Part 1: Introduction

Introduction to the Estate Planning and Post-Death Guide for Federal Employees

Welcome to the Estate Planning and Post-Death Guide tailored specifically for federal employees and their families. This comprehensive guide aims to provide federal employees, retirees, and their survivors with valuable information and actionable steps related to estate planning and what to do after the passing of a federal employee.

This guide has been thoughtfully crafted to address the unique needs, benefits, and programs available to federal employees. Whether you are an active federal employee planning for the future, a retiree enjoying your well-deserved retirement, or a survivor navigating the complexities of post-death procedures, this guide is here to assist you.

What You Can Expect from This Guide

This guide is organized into several parts, each focusing on essential aspects of estate planning and post-death procedures relevant to federal employees. Within each section, you will find clear and concise information, action items, and valuable insights to help you make informed decisions and take the necessary steps.

Who Should Use This Guide

• Active Federal Employees: Use this guide to proactively plan your estate, understand your retirement options, and ensure your loved ones are well-prepared.
• Federal Retirees: Benefit from the post-death procedures section to help your survivors navigate important processes during a challenging time.
• Survivors and Beneficiaries: Find guidance on what to do after the loss of a federal employee, including accessing benefits and resources.

We Are Here to Help

Throughout this guide, you will find actionable steps, tips, and recommended resources to assist you in making informed decisions. Estate planning and post-death procedures can be complex, but with the right information and support, you can ensure a smoother transition for your loved ones.

Please remember that estate planning is a personal and evolving process. While this guide provides valuable insights, it is essential to consult with legal, financial, and benefits professionals to tailor your plan to your unique circumstances.

We are committed to simplifying the estate planning and post-death process for federal employees and their families. Let’s begin this journey together, ensuring your legacy is protected and your loved ones are well-cared for.

Agency & Program Contact Information

Civil Service Retirement System (CSRS)

The Civil Service Retirement System (CSRS) is administered by the Office of Personnel Management (OPM). You can contact OPM’s Retirement Office by phone at (888) 767-6738 or by email at retire@opm.gov.

Federal Employees Dental and Vision Insurance Program (FEDVIP)

For questions about enrollment or premiums for the Federal Employees Dental and Vision Insurance Program (FEDVIP), you can contact BENEFEDS at 1-877-888-3337. You can also call TTY at 1-877-889-5680. You can also enroll in a FEDVIP plan online at BENEFEDS.com.

Federal Employees’ Group Life Insurance (FEGLI)

You can contact the Office of Federal Employees’ Group Life Insurance (OFEGLI) by calling (800) 633-4542 or (212) 578-2975. You can also fax them at (570) 558-8659 or visit OPM’s FEGLI page.

Federal Employee Health Benefits (FEHB)

For more information on Federal benefits go to OPM’s healthcare page. Please contact a Benefit representative at 317-212-0454 if you have questions regarding employee benefits.

Federal retirement systems (FERS)

You may contact OPM’s Retirement Office by phone at 1 (888) 767-6738 or by e-mail at retire@opm.gov. The phone lines are open Monday through Friday 7:40 a.m. to 5:00 p.m. eastern time.

Federal Long-Term Care Insurance Program (FLTCIP)

If you and/or your family member are enrolled in the FLTCIP and have any questions about your coverage or eligibility for benefits, contact Long Term Care Partners at 1-800-582-3337 (TTY: 1-800-843-3557) or go to FLTCIP website.

Survivor Benefit Plan (SBP)

Call the Defense Finance Accounting Service (DFAS) Customer Care Center at (800) 321-1080. You can also report a retiree’s death online using DFAS’ Report a Retiree’s Death.

Thrift Savings Plan (TSP)

The Thrift Savings Plan (TSP) can be contacted by calling 1-877-968-3778, Monday through Friday, from 7 AM to 9 PM Eastern Time. For international callers, the number is (404) 233-4400.

Part 2: Navigating the Federal Retirement System (FERS)

Federal Retirement Systems (FERS) 101

What is the Federal Retirement System?

