Changes Needed in Calculation of Reduction in Civil Service Annuities for Survivor Benefits
FPCD-81-35
Published: Feb 26, 1981. Publicly Released: Feb 26, 1981.
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Highlights
GAO reviewed the method used by the Office of Personnel Management (OPM) to reduce the civil service annuities of retired federal employees who have elected survivor benefits for their spouses. Specifically, its objectives were to evaluate the OPM method of calculating the survivor benefit reduction when applying cost-of-living adjustments and to determine what the effects would be if the method were changed.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Personnel Management | The Acting Director, OPM, should determine reduced annuities for survivor coverage by first adjusting the full annuities for cost-of-living increases and then applying the reduction formula. |
No action is being taken because the agency and congressional committees disagree with this recommendation.
|
| Office of Personnel Management | The Acting Director, OPM, should propose a change to section 5 U.S.C. 8339 so that upon remarriage a retiree's survivor reduction would be determined according to the reduction formula applicable to other retirees. |
No action is being taken because the agency and congressional committees disagree with this recommendation.
|
| Office of Personnel Management | The Acting Director, OPM, should change the method of reestablishing full annuities in cases of marriage dissolution to the method described in this report. |
No action is being taken because the agency and congressional committees disagree with this recommendation.
|
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Topics
Civil service pensionsCost of livingRetireesEmployee retirement plansEmployee survivors benefitsFederal employeesPensionsSurvivor benefitsCivil serviceDeaths