, including the Death 

Benefit Payment Rollover Election Form. A sample form is at the end of 

this chapter, and it can be duplicated. 

The rollover election can be submitted with the application for benefits to 

expedite the IRA rollover election process, for those who would like to 

make their rollover election at the time they apply for death benefits. OPM 

will allow the election based on information provided by the agency. The 

latest revision of the FERS application form for death benefits, 

SF 3104B, includes the IRA rollover option in section 5. 

If no rollover election is made with the death benefits application, OPM 

will send the surviving spouse or former spouse of a deceased Federal 

employee the rollover election information, and an election form, after we 

compute the benefit. This takes 30 to 60 days after we receive the 

application and supporting documentation. 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 47 

Chapter 70 

Section 70B3.1-1 Eligibility for Survivor Annuity Benefit 

A.	 Employee In addition to the basic employee death benefit, a monthly survivor annuity 

Requirements is payable to a spouse if the employee: 

1.	 Completed at least 10 years of total creditable service; and 

2.	 Died while subject to FERS deductions. 

B. Creditable For the purposes of items 1 and 2 in paragraph A above, creditable civilian 

Civilian Service service is determined the same way as for the basic employee death benefit. 

(See section 70B2.1-1, paragraph D.) 

C.	 Creditable 1. For determining whether the employee completed 10 years of total 

Military Service	 service (item 2 in paragraph A above), use all active duty military 

service (subject to certain deposit requirements). See subchapter 70B5 

for information on deposits for post-1956 military service. 

2.	 Survivors of employees who were military retirees may receive credit 

for creditable military service even though, at the time of death, the 

employee had not waived his or her military retired pay. See 

subchapter 70B5 for information on military retired pay in death in 

service cases. 

CSRS and FERS Handbook	 April, 1998 
48 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Section 70B3.1-2 Amount of Survivor Annuity Benefit 

A. General A spousal survivor annuity is computed as if the employee retired 

optionally (with no age reduction) on the date of death. 

B.	 Computation-- The survivor receives 50 percent of the employee's basic annuity, based on 

Regular Formula	 the deceased employee's type of service, age, length of service, and high-3 

average salary at date of death. (See Chapter 50.) 

NOTE 1:	 For employees with a CSRS annuity component, the spouse 

receives 50 percent of the combined CSRS and FERS benefit. 

NOTE 2:	 See Chapter 21 for information about situations involving 

refunded or nondeduction service. 

NOTE 3:	 See part 70B5 for information about situations involving post1956 military service; see part 70B6 for information about 

situations in which the employee was in receipt of military 

retired pay at the date of death. 

C.	 Deceased Law 1. The spousal survivor annuity is 50 percent of the annuity computed 

Enforcement under the special formula for law enforcement officers, firefighters, and 

Officers, air traffic controllers if, at the date of death, the employee was: 

Firefighters, and 

Air Traffic • Age 50 or older and had at least 20 years of law enforcement and/or 

Controllers firefighter service, or 20 years of air traffic controller service; or 

•	 Was any age with at least 25 years of law enforcement and/or 

firefighter service, or 25 years of air traffic contoller service. 

2. If, at the date of death the employee did not meet the age and/or service 

requirements stated in paragraph C1 above, the spousal survivor 

annuity is computed under the regular formula described in section 

70B3.1-2B. 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 49 

Chapter 70 

Part 70B4 Procedures 

Section 70B4.1-1 Procedures 

A. Applicable CSRS The procedures under FERS are the same as under CSRS with the 

Provisions exceptions noted below. 

B.	 Exceptions: 1. The application for death benefits is SF 3104. 

Forms 

2.	 The new SF 3104B (Documentation and Elections in Support of 

Application for Death Benefits when Deceased was an Employee at the 

Time of Death), includes: 

•	 Certified Summary of Federal Service 

•	 Basic Employee Death Benefit Election Form and Rollover Option 

•	 Health Benefits Election Form 

•	 Post-1956 Military Service Election Form 

•	 Agency Checklist. 

CSRS and FERS Handbook	 April, 1998 
50 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Section 70B4.1-2 Advice to Surviving Spouse 

A.	 Benefits Payable The benefits to a surviving spouse in a death in service case are very 

different from the benefits payable in an optional retirement or disability 

retirement case. This is especially true when the employee has less than 10 

years of service and no survivor annuity is payable. 

B. Alternative As in CSRS, the alternative annuity is not available in a FERS death in 

Annuity service case. 

C. Direct Payment
 

of FEHB
 

Premiums
 

The health and life insurance counseling points discussed in CSRS section 

70A3.1-2 are entirely applicable under FERS with the following exception: 

EXCEPTION:	 The surviving spouse who is eligible for the basic 

employee death benefit but who is not eligible for a 

survivor annuity because the employee had less than 10 

years of service may continue health benefits coverage by 

making direct premium payments to OPM. In addition, 

the survivor may make direct payments if the annuity is 

inadequate to pay the FEHB premium. (See The Federal 

Employees Health Benefits Handbook for Personnel and 

Payroll Offices (formerly FPM Supplement 890-1.) 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 51 

Chapter 70 

Part 70B5 Crediting Military Service 

Subpart 70B5.1 General Information 

Section 70B5.1-1 Overview 

A.	 Introduction Part 70B5 contains the special rules and policies applicable to military 

deposits made by survivor annuitants under the Federal Employees 

Retirement System (FERS). 

This part explains how FERS differs from CSRS. It refers readers to the 

applicable CSRS rule or gives the FERS rules if different. 

B. Organization of The FERS part of this subchapter has four subparts. 

Subpart 

Subpart Name of Subpart Page 

70B5.1 General Information 52 

70B5.2 Military Service Performed On 

or After January 1, 1957 53 

70B5.3 Crediting Military Service ­

Military Retirees 54 

70B5.4 Procedures 56 

C.	 Applicable CSRS 

Provision 

D.	 Statement of 

Authority 

The following CSRS subpart is applicable to survivor annuitants under 

FERS with the exception of the form numbers. The FERS "Application for 

Death Benefits" is SF 3104. The "Survivor's Military Service Election" is 

included in the new SF 3104B. 

• Subpart 70A4.2: Military Service Performed Before January 1, 1957 

This part is based on the laws and regulations cited below. 