FERS is a three-tier retirement system comprising a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). This structure provides a diversified retirement income through a combination of a pension plan, Social Security benefits, and individual savings.

Eligibility and Enrollment

• Determine Eligibility Criteria: Most new federal civilian employees are automatically enrolled in FERS.
• Note: Understanding your eligibility helps in planning your retirement contributions and benefits.

Basic Benefit Plan Contributions

• Review Your Pension Contributions: Contributions to the Basic Benefit Plan are automatically deducted from your salary.
• Note: These contributions are a key part of your retirement income, providing a guaranteed pension based on your years of service and salary history.

Retirement Age and Benefits

• Know Your Minimum Retirement Age (MRA): The MRA under FERS varies depending on your birth year.
• Note: Your MRA affects when you can retire with full benefits, impacting your retirement planning.

Calculating Retirement Benefits

• Understand Benefit Calculation: FERS retirement benefits are calculated based on your years of service, salary, and age at retirement.
• Note: Familiarity with the benefit calculation formula helps in estimating your future retirement income.

Basic Benefits Plan 101

What is the Basic Benefit Plan?

The Basic Benefit Plan is a fundamental component of the Federal Employees Retirement System (FERS) for U.S. federal employees. It functions as a defined benefit pension plan and is one of the three key components of FERS, alongside Social Security and the Thrift Savings Plan (TSP).

Key Features of the Basic Benefit Plan

• Defined Benefit Pension: The Basic Benefit Plan is a pension plan that provides a defined monthly benefit in retirement, based on the employee’s years of service and average salary.
• Employee Contributions: Federal employees contribute a set percentage of their salary towards the Basic Benefit Plan. This contribution rate can vary depending on when the employee was hired and other factors.
• Government Contributions: In addition to the employee’s contributions, the federal government also contributes to the Basic Benefit Plan on behalf of the employee.
• Benefit Calculation: The retirement benefit under the Basic Benefit Plan is calculated using a formula that considers the employee’s length of service, average high-3 salary (the highest average basic pay over any three consecutive years), and a specific multiplier.
• Retirement Eligibility: Eligibility for retirement and the amount of benefits depend on the employee’s age, years of service, and in some cases, other special requirements.
• Survivor and Disability Benefits: The plan also provides certain protections for survivors and offers disability benefits under specific conditions.

The Basic Benefit Plan is a significant part of the overall retirement package for federal employees, offering a stable and predictable source of income in retirement.

Thrift Savings Plan (TSP) 101

What is a Thrift Savings Plan (TSP)?

A TSP is a retirement savings and investment plan for federal employees and members of the uniformed services, including the Ready Reserve. It’s similar to a private sector 401(k) plan. The TSP offers federal employees a tax-advantaged way to save for retirement, providing various investment options and the opportunity for government matching contributions, enhancing their retirement income security.

Who Administers the Federal TSP?

The Federal Thrift Savings Plan (TSP) is administered by the Federal Retirement Thrift Investment Board, an independent agency established by the United States Congress. This board is responsible for overseeing and managing the TSP, ensuring it operates efficiently and in the best interest of its participants.

Which Federal Employees can participate in the TSP?

The Thrift Savings Plan (TSP) is available to a broad range of federal employees, including:

• Civilian Federal Employees: Most civilian employees of the United States Government are eligible to participate in the TSP. This includes employees covered by the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS).
• Members of the Uniformed Services: This includes members of the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service Commissioned Corps, and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.
• Ready Reserve Members: Those in the Ready Reserve of the uniformed services, who may be called to active duty, are also eligible to contribute to the TSP.

It’s important to note that eligibility can vary based on the specifics of the employment or service situation, and some employees, like those hired on a temporary basis or as part of certain specific programs, might have different eligibility criteria or restrictions.

Part 3: Civil Service Retirement System 101

Civil Service Retirement System 101

What is the Civil Service Retirement System (CSRS)?

