What Happens to a Federal Pension When a Spouse Dies
The Pension Stops on the Date of Death
A federal retirement annuity terminates on the exact day the retiree dies. Because OPM pays annuities in arrears — the deposit that arrives on the first business day of a month covers the previous month — any payment that hits the bank account after the death date is an overpayment.
The Department of the Treasury automatically reclaims that overpayment by debiting the bank account directly under 31 CFR Part 210. This happens even in a joint account. The reclamation is not optional, and it's not delayed — banks execute it as soon as Treasury sends the Notice of Reclamation.
The surviving spouse should not withdraw the last pension deposit. If the money has already been spent, the bank flags the reclamation as insufficient funds and Treasury initiates debt collection against the account holders or the estate.
What Replaces It: The Survivor Annuity
If the retiree elected survivor coverage at retirement, a portion of the pension continues as a monthly survivor annuity for the surviving spouse:
- FERS: 50% of the retiree's unreduced annuity (full election) or 25% (partial election)
- CSRS: up to 55% of the retiree's unreduced annuity
The survivor annuity is not automatic — the surviving spouse must file a claim. For FERS, file SF 3104 and SF 3104B. For CSRS, file SF 2800. OPM processes claims in roughly 60 to 90 days and issues interim "Quick Pay" payments during the wait.
Once adjudicated, OPM pays the survivor annuity retroactively to the date of death and sends a lump-sum back-pay amount covering the processing period.
What If No Survivor Benefit Was Elected
If the retiree chose zero survivor coverage at retirement — which required the spouse's written consent — no monthly annuity is payable. The pension simply stops.
This also terminates eligibility for continued federal health insurance. Under FEHB and PSHB rules, a surviving spouse can only keep coverage if they're entitled to a monthly survivor annuity. Without one, health coverage ends on the last day of the month of death. The spouse can elect 36 months of Temporary Continuation of Coverage (TCC) at 102% of the full premium as a bridge to other coverage.
Free Download
Get the Federal Retiree Death — Notify, Claim & Continue Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
The Accrued Unpaid Annuity
Even though Treasury reclaims the full monthly deposit made after the death, the retiree earned a prorated annuity from the first of the month through the date of death. OPM calculates this amount and pays it to the surviving spouse or the designated beneficiary as part of the claims process. For a retiree who dies on April 15 and was receiving $3,000 per month, the accrued unpaid annuity would be roughly $1,500 for the first 15 days of April.
Other Benefits That Kick In
The pension is one of several federal benefits triggered by a retiree's death. The surviving spouse should also claim:
- FEGLI life insurance — Form FE-6 filed with OFEGLI, not OPM
- TSP account balance — reported through the TSP Life Events Hub at tsp.gov
- Social Security survivor benefits — now payable without the GPO or WEP offset for benefits from January 2024 onward
The Federal Retiree Death Benefits Guide walks through all of these claims together, with the forms, deadlines, and worked dollar examples for each agency.
Get Your Free Federal Retiree Death — Notify, Claim & Continue Checklist
Download the Federal Retiree Death — Notify, Claim & Continue Checklist — a printable guide with checklists, scripts, and action plans you can start using today.