• United States Code: 5 U.S.C. 8411(c)(4) 

• Code of Federal Regulations: 5 CFR 842.306 and 842.307 

CSRS and FERS Handbook	 April, 1998 
52 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Subpart 70B5.2 Military Service Performed On or After January 1, 1957 

Section 70B5.2-1 Post-1956 Military Service in CSRS Annuity Component 

A.	 General Rule 1. Military deposits made by survivor annuitants are credited in the CSRS 

component of a FERS benefit (see Chapter 50, Computation of Annuity 

Under the General Formula) if: 

•	 the deceased employee had 5 or more years of civilian service 

potentially creditable under CSRS (other than CSRS Interim or 

Offset service) prior to FERS coverage; and 

•	 the military service was performed before the deceased employee 

was covered by FERS. 

2.	 If both the preceding conditions are met, the service will be credited 

under the CSRS rules outlined in subpart 70A4.3. 

•	 If the deceased employee was first employed subject to CSRS 

retirement deductions before October 1, 1982, the rules in section 

70A4.3-2 apply. 

•	 If the deceased employee was first employed subject to CSRS 

retirement deductions on or after October 1, 1982, the rules in 

section 70A4.3-3 apply. 

NOTE:	 If the deceased employee was receiving military retired pay 

at the time of death, see subpart 70B5.3. 

B. Amount of The amount of the military deposit is 7 percent of military basic pay (plus 

Deposit interest, if any), if the deceased employee transferred to FERS and the 

military service is part of the CSRS component of the survivor annuity. 

(See Chapter 23.) 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 53 

Chapter 70 

Section 70B5.2-2 Post-1956 Service Under FERS Rules 

A.	 General Rule Unless the deposit is made, the survivor will not receive credit for the post1956 military service for any purpose if: 

1.	 The military service was performed after the decedent became covered 

by FERS; or 

2.	 The deceased employee had less than 5 years of civilian service 

potentially creditable under CSRS (other than CSRS Interim or Offset 

service) upon becoming covered by FERS. 

B.	 Effect of Military Payment or non-payment of the military deposit by the survivor annuitant 

Deposit on Basic will not affect the FERS Basic Death Benefit, which is discussed in part 

Death Benefits 70B2 above. 

C.	 Effect of Military 

Deposit on 

Survivor Annuity 

D.	 Amount of 

Deposit 

Payment or non-payment of a military deposit may affect the amount and/or 

payment of the FERS spousal survivor annuity. 

EXAMPLE 1: Assume a deceased employee had 10 years of Federal 

civilian service under FERS and 5 years of post-1956 military service for 

which a deposit is owed but not paid. 

If the surviving spouse elects not to make the military deposit, the survivor 

annuity will be computed based on 10 years of service. If the survivor 

makes the deposit, the survivor annuity will be computed based on 15 years 

of service. 

EXAMPLE 2: Assume a deceased employee had 6 years of Federal 

civilian service under FERS and 5 years of post-1956 military service for 

which a deposit is owed but not paid. 

If the surviving spouse elects not to make the deposit, no survivor annuity 

is payable. If the survivor makes the deposit, the combined civilian and 

military service enable the survivor to meet the 10-year service requirement 

for payment of a FERS spousal survivor annuity. (See part 70B3 above.) 

The amount of the deposit is 3 percent of the deceased employee's military 

basic pay plus interest, if the service is credited under FERS rules. > 

However, if military service interrupts civilian service after August 1, 

1990, different deposit rules may apply.< (See Chapter 23.) 

CSRS and FERS Handbook	 April, 1998 
54 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Subpart 70B5.3 Crediting Military Service - Military Retirees 

Section 70B5.3-1 General Rules 

A.	 Employees If an employee covered by FERS has not waived military retired pay for 

Receiving retirement purposes, and dies in service on or after April 25, 1987, the 

Military Retired same rules that are applicable to CSRS spousal survivor annuities 

Pay (70A5:2-1A, B, and C) apply to FERS spousal annuities. 

B.	 When Military The rules for crediting military service under this section are found in 

Deposit is subpart 70B5.2. 

Required 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 55 

Chapter 70 

Subpart 70B5.4 Procedures 

Section 70B5.4-1 Procedures 

A. Applicable CSRS The procedures under CSRS section 70A4.4-1 and 70A5.3-1 are applicable 

Provisions under FERS, with the exception of the forms noted below. 

B. Forms 1. The "Application for Death Benefits" is SF 3104. 

2.	 The "Survivor's Military Service Election" is part of SF 3104B. 

3.	 The "Application to Make Service Credit Payment for Civilian Service" 

is SF 3108. 

4.	 The "Individual Retirement Record" is SF 3100. 

CSRS and FERS Handbook	 April, 1998 
56 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Part 70B6 Office of Workers' Compensation Death Benefits 

Subpart 70B6.1 General Information 

Section 70B6.1-1 Benefits Payable 

A.	 OWCP Death 

Benefits 

Compared to 

FERS Benefits 

If the death of the employee results from injury or illness sustained in the 

performance of duty, compensation benefits may be payable. They are 

administered by the Department of Labor's Office of Workers' 

Compensation Programs (OWCP) under the Federal Employees' 

Compensation Act (FECA). OWCP benefits payable to a FERS employee 

are the same as to a CSRS employee as described in part 70A6, except as 

explained below: 

As under CSRS, the survivors must choose between death compensation 

benefits from the Department of Labor and FERS survivor benefits. If they 

elect workers' compensation death benefits, they may also elect to receive a 

lump sum of the employee's retirement contributions plus interest. The 

same order of precedence applies under FERS. If OWCP is elected, no 

survivor annuity benefit nor the basic employee death benefit would be 

payable. (See the comprehensive worksheet at the end of this chapter 

concerning OWCP election.) 

> OWCP payments are reduced by the amount of any Social Security 

survivor benefits attributable to the deceased employee's Federal service 

while under FERS coverage. < 

April, 1998	 CSRS and FERS Handbook 
Spouse Benefits - Death of an Employee FERS 57 

Chapter 70 

Subchapter 70C Job Aids 

Section 70C1.1-1 Forms 

This subchapter contains copies of the following forms and worksheet (all 

are authorized for local reproduction): 

Number Title 

SF 2800A Agency Certification for Death in Service 

OPM Form 1519 Survivor's Military Service Election 

RI 25-45 Verification of Military Retired Pay Status for Survivors 

of Deceased Federal Employees (see Chapter 23, 

RI 20-97 for addresses of military service finance 

centers) 

Worksheet to be Used in Completing Forms for Death Benefits 

> Death Benefit Payment Rollover Election Form and Information < 

CSRS and FERS Handbook April, 1998 
58 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

CSRS 

Agency Certification for Death in Service 

See CSRS and FERS Handbook 

for instructions 

Deceased employee's name (Last, first, middle) Date of birth (mo, dy, yr) Social Security Number 

Section A - Federal Employee's Compensation Information 

1. Did the deceased ever apply for or receive benefits from the Office of Workers' Compensation ~ Yes6 Complete 1a-3 below

Programs (OWCP), Department of Labor because of job-related illness or injury? ~ No6 Go to Section B 

a. Compensation Claim Number b. Benefit Received c. Type of Benefit 

Fr. (mo, dy, yr) To (mo, dy, yr) 

Scheduled award 

Total or partial disability compensation 

Scheduled award 

Total or partial disability compensation 

2. If the deceased applied for workers' compensation (Other than as listed in item 1a above) but did NOT receive benefits, check reason below and 

give the information requested. 

a. Compensation Claim Number GAwaiting OWCP decision 

GClaim deniedxxxxxxxxxxv 

b. Date claim denied 

3. Except for scheduled compensation awards, workers' compensation and Civil Service retirement benefits CANNOT be paid for the same period of 

time. Please complete information below. 

a. Did the above employee's death occur due to a work-related injury? Yesv Complete 3b-d below 

Nov Go to Section B 

b. Has a claim for workers' compensation

based on this death been filed? 

Yesxxxxxxxxxxxxv 

Nov Go to Section B

c. Name of person filing for death benefits 

d. Compensation Claim Number Awaiting OWCP decision 

Claim deniedxxxxxxxxxxv

e. Date claim denied 

Section B - Federal Employees' Health Benefits and Group Life Insurance Program Information 

1. Was the deceased employee enrolled in the Federal Employees'

 Health Benefits Program at the time of death? 

Yesxxv 

No 

Enrollment Code 

2. Was the deceased enrolled in the Federal Employee's Group Life

 Insurance Program at the time of death? 

Yes 

No 

Section C - Checklist 

1. Are the following documents attached?

Indicate by "X" for each item 

Attached Not 

Attached 

Attached Not 

Attached 

Sent to 

OWCP

a. SF 2800ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ

b. Death Certificateÿÿÿÿÿÿÿÿ

c. Marriage Certificateÿÿÿÿÿ

d. Divorce Decreeÿÿÿÿÿÿÿÿÿÿÿ

e. Children's Birth Certificatesÿÿ

f. Medical Documentation (Disabled Children) 

g. Court appointmentsÿÿÿÿÿÿÿ 

h. SF 2801-1*ÿÿÿÿÿÿÿÿÿÿ 

i. OPM 1519*ÿÿÿÿÿÿÿÿÿÿÿ 

j. All SF 2809's in OPFÿÿÿÿÿ 

k. SF 2810* Transferring to retirement 

systemÿ 

l. All other SF 2810's in OPFÿÿÿÿ 

2. List any documents attached which are not listed above 

I certify that the above accurately reflects verified information in official records. 

1. Signature 2. Date 3. Address 

4. Official title 

5. Person to contact for further information (Print or type) 6. Telephone Number (including area code) 7. Submitting Office Number (SON) 

Section D - Certification By Personnel Officer (or Designee) 

SF 2800 - Application for Death Benefits *SF 2809 - Health Benefits Registration Form 
Spouse Benefits - Death of an Employee FERS 59
 

Chapter 70
 

SF 2801-1 - Certified Summary of Federal Service SF 2810 - Notice of Change in Health Benefits Enrollment OPM 1519 - Surviving Spouse's Military Deposit Election Complete Reverse Side SF 2800A 

AUTHORIZED FOR LOCAL REPRODUCTION April 1986 
 

60 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Part 2 - Payroll Office Checklist: To be completed by office maintaining Individual Retirement Record (SF 2806) 

1. Does SF 2806 for deceased employee named on the other side contain

 all information necessary to comply with instructions in Chapter 81

 of the CSRS and FERS Handbook? 

G Yes G No - Explain in item 8 

2. Is deceased employee's sick leave balance shown on SF 2806? 

G Yes G No - Explain in item 8 

3. Is deceased employee's last day in pay status shown on SF 2806? 

G Yes G No - Explain in item 8 

4. Is deceased employee's health benefits status posted on SF 2806? 

G Yes G No - Explain in item 8 

5. If a former spouse of the deceased employee was making direct health benefit premium payments to your payroll office, has the SF 2806 been

 property annotated? 

G Not Applicable G Yes G No - Explain in item 8 

6. Has the SF 2806 been properly annotated concerning deposit for post-56 military service? 

G Yes G No - Explain in item 8 

7. Disposition of SF 2806: SF 2806 and Register of Separations and 

G Transfers (SF 2807) are attached G SF 2806 was forwarded as shown below: 

Forwarded to: SF 2807 Number Date of SF 2807 

8. Remarks 

9. Certification by Payroll Office or Designee

 I certify that the above accurately reflects official records maintained by this office. 

a. Signature b. Date c. Address 

d. Official title 

e. Person to contact for further information (Print or type) f. Telephone Number (including

 area code) 

g. Payroll Office Number 

SF 2800A (Back) April 1986 

AUTHORIZED FOR LOCAL REPRODUCTION 
 

Spouse Benefits - Death of an Employee FERS 61 

Chapter 70 

SURVIVOR'S MILITARY SERVICE ELECTION 

Deceased Employee Covered by CSRS or CSRS Offset 

Part A - To be completed by employing agency 

1. Employee's name 2. Date of birth 3. Social Security 

number 

4. Is survivor eligible for an annuity based on the minimum basic 

annuity? 

G Yes (Complete item 4a) G No, annuity will be based 

on actual service 

4a. If item 4 is "yes," would loss of credit for post1956 military service reduce the amount of the 

annuity? 

G Yes G No 

5. Was a deposit account opened for the employee? G Yes, complete information below G No 

Period of Military Service Amount due (with 

interest)

Amount paid by 

employee

Balance due

From To 

6. Agency records show the above named deceased employee was first employed under the Civil Service Retirement 

System(CSRS) and had post-1956 military service for which a deposit has not been made or has not been completed. 

G before October 1, 1982 G on or after October 1, 1982 

7. Agency representative to contact for information Telephone number 

8. Agency personnel office address to which form should be returned Election must be received by (date) 

Part B - To be completed by survivor 

Our records indicate that you might be eligible for a civil service survivor annuity. You have the right to make a deposit 

for the deceased employee's post-1956 military service. Your decision may affect your rights under CSRS. Read the 

attached "Information for the Survivor of a Deceased CSRS Employee..." carefully to be sure you understand the 

consequences of not making the deposit for military service. Then make your election, sign and date the form, and 

return two (2) copies to the address shown in item 8 above. If you have decided to pay the deposit, we will provide 

you with the necessary information. Payment must be made in a lump sum to this agency before the Office of 

Personnel Management completes its adjudication of your application for survivor benefits. 

Survivor Election - I have read the information concerning my right to make a lump sum deposit to the decedent's 

employing agency for post-1956 military service. 

G I elect to make (or complete) the deposit to the 

employing agency for the decedent's post-1956 military 

service. I understand that this deposit must be paid to the 

agency in a lump sum. (Note: The election may be 

changed at any time before the deposit is actually paid to 

the agency.) 

G I elect not to make (or complete) the deposit for post1956 military service. I understand this decision is 

irrevocable. 

Part C - To be completed by survivor of deceased employee in receipt of military retired pay at the time of death 

If the deceased employee received military retired or retainer pay that was (1) not awarded because of a serviceconnected disability incurred either in combat with an enemy of the United States or caused by an instrumentality of

war and incurred in the line of duty during a period of war, or (2) awarded under reserve retiree provisions (chapter 67

of title 10, United States Code), you will receive credit for the military service subject to the rules for post-1956

military deposits. However, if you do receive credit for military service (including any pre-1957 military service), your

CSRS survivor benefit must be reduced by the amount of any military survivor benefits payable to you. In some 

instances, it may be advantageous to receive a survivor benefit including the military service in the computation. In 

order to advise you about the survivor annuity benefits, we need to know if you are eligible for military survivor

benefits. Your documentation or verification of your entitlement to military survivor benefits should be attached as

indicated. 

G I have attached verification of my eligibility or ineligibility for military survivor benefits. (Specify monthly amount, if known $____________.) 

Survivor Election - To exclude military service from the computation of your survivor annuity, etc., check the appropriate box below. 

G I elect to exclude the decedent's military service from my survivor annuity. G Other (Specify here or on a separate sheet of paper). 

Signature Date 

Office of Personnel Management OPM Form 1519 
62 Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Rev. January 1991 
Spouse Benefits - Death of an Employee FERS 63 

Chapter 70 

(OPM Form 1519 continued) 

Information for the Survivor of a Deceased CSRS Employee
 

About Service Credit for Post-1956 Military Service
 

Because your decision about completing the deposit for or including the deceased employee's military service in 

the survivor annuity computation may affect your rights under the Civil Service Retirement System (CSRS), you 

need to be aware of the following information. 

A.	 If The Deceased Employee Was First Employed Under CSRS Before October 1, 1982 

1. Optional Deposit 

a. If you qualify at the employee's death for social security survivor benefits based on his or her 

service, you have the option of either making the deposit and the post-1956 military service 

will be included in the CSRS survivor annuity computation, or not making the deposit and the 

post-1956 military service will be excluded from the CSRS survivor annuity computation. 

b. If you will qualify at a future date for social security survivor benefits based on the decedent's 

service, post-1956 military service will be included in the computation of your CSRS survivor 

annuity until you become entitled (or would upon application be entitled) to social security 

benefits. You have the option of either making the deposit now and avoiding the reduction in 

your CSRS survivor annuity, or not making the deposit and having your CSRS annuity 

adjusted to exclude post-1956 military service when you become eligible for social security 

benefits based on the decedent's service. 

2. Eligibility for Social Security 

A survivor of a deceased employee may be eligible for social security survivor benefits if the 

employee was "fully insured" and the survivor is (a) the parent of an eligible child, (b) age 50 or 

over and disabled, (c) age 60 or over, or (d) a divorced spouse age 62 or over. For information 

about your present or future eligibility for social security survivor benefits, contact the Social 

Security Administration. NOTE: If you become ineligible for social security survivor benefits based 

on the deceased employee's service (e.g., by becoming eligible for social security benefits based on 

your own earnings which exceed the survivor benefits), you should contact OPM. You may be 

eligible to have the military service restored to the survivor annuity computation. 

B.	 If the Deceased Employee Was First Employed Under CSRS After September 30, 1982, no credit 

is allowed for post-1956 military service unless a deposit is made for the service. 

C.	 Factors that May Affect Creditability of Military Service Regardless of When the Deceased Was 

First Employed 

1.	 Minimum Basic Annuity Provisions 

If you are eligible for a CSRS survivor annuity based on the minimum basic annuity provisions of the 

law, it is possible that the exclusion of credit for post-1956 military service will have no effect on 

the amount of your annuity. (See items 4 and 5 in Part A of this form. If you need more 

information about how you may be affected, contact the decedent's employing agency 

representative in item 7 of Part A of this form. 

2.	 Effect of Military Retired Pay 

a. If, at the time of death, the employee was receiving military retired or retainer pay that was 

(1) awarded because of a service-connected disability incurred either in combat with an enemy of 

the United States or caused by an instrumentality of war and incurred in the line of duty during a 

period of war, or (2) awarded under the reserve retiree provisions (chapter 67 of title 10, United 

States Code), you will receive credit for the military service subject to the provisions for military 

deposit for post-1956 military service. 

Page 2 of 3
 

OPM Form 1519
 
64 Spouse Benefits - Death of an Employee	 FERS 

Chapter 70 

(OPM Form 1519 continued) 

b. If, at the time of death, the employee was receiving military retired or retainer pay that was 

not awarded under either of the two exceptions noted in C.2.a. above, you will also receive credit 

for the military service subject to an important difference in the computation of the benefits 

described below. (1) If your deceased spouse arranged for you to receive a military survivor 

benefit, your CSRS survivor benefit will be reduced by the amount of the military benefit. Since 

this reduction will never be greater than the value of the military service under the CSRS benefit 

computation, your are not disadvantaged by this requirement with respect to your CSRS benefit. (2) 

If you feel that it is not to your advantage to include the military service in the computation of your 

CSRS survivor benefit, you may send OPM your written election not to include the military service 

in your CSRS survivor annuity computation now. (See Part C of "Survivor Election.") 

