5 C.F.R. § 842.602 Definitions.
Title 5 - Administrative Personnel
In this subpart— Current spouse means a living person who is married to the employee, Member, or retiree at the time of the employee's, Member's, or retiree's death. Current spouse annuity means a recurring benefit under FERS that is payable (after the employee's, Member's or retiree's death) to a current spouse who meets the requirements of §843.303 of this chapter. Deposit means a deposit required to provide a survivor benefit. Deposit, as used in this subpart, does not include a service credit deposit or redeposit. FERS means chapter 84 of title 5, United States Code. First regular monthly payment means the first annuity check payable on a recurring basis (other than an estimated payment or an adjustment check) after OPM has initially adjudicated the regular rate of annuity payable under FERS and has paid the annuity accrued since the time of retirement. The first regular monthly payment is generally preceded by estimated payments before the claim can be adjudicated and by an adjustment check (including the difference between the estimated rate and the initially adjudicated rate). Former spouse means a living person who was married for at least 9 months to an employee, Member, or retiree who performed at least 18 months of creditable service under FERS. The “former spouse's” marriage to the employee must have been terminated prior to the death of the employee, Member, or retiree. Former spouse annuity means a recurring benefit under FERS that is payable to a former spouse after the employee's, Member's, or retiree's death. Fully reduced annuity means the recurring payments under FERS received by a retiree who has elected the maximum reduction in his or her annuity to provide a current spouse annuity and/or a former spouse annuity or annuities. Insurable interest rate means the recurring payments under FERS to a retireee who has elected a reduction in annuity to provide a survivor annuity to a person with an insurable interest in the retiree. Marriage has the same meaning as in §843.102 of this chapter. Member means a Member of Congress. Net annuity means the net annuity as defined in §838.103 of this chapter. One-half reduced annuity means the recurring payments under FERS received by a retiree who has elected one-half of the full reduction in his or her annuity to provide a partial current spouse annuity or a partial former spouse annuity or annuities. Present value factor means the amount of money (earning interest at an assumed rate) required at the time of retirement to fund an annuity that starts out at the rate of $1 a month and is payable in monthly installments for the annuitant's lifetime based on mortality rates for non-disability annuitants under the Civil Service Retirement System; and increases each year at an assumed rate of inflation. Interest, mortality, and inflation rates used in computing the present value are those used by the Board of Actuaries of the Civil Service Retirement System for valuation of the System, based on dynamