Accrued Unpaid Annuity: How to Claim the Final OPM Payment After a Federal Retiree Dies

A federal retiree's annuity stops on the date of death — not at the end of the month. If the retiree dies on the 15th, they earned 15 days of annuity that month. That prorated amount is the accrued unpaid annuity, and it belongs to the survivor or the estate. OPM does not pay it automatically with the regular monthly deposit. You have to claim it.

How the Accrued Unpaid Annuity Works

Federal civil service annuities are paid in arrears. The payment deposited on the first business day of a month covers the previous month. When a retiree dies mid-month, the full payment for the partial month never goes out through the normal deposit cycle. Instead, OPM calculates the exact prorated amount — from the first of the month through the date of death — and pays it as a lump sum during the survivor claims adjudication.

Meanwhile, any full monthly payment that was deposited after the date of death gets reclaimed by Treasury under 31 CFR Part 210. The reclaimed overpayment and the accrued unpaid annuity are two separate amounts moving in opposite directions.

Example: A retiree receiving $3,000 per month dies on March 20. Treasury reclaims the April deposit ($3,000). OPM later pays the accrued unpaid annuity for March 1–20 (roughly $1,935 for 20 of 31 days). The survivor ends up $1,065 short compared to a full month — but that is the correct amount because the retiree did not live through the full month.

Who Receives It

The accrued unpaid annuity follows this order of precedence under 5 U.S.C. § 8342 (CSRS) and § 8424 (FERS):

1. Designated beneficiary on Form SF 3102 (FERS) or SF 2808 (CSRS)
2. Surviving spouse
3. Children in equal shares
4. Parents in equal shares
5. The estate

Most retirees never filed a separate beneficiary designation form for unpaid annuity, so it typically goes to the surviving spouse by default.

How to Claim It

You do not file a separate form for the accrued unpaid annuity. When the surviving spouse submits SF 3104 (FERS) or SF 2800 (CSRS) for the survivor annuity, OPM uses that same application to adjudicate the unpaid annuity claim. The lump sum is paid along with the first retroactive survivor annuity payment, usually 60 to 90 days after the claim is filed.

If no surviving spouse exists and the payment goes to children, parents, or the estate, the claim still routes through the SF 3104 or SF 2800 application process. The person filing the application indicates their relationship to the deceased, and OPM determines who is entitled to the unpaid balance.

Unpaid Annuity vs. Unpaid Compensation

These are different claims handled by different forms:

• Accrued unpaid annuity — the retiree's prorated pension payment through the date of death. Claimed through the survivor annuity application (SF 3104 or SF 2800) submitted to OPM.
• Unpaid compensation (SF 1153) — applies to federal employees who die while still working, covering final salary, accrued annual leave, and other pay owed by the employing agency. Filed with the agency, not OPM.

If the deceased was a retired federal employee, the accrued unpaid annuity is almost always the relevant claim. SF 1153 applies only if the retiree also had unpaid compensation from active employment at the time of death.

Tax Treatment

OPM reports the accrued unpaid lump sum on Form CSF 1099-R under the eligible survivor's or beneficiary's Social Security number. The deceased retiree's annuity disbursements through the date of death are reported on Form CSA 1099-R under the retiree's Social Security number. See IRS Publication 721 for the tax treatment of civil-service survivor payments.

The surviving spouse's ongoing survivor annuity payments are also reported on Form CSF 1099-R under the survivor's own Social Security number.

The Federal Retiree Death Benefits Guide covers the accrued unpaid annuity alongside every other federal claim — survivor annuity, FEGLI, TSP, health insurance, and overpayment resolution — so nothing gets missed during the 60 to 90 day adjudication period.

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