D.	 Information About Deposit for Military Service 

1. The amount of deposit is 7 percent of military basic pay (plus interest, if any). 

2. If the deposit is made, the post-1956 military service will be credited under both the civil service 

and the social security systems, if it is otherwise creditable. 

E.	 If You Are the Survivor of a Reemployed Annuitant 

1. If the deceased employee was reemployed while annuity payments were continuing and had less 

than 5 years of service as a reemployed annuitant at the time of death, you are not eligible to make 

a deposit for the military service. 

2. If the deceased employee had 5 or more years of service as a reemployed annuitant and you elect a 

recomputation of the annuity under the law in effect at the time of death, you may make a deposit 

for post-1956 military service. However, if you elect a recomputation of the annuity, a deposit 

must also be made to cover any of the decedent's service as a reemployed annuitant for which no 

retirement deductions were made. Before you make your deposit ask the decedent's employing 

office for information about how a recomputation will affect your annuity. 

F.	 If You Elect To Pay the Deposit 

1. If you do not have sufficient documentation of military basic pay earnings for the employing agency 

to determine the amount due, the agency will tell you how to obtain an estimate of earnings from 

the branch of military service in which the decedent served. 

2. You should make payment to the agency as soon as possible. The agency will not delay processing 

of your application for death benefits while you are waiting to receive an estimate of military 

earnings from the military service. If you have not made the deposit before the agency sends the 

application to OPM, the agency will tell OPM that you plan to pay the deposit. 

3. In order to credit your deposit, OPM must receive documentation of your payment from the agency 

before your application is completely adjudicated. 

4. If you elect to pay the deposit, but later decide not to do so, promptly notify the employing agency 

and OPM in writing so that OPM can complete final adjudication of your application for survivor 

benefits. 

Page 3 of 3
 

OPM Form 1519
 
 

 CSRS Spouse Benefits - Death of an Employee FERS 65 

Chapter 70 

Verification of Military Retired Pay Status 

for Survivors of Deceased Federal Employees 

Deceased employee's name 

Social Security number 

This is a request for assistance in verifying the status of a surviving or former spouse of a deceased 

Federal employee, in regards to survivor benefits (SBP, RSFPP, etc.) from a uniformed service. To 

expedite the Office of Personnel Management's (OPM) processing in this case, we request that your 

reply be forwarded to the address shown, not later than . 

The individual named above and on the reverse was a civilian employee of the Federal Government 

who was receiving military retired pay on the date of death shown on the reverse. The decedent's 

surviving or former spouse, also named on the reverse, is applying for survivor annuity under the Civil 

Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Under 

provisions of 5 U.S.C. 8332(c)(3) for CSRS and 5 U.S.C. 8411(c)(4) for FERS, the surviving or 

former spouse is entitled to receive credit for the decedent's military service in the computation of the 

civil service survivor annuity despite the fact that the military retired pay was not waived before the 

date of death. However, a survivor annuitant's benefits must be offset by any amount he or she is 

entitled to receive based on the decedent's military service from a retirement system for members of 

uniformed services. Consequently, before OPM can complete adjudication of the survivor's 

application, we need to know if he or she is eligible for survivor's (other than a child's) benefits based 

on the decedent's military service. 

If the surviving or former spouse is eligible, we also need to know the gross amount payable monthly 

as of the date the survivor benefit commences, so that OPM may offset the monthly annuity by that 

amount. 

Your assistance in this matter is greatly appreciated. 

Sincerely, 

Return this form to: 

(over) 

REPRODUCE LOCALLY RI 25-45 

November 1990 
 

 

66 CSRS Spouse Benefits - Death of an Employee FERS 

Chapter 70

Verification of Military Retired Pay Status 

for Survivors of Deceased Federal Employees 

The following information is provided on the deceased employee: 

Name Date of birth 

Social security number Date of death 

The following information is provided on the applicant for survivor benefits: 

Name Social security number Date of birth 

OPM needs the following information: 

$

$ 

Nature of Retirement (Please check the appropriate block) 

G Retirement for length of service 

G Retirement for disability incurred in combat with an enemy of the United States; or caused by an

instrumentality of war incurred in line of duty during a period of war (see 38 U.S.C. 301).* 

G Retirement for disability incurred by means other than those listed above 

G Retirement from the Reserves at age 60, under chapter 67 of title 10, United States Code, section

1331.* 

G Retirement for reasons other than those listed above. Please specify:

* Note: If retirement was for one of the two reasons marked with an asterisk, complete only the 

certification below. 

Survivor Benefit Election (Please fill in the appropriate information) 

G The deceased elected a survivor benefit plan 

Type of program G SBP G RSFPP 

Gross monthly benefit as of date of death** 

Social Security Offset amount, if any 

Gross monthly benefit after SSA offset 

G The deceased did not elect a survivor benefit plan

** Note: It is immaterial whether the total monthly survivor benefit is actually being paid or not. With the 

exception of Social Security benefits attributable to the decedent's post-1956 military service, OPM must

reduce the survivor's annuity by the total uniformed services benefits payable before any offsets or

reductions. 

Certification 

Certified by (signature) Date 

Title Phone number 

Department
 CSRS Spouse Benefits - Death of an Employee FERS 67 

Chapter 70 

REPRODUCE LOCALLY Page 2 RI 25-45 

November 1990 

Worksheet to be Used in Completing the Following Forms for Death Benefits: 

Standard Form 2800, Application for Death Benefits (CSRS) 

Standard Form 2800A, Agency Certification for Death in Service 

Standard Form 3104, Application for Death Benefits (FERS) 

OPM Form 1519, Survivor's Military Service Election 

RI 25-45, Verification of Military Retired Pay Status for Survivors of Deceased Federal Employees 

FE-6, Claim for Death Benefits (Life Insurance) 

TSP-17, Application for Account Balance of Deceased Participant 

Standard Form 1153, Claim for Unpaid Compensation 

Form CA-5, Claim for Compensation by Widow, Widower, and/or Children 

Statement Signed by Applicant Electing OWCP Benefits Instead of Survivor Annuity from OPM 

In many cases, survivors of deceased employees may be eligible for as many as six kinds of payments 

based on the deceased employee's civilian service -- 1) workers' compensation if the death is work-related; 

2) FEGLI; 3) CSRS or FERS; 4) the deceased employee's Thrift account proceeds; 5) Social Security for 

FERS and CSRS Offset employees; and 6) unpaid compensation (salary) and lump sum leave from the 

employing agency. 