CSRS stands for the Civil Service Retirement System, and it is a retirement plan for eligible federal employees.

Who Administers CSRS?

The Civil Service Retirement System (CSRS) is administered by the Office of Personnel Management (OPM) in the United States government. OPM is responsible for overseeing and managing federal retirement programs, including CSRS, to ensure that federal employees receive the retirement benefits they have earned through their federal service. OPM plays a central role in processing retirement applications, calculating retirement annuities, and providing guidance on CSRS benefits to federal employees and retirees.

Key Points About CSRS

• Pension System: CSRS is a traditional defined benefit pension system. It provides federal employees with a monthly retirement annuity based on their years of service and salary history.
• Eligibility: CSRS covers certain federal employees who were hired before January 1, 1984. New federal employees hired after this date are typically covered by the Federal Employees Retirement System (FERS).
• Employee Contributions: CSRS employees make regular contributions to the retirement system throughout their careers. These contributions are automatically deducted from their salaries.
• Government Contributions: The federal government also makes contributions to the CSRS fund on behalf of employees, helping to fund the retirement benefits.
• Benefit Calculation: CSRS retirement benefits are calculated using a formula that considers the employee’s years of service and average high-3 salary (the highest average basic pay over any three consecutive years), along with a specific multiplier.
• Full Retirement: CSRS employees can retire with full benefits after reaching certain age and service requirements, often referred to as the “CSRS retirement eligibility.”
• Survivor and Disability Benefits: CSRS provides survivor benefits for spouses and dependents and offers disability benefits under specific conditions.

It’s important to note that CSRS is different from the Federal Employees Retirement System (FERS), which is the retirement plan for most federal employees hired after January 1, 1984. FERS includes a mix of a defined benefit plan, Social Security, and the Thrift Savings Plan (TSP). CSRS, on the other hand, is a stand-alone defined benefit pension plan.

Part 4: Federal Employees’ Group Life Insurance (FEGLI) 101

Federal Employees’ Group Life Insurance (FEGLI) 101

What is the Federal Employees’ Group Life Insurance Program?

The Federal Employees’ Group Life Insurance program (FEGLI) offers life insurance coverage to federal employees.

Who Administers FEGLI?

The Federal Employees’ Group Life Insurance (FEGLI) program is administered by the Office of Personnel Management (OPM) in the United States government. OPM oversees and manages the FEGLI program, ensuring that federal employees have access to life insurance coverage and providing guidance on various aspects of the program, including enrollment, beneficiary designations, and coverage options. OPM plays a central role in regulating and maintaining the FEGLI program for federal employees and retirees.

FEGLI Coverage Options

• Explore Coverage Choices: Discover the various coverage options available under FEGLI, including Basic, Option A, Option B, and Option C.
• Note: Each coverage option provides different levels of protection, and choosing the right one depends on your individual needs.

Beneficiary Designations

• Designate Beneficiaries: Understand how to designate beneficiaries for your FEGLI coverage and the importance of keeping this information up-to-date.
• Note: Proper beneficiary designations ensure that benefits are distributed according to your wishes in the event of your death.

FEGLI Open Seasons

• Learn About Open Seasons: Find out about FEGLI Open Seasons, during which you can make changes to your coverage without the need for a qualifying life event.
• Explanation: Open Seasons provide opportunities to adjust your coverage to align with changes in your life circumstances.

FEGLI in Retirement

• Explore FEGLI in Retirement: Understand how FEGLI coverage works after retirement and how to continue coverage into retirement if desired.
• Note: Planning for FEGLI coverage in retirement is crucial for maintaining life insurance protection.

FEGLI vs. Private Life Insurance

• Compare FEGLI to Private Insurance: Consider the pros and cons of FEGLI versus private life insurance options to make informed decisions about your coverage.
• Note: Evaluating FEGLI in comparison to private insurance helps you choose the most suitable life insurance solution for your needs.

Federal Employees’ Group Life Insurance Plan Options

What are the Details of the Various Plan Options?

FEGLI offers a range of coverage options, allowing federal employees to customize their life insurance protection. Basic coverage is automatically provided, while Options A, B, and C are additional coverage options that employees can choose to enhance their life insurance benefits. Each option comes with different premium costs and coverage amounts, and employees have the flexibility to select the options that best meet their needs.

Basic Life Insurance (Basic)

• Automatic Coverage: All eligible federal employees are automatically enrolled in Basic coverage unless they waive it.
• Coverage Amount: The Basic coverage amount is equal to the employee’s annual basic pay, rounded up to the nearest thousand dollars, plus an extra $2,000.
• Premiums: The cost of Basic coverage is shared between the employee and the government, with the employee paying two-thirds of the premium and the government covering one-third.
• Coverage for Spouses and Dependents: Basic coverage does not extend to spouses or dependent children.

Option A – Standard Insurance

• Additional Coverage: Option A provides an additional flat-rate coverage of $10,000.
• Employee-Paid Premiums: Employees pay the full premium for Option A coverage, and the government does not contribute.
• Coverage for Spouses and Dependents: Option A coverage does not extend to spouses or dependent children.

Option B – Additional Insurance

• Flexible Coverage: Option B allows employees to choose one to five multiples of their annual basic pay as additional coverage.
• Employee-Paid Premiums: Employees pay the full premium for Option B coverage based on the chosen multiples.
• Coverage for Spouses: Option B coverage is available for spouses, but employees must elect this coverage, and premiums are based on the spouse’s age.
• No Coverage for Dependents: Option B coverage does not extend to dependent children.

Option C – Family Insurance

• Family Coverage: Option C provides coverage for dependent children of the insured employee.
• Three Coverage Levels: Option C offers three levels of coverage: $5,000 for each eligible child, $10,000 for each eligible child, or $15,000 for each eligible child.
• Employee-Paid Premiums: Employees pay the full premium for Option C coverage based on the chosen coverage level.
• No Spouse Coverage: Option C coverage does not extend to spouses.

Survivor Benefit Plan (SBP) 101

Survivor Benefit Plan (SBP) 101

What is the Survivor Benefit Plan (SBP)?

The Survivor Benefit Plan (SBP) is a program that provides a monthly annuity to eligible survivors of retired military personnel.

Who Administers the SBP?

The Survivor Benefit Plan (SBP) is administered by the Department of Defense (DoD) in the United States. Specifically, the Defense Finance and Accounting Service (DFAS) is responsible for the day-to-day administration of SBP. DFAS handles the collection of premiums, processing of claims, and distribution of survivor annuities to eligible beneficiaries. Additionally, military personnel offices provide information and assistance to service members regarding SBP enrollment and beneficiary designations. SBP is a significant benefit for retired military personnel and their survivors, and its administration is overseen by the Department of Defense.

Eligibility and Enrollment

• Determine SBP Eligibility: Understand the eligibility criteria for SBP coverage and the enrollment process.
• Note: Ensuring that you and your loved ones meet the eligibility requirements is crucial for enrolling in the program.

SBP Coverage Levels

• Explore Coverage Options: Learn about the different SBP coverage levels and how they impact the amount of the survivor annuity.
• Note: Selecting the appropriate coverage level is essential for determining the financial support provided to your survivors.

Cost of SBP Coverage

• Calculate SBP Premiums: Understand how SBP premiums are calculated based on the chosen coverage level and the retired member’s retired pay.
• Note: Knowing the cost of SBP coverage helps in budgeting for this essential benefit.

Beneficiary Designations

• Designate SBP Beneficiaries: Learn how to designate beneficiaries for your SBP coverage and keep this information up-to-date.
• Note: Proper beneficiary designations ensure that the survivor annuity is distributed according to your wishes.

SBP in Retirement

• Explore SBP in Retirement: Understand how SBP coverage works after retirement and how it integrates with other retirement benefits.
• Note: Planning for SBP coverage in retirement is crucial for providing financial security to your survivors during their lifetime.