Does MRA+10 Qualify for FEHB?

Yes, you can elect a reduced amount and they will still be eligible to participate in FEHB after your passing. 

If you select Option 3 on the SF-3107 your spouse will NOT be eligible to maintain FEHB after you pass. This option means that your pension will not be reduced and is only payable during your lifetime. Once you pass, no benefits are available to your survivor. 

Qualification #2 for Spouses to Maintain FEHB in Retirement – they must be enrolled in FEHB before you pass away. 

In order to qualify for FEHB in retirement for YOU as the Federal Employee, you must have been enrolled for the last 5 consecutive years. 

In order to qualify for FEHB as a survivor YOUR SPOUSE must have been enrolled in FEHB before you as the Federal Employee passed away.

The 5 year rule for survivors does not apply. The rule is that they must be enrolled, there are no time qualifications. 

FEHB is the best benefit that you and your survivor have as a Federal Employee.  In order to maintain that coverage into retirement or for your survivors to after you pass, you have to understand the eligibility rules.  We just discussed the qualifications to maintain this coverage above. 

As Financial Planners for Federal Employees, we work with hundreds of Feds all across the United States. This provides us with a unique opportunity to conduct financial planning for employees who are:

• Single Federal Employees,

• Married Federal Employees (dual Feds),

• Married Federal Employees (one Fed, one private sector spouse),

• Married Federal Employees (one Fed, one stay at home spouse),

• Widowed Federal Employees.

Because we work with so many Federal employees, we want to take a moment to walk you through a situation we see a lot of as an example,  

This involves a Federal Employee who is married to a Non-Federal Employe who works in the private sector. 

Bob – Federal Employee

Sue – Non-Federal Employee, works in the private sector

Bob applies for an immediate unreduced annuity upon meeting his eligibility criteria for retirement.  He has been enrolled in FEHB for the last 15 years. 

Upon completing his SF-3107, he wants to ensure that Sue is taken care of if anything happens to him. Bob works with his HR and elects to leave the maximum survivor benefit possible for Sue. This allows Sue to receive 50% of Bob’s pension upon his passing. Keep in mind that it is NOT within the scope of your HR to provide you with financial advice, they cannot – they are not licensed to do so. They can help answer all of the “how this process works,” questions you have but they cannot tell you what you need to do. 

Sue is a few years younger than Bob and not quite ready to retire from her private sector job.  

Each November, during their working years, Bob and Sue would sit down during open enrollment and review their health insurance options. For the last 10 years, it has been cheaper for Bob to be enrolled in a Self-Only Plan under FEHB and Sue to maintain her Self ONly plan with her employer.  Not only is it less expensive of a premium but Sue really likes her providers and changing health insurance plans would be a hassle. 

When Bob passes a few years later, Sue is devastated and decides that she is going to retire and move closer to their kids so she can be near family.

When Sue is going through her Survivor Package from OPM, she discovers that she will receive 50% of Bob’s pension but is NOT eligible to enroll in FEHB.

Because Sue was not previously enrolled in FEHB, she is disqualified from enrolling on Bob’s passing even though she was left a survivor benefit. 

In order for your spouse to receive FEHB in retirement they must meet the following qualifications:

Qualification #1 for Spouses to Maintain FEHB in retirement: they must be eligible to receive, or are receiving a survivor pension. 

Qualification #2 for Spouses to Maintain FEHB in retirement: they must be enrolled in FEHB prior to your death. 

Bob had ensured that Sue met the first qualification but together, they elected not to meet the second.

In this scenario, which we see too often, Sue must purchase health insurance on the open marketplace or, resume working with an employer who can provide coverage. 

If you are unsure what your options are, we think it is important that you consider working with a Financial Planner, who is licensed to give you financial advice, to make a plan for pre-retirement, retirement and survivor situations.