To minimize the burden of asking survivors who are going through a very traumatic period to fill out 

multiple application forms that ask for much the same information, we have created a comprehensive 

worksheet to cover the OWCP, CSRS, FERS, TSP, and unpaid compensation (salary) applications. Since 

many of the death benefits forms require the same information, the completed information worksheet can 

be used to fill in all the forms required for filing for benefits. (Social Security enters information directly 

into its automated records when an applicant visits a Social Security office.) 

The worksheet has the items that an applicant needs to complete (or an agency representative could obtain 

from the deceased employee's personnel records and by talking with the survivor). Then the agency can 

take the completed worksheet, transfer the information to the appropriate applications, and present the 

survivor with completed forms that are ready to be signed. The worksheet is listed in subchapter 70C, Job 

Aids, and is included with the forms at the end of this Chapter. 

The worksheet instructions for CSRS and FERS applications provide that a number of items may be 

omitted. This is because survivors who are eligible for workers' compensation will want that benefit and a 

lump sum payment of retirement deductions. An election statement is provided in the Job Aids at the end 

of this Chapter for survivors who will be receiving workers' compensation and want a lump sum payment 

of retirement deductions. 
68 CSRS Spouse Benefits - Death of an Employee	 FERS 

Chapter 70 

Worksheet to be Used in Completing the Following Forms for Death Benefits: (Cont.) 

Information Needed on Deceased 

1.	 Name 

2.	 Social Security Number 

3.	 Date of Birth 

4.	 Date of Death 

5.	 Legal residence at time of death 

6.	 Agency name, address, and phone number 

7.	 Prior marriages? If No, go to Applicant's section; otherwise, list former spouses, date(s) 

marriage terminated and how marriage terminated. 
 

 CSRS Spouse Benefits - Death of an Employee FERS 69 

Chapter 70 

Worksheet to be Used in Completing the Following Forms for Death Benefits: (Cont.) 

Information Needed on Applicant (if spouse) 

1. Name and address 

2. Date of Birth 

3. Social Security Number 

4. Date of Marriage 

5. Place of Marriage 

6. Marriage was performed by G Clergy or Justice of Peace G Other 

7. How many times were you married? 

8. Give name of each spouse 

9. How was marriage terminated? 

10. Date marriage terminated. 

Information Needed about Children 

(if applicable) 

List all employee's children, giving date of birth, address if different from deceased, relationship 

to deceased (i.e., child of marriage, adopted child, step child, recognized natural child, etc.), and 

Social Security Number. 
 

 

 

 

 

 

 

 

70 CSRS Spouse Benefits - Death of an Employee FERS 

Chapter 70 

Worksheet to be Used in Completing the Following Forms for Death Benefits: (Cont.) 

Miscellaneous Questions 

Standard Form 2800 - Application for Death Benefits (CSRS) 

Is there a child of the deceased not yet born? G Yes G No 

Are you a citizen of the U.S. G Yes G No 6 What country are you a citizen of? 

Relationship to deceased 

If spouse is applying, do not complete sections C, D, E, or F. 

FE-6 - Claim for Death Benefits (Life Insurance) 

Relationship to deceased 

Was the deceased on active duty in the military at the time of death? 

Was deceased survived by any children? G Yes G No 

Were you living with the deceased at the time of death? G Yes G No 

Daytime Phone (Area Code and Number) 

If spouse is applying, do not complete sections D or E. 

TSP 17 - Application for Account Balance of Deceased Participant 

Relationship to deceased 

Daytime Phone (Area Code and Number) . 

Standard Form 3104 - Application for Death Benefits (FERS) 

Was the deceased applying for or receiving workers' compensation from the Office of 

Workers' Compensation Programs? G No G Yes 

Other names under which employed 

Is there a child of the deceased not yet born? G Yes G No 

If spouse is applying, do not complete sections D, E, F, G, or H. 
 CSRS Spouse Benefits - Death of an Employee FERS 71 

Chapter 70 

Election of OWCP Benefits in Lieu of Survivor Annuity 

I elect to receive benefits from the Office of Workers' Compensation Programs and understand I will 

receive a refund of all retirement contributions. By making this election, I understand that I forfeit any 

future right to a survivor annuity from the Office of Personnel Management if I lose eligibility for 

compensation, > unless I receive payment as a settlement from a third party based on liability. In that 

instance, I understand that I may repay the refund of retirement contributions to OPM to reestablish any 

benefits I may otherwise be entitled to. < 

(Signature) 
U.S. Office of Personnel Management Form approved: 

Retirement Programs OMB No. 3206-0218 

FERS Division 

Washington, DC 20415 

Death Benefit Payment Rollover Election Form 

Please read all of the information we have provided with this election form before you make your election 

on the reverse. 

Survivor's name CSF Number Date 

You are eligible to roll over the following survivor benefit(s) 

Type of 

Benefit Basic Employee Death Benefit 

(BEDB)* 

Interest on: Employee contributions, 

Excess contributions 

Voluntary contributions 

Alternative annuity 

Amount 

Monthly $ 

or 

Lump sum $ 

Lump sum $ Lump sum $ 

Total amount that can be rolled over into an IRA (the total of the benefits identified above.) 

Lump sum $ 

Monthly basic employee

OR death benefit 

Plus Lump sum $ 

Mail the competed election form within 30 days to: 

U.S. Office of Personnel Management
 

Retirement Programs
 

FERS Division
 

1900 E Street, N.W. - Room 4429
 

Washington, D.C. 20415
 

*If you are eligible to receive a basic employee death benefit, you can elect either a lump sum payment or 36 monthly installments of the 

benefit on this form, even if you have elected a different method of payment on another form. Complete the appropriate box on the reverse 

to verify how you would like to have your basic employee death benefit paid to you. 

