When planning your federal retirement, we want to take care of those dependent on us, in the event we die. A spouse is eligible for a FERS benefit of 25% or 50% of the Unreduced FERS retirement annuity. But what is the deal when the survivor is not a spouse, but a child, be it a minor or a Special Needs adult?
The children’s survivor benefit is a specific dollar amount established by a formula in the governing United States Code and is increased by Cost-of-Living Adjustments. Each child’s rate is determined individually based on the circumstances described below.
When the child has a living parent who was married to the employee or retiree, the benefit payable to the child is the lesser of:
• $469 per month per child; or
• $1,409 per month divided by the number of eligible children.
When the child does not have a living parent who was married to the employee or retiree, the benefit payable to the child is the lesser of:
• $563 per month per child; or
• $1,691 per month divided by the number of eligible children.”
Insurable interest is anyone as ‘Survivor” who is non-Spouse (or common law). This would be child or other persons dependent on the federal retiree.
AGE DIFFERENCE BETWEEN
THE RETIREE and THE PERSON NAMED
AS INSURANBLE
Although your Special Need child has a strong need, the benefit may not be as large as the child needs.
As to solutions, this is an individual case situation. In most Special Needs cases, Social Security may contribute to the welfare of the child, but one thing is certain, this takes a sharp planner to help.