Privacy Act Statement 

Solicitation of this information is authorized by the Unemployment Compensation Amendments of 1992 (Public Law 102-318). The information you furnish will be used 

to properly tax your benefits. The information may be shared and is subject to verification via paper, electronic media, or through the use of computer matching 

programs, with national, state, local or other charitable or social security administrative agencies in order to determine benefits under their programs, to obtain information necessary 

for determination or continuation of benefits under this program or to report income for tax purposes. It may also be shared and verified, as noted above, with law enforcement 

agencies when they are investigating a violation or potential violation of the civil or criminal law. Furnishing information is voluntary, but failure to do 

so may result in Federal income tax withholding from your benefit and may result in a rollover-eligible payment being made directly to you. 

Public Burden Statement 

We think this form takes an average of one hour per response to complete, including the time for reviewing instructions, getting the needed data, and reviewing 

the completed form. Send comments regarding our estimate or any other aspect of this form, including suggestions for reducing completion time, to the Office or 

Personnel Management, Reports & Forms Manager, (3206-0218), Washington, D.C. 20415. 

RI 94-7 

Revised August 1995 
 

 CSRS Spouse Benefits - Death of an Employee FERS 73 

Chapter 70 

Death Benefit Payment Rollover Election Form 

Make an election in Section 1 or Section 2 below and sign your election. If you make an election in Section 2, 

the election form must also be completed by a representative of your financial institution. 

Section 1 

G I do not want to roll over any part of my eligible benefits into an Individual Retirement Arrangement (IRA). 

If applicable: I have elected to receive my BEDB (check one) G as a Lump Sum. 

G in monthly installments. 

Signature Daytime telephone no. (incl. area code) Date 

Section 2 

G I would like OPM to roll over all or part of my eligible benefits into an Individual Retirement Arrangement (IRA). 

Answer Parts A, B, C, below. 

Part A 

Amount to roll into my IRA: Lump Sum $ BEDB Monthly Installment $ 

(Please state all or the specific portion [not less than $500] of the total amount, shown on the reverse). 

If applicable: I have elected to receive my BEDB (check one) G as a Lump Sum. 

G in monthly installments. 

(The BEDB election you make on this form is the election OPM will honor if you elected a different method of payment at some other time. Information 

concerning the lump sum and installment payments is available on the other side of this election form.) 

Part B 

I want to have the rollover amount sent: (check one box below) 

G Directly to my financial institution. G To me for delivery to the financial institution. In this case, the check will be made payable 

to the IRA Account. 

After you sign Parts A & B, directly below, continue with Part C. 

The certification by your financial institution must be completed. 

Signature Daytime telephone no. (incl. area code) Date 

Part C - Certification by Financial Institution 

If you elect to roll over all or part of your eligible benefit(s) to an IRA, the following must be completed by your 

financial institution: 

Name of institution IRA account number 

Routing number and check digit (if payments should be 

transferred electronically and if an account number is available): 

Address of institution Certification: As a representative of the financial institution named 

above, I confirm the identity of the person named on the other side of 

this notice and the account number. I certify that the financial 

institution agrees to receive the funds and deposit them in an IRA as 

defined in the Internal Revenue Code. 

Signature of certifying representative Daytime telephone no. (incl. area code) Date 
74 CSRS Spouse Benefits - Death of an Employee FERS 

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Typed or printed name of certifying representative 

Section 70C2.1-1 Death Gratuity Authorized by Public Law 104-108 

Death Gratuity > Section 651 of Public Law 104-208 gave agency heads the authority to 

Authorized by Public pay a death gratuity to the personal representative of an employee who dies 

Law 104-108 of an injury sustained in the line of duty. Although no agency was assigned 

specific responsibility for issuing guidance to agencies about payment of 

this benefit, the Director of OPM issued the following memoranda to heads 

of departments and independent agencies on the new authority and the tax 

status of payments. The information in the memoranda was developed 

collaboratively by the U.S. Office of Personnel Management, the Office of 

Workers' Compensation Programs of the Department of Labor, the Internal 

Revenue Service of the Treasury Department, the Interior Department, and 

the Office of Management and Budget. < 
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UNITED STATES 

OFFICE OF PERSONNEL MANAGEMENT 

WASHINGTON, DC 20415-0001 

OCT 15 1996 

MEMORANDUM FOR HEADS OF DEPARTMENTS AND INDEPENDENT AGENCIES 

FROM:	 JAMES B. KING 

DIRECTOR 

SUBJECT:	 New Death Gratuity Payment Authority 

Introduction 

Section 651 of Public Law-104-208, the Omnibus Consolidated Appropriations Act, effective 

September 30, 1996, gives department and agency heads the authority to pay up to $10,000 as 

a death gratuity to the personal representative of an employee who dies from an injury 

sustained in the line of duty. 

This is an important new way to help meet the needs of the survivors of Federal employees 

who have made the ultimate sacrifice in the line of duty. While the authority is discretionary, 

we strongly encourage all department and agency heads to make full use of this new authority 

as soon as possible. 

Eligibility for the Gratuity 

The gratuity is payable to the personal representative-of any Federal employee who dies from 

an injury that was sustained on or after August 2, 1990, in the line of duty. This includes a 

department or agency employee who dies after separation from service, if the death is the 

result of an injury sustained in the line of duty. 

For this purpose, the personal representative of the deceased employee would generally be the 

formally designated executor or administrator of the employee's estate under State law. The 

department or agency head determines who is the personal representative in any particular 

case. 

We believe that the gratuity would be unwarranted if the department or agency determines that 

the employee's death was the result of willful misconduct. 
76 CSRS Spouse Benefits - Death of an Employee FERS 

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Payment of the Gratuity 

The gratuity is to be paid from appropriations made available to the department or agency in an 

amount, when combined with certain other payments, that does not exceed $10,000. The other 

payments that must be considered in determining the amount of the gratuity are: 

$200 payable under 5 U.S.C. S 8133(f), for reimbursement of the costs of termination 

of the decedent's status as an employee of the United States; 

up to $800 payable under 5 U.S.C. S 8134(a), for funeral and burial expenses in cases 

of employees who died as a result of an injury sustained in the performance of duty; 

and 

any amount paid under section 312 of Public Law 103332, the Department of the 

Interior and Related Agencies Appropriations Act, 1995. This authority provides for 

payment of up to $10,000 in reimbursement for burial costs and related out-of-pocket 

expenses for employees killed in the line of duty in agencies that receive appropriations 

under a Department of the Interior and Related Agencies Appropriations Act for fiscal 

year 1995 and thereafter. 

The amount paid. under these three authorities, plus the gratuity paid under the new authority, may not 

total more than $10,000. The gratuity is not reduced by any other amounts, including other benefits 

payable under the Federal Employees' Compensation Act. 

Personal representatives who have received reimbursement of less than $10,000 under the authority of 

section 312 of Public Law 103-332 may seek additional payment at this time under the new authority. 

In these cases, we encourage department and agency heads to pay any additional amounts now 

available under section 651 of Public Law 104-208, subject to the $10,000 total limit. 

Tax Status of the Gratuity 

We have asked the Internal Revenue Service to determine whether the gratuity payment is subject to 

Federal income tax. The IRS now has this question under study. We will disseminate the final IRS 

ruling as soon as it is available. However, the IRS has informed us that payment of the gratuity is not 

subject to Federal income tax withholding. 

Any payments made after the calendar year of the death of the employee are not subject to FICA taxes 

for Social Security and 
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Medicare. Also, the Internal Revenue Code provides that any payments made in the same calendar 

year as the death of the employee are not wages subject to FICA taxes if the payments are made by the 

agency or department head under a plan to make the death gratuity payments for a class of deceased 

employees. The IRS has orally advised us that if agency heads use objective criteria in making 

gratuity payments under section 651, the payment will not be subject to FICA tax withholding. 

Where to Find Out More About Payment of the Gratuity 

To assist agencies in identifying employees who have died following an injury sustained in service on 

or after August 2, 1990, OPM will distribute a list of cases to each agency- The list will contain names 

of cases identified by the office of Workers' Compensation Programs (OWCP) of the Department of 

Labor, in which a claim was filed. 

In most cases in which the gratuity is payable, the benefits payable under 5 U.S.C. SS 8133(f) and 

8134(a) will also be paid by the OWCP. OWCP maintains records of all claims under these provisions 

and can advise agencies about the benefits paid that must be offset from the $10,000 gratuity. 

Agencies should contact: 

Thomas Markey
 

Director, Federal Employees' Compensation Division
 

Office of Workers' Compensation Programs
 

U.S. Department of Labor
 

Employment Standards Administration
 

200 Constitution Avenue, N.W., Room S3229
 

Washington, DC 20210
 

Phone: (202) 219-7552
 

To assist agencies in identifying the personal representative eligible to receive payment under the new 

authority, OWCP will also be able to advise agencies concerning the determination it has made as to 

the personal representative eligible for the payments under 5 U.S.C. SS 8133(f) and 8134(a). 

Any additional questions concerning the gratuity may be directed to James S. Green, OPM's Associate 

General Counsel (Compensation), at 202-606-1700. 
78 CSRS Spouse Benefits - Death of an Employee FERS 

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UNITED STATES
 

OFFICE OF PERSONNEL MANAGEMENT
 

WASHINGTON, DC 20415-0001
 

FEB 20 1997
 

MEMORANDUM FOR HEADS OF DEPARTMENT AND INDEPENDENT AGENCIES 

FROM:	 JAMES B. KING
 

DIRECTOR
 

SUBJECT:	 Tax Status of New Death Gratuity Payment Authority 

Section 651 of Public Law 104-208, the Omnibus Consolidated Appropriations Act, effective 

September 30, 1996, gives department and agency heads the authority to pay up to $10,000 as a 

death gratuity to the personal representative of an employee who dies from an injury sustained in 

the line of duty. 

On October 15, 1996, we issued a memorandum to all heads of departments and independent 

agencies, concerning the death gratuity, including information regarding the tax status of the 

gratuity payment. At that time, however, the Internal Revenue Service had not yet made a 

determination on whether these payments would be subject to Federal income tax. 

The IRS has now issued a ruling that a death gratuity payment, while not subject to Federal 

income tax withholding, is fully subject to Federal income tax if the-death occurred on or after 

August 20, 1996. If death occurred earlier, a $5,000 exclusion will generally apply. The IRS 

explained its finding as follows. 

Section 101(b) (of the Internal Revenue Code), for persons dying before August 20, 

1996, provides that gross income does not include amounts received by the 

beneficiaries or the estate of an employee, if such amounts are paid by or on behalf of 

an employer and are paid by reason of the death of the employee. Section 101(b) has 

been repealed for persons dying on or after August 20, 1996, by section 1402 of the 

Small Business Job Protection Act of 1996, Pub. L. 104-188. 

The aggregate amount excludable under S 101(b), with respect to an employee dying 

before August 20, 1996, is limited to $5,000 regardless of the number of employers or 

the number of beneficiaries. If there is more than one beneficiary receiving an 

employee's death benefit, the $5,000 exclusion must be allocated in the same 

proportion as the amount received by or the present value of the amount payable to 

each bears to the total death benefits paid or payable by or on behalf of the employer 

or employers. Sections 1.101-2(a) and (c) of the Income Tax Regulations. The $5,000 

exclusion applies to the first $5,000 received. J.C. Nordt Co., Inc. v. Commissioner, 

46 T.C. 431 (1966). 
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Accordingly, the availability of the exclusion with respect to the death gratuity payments (but 

only for employees dying before August 20, 1996) depends on what other amounts, if any, have 

already been paid by one or more employers with respect to that employee. Civilian employees 

of federal departments or agencies receive many benefits, at least one of which may, depending 

on facts or circumstances, be a death benefit excludible under S 101(b). 

Thus, we conclude that a death gratuity payment made under section 651 of Public Law 104-208 

with respect to an employee who died before August 20, 1996, qualifies as an item that may be 

taken into account in computing the $5,000 exclusion under section 101(b) of the Code. The 

exclusion would apply for death gratuity payments made with respect to employees who died 

before August 20, 1996, to the extent that prior payments from the employer (or employers) of 

the employee had not used up the $5,000 exclusion. 

For death gratuity payments made with respect to employees who have died on or after August 

20, 1996, no exclusion under section 101(b) of the Code is available. 

Agencies may give this information to recipients of the gratuity payment. Any tax questions they may 

have should be directed either to the recipient's tax consultant or to the IRS. James S. Green, OPM's 

Associate General Counsel (Compensation), (202) 6061700, is available to answer general questions 

about the gratuity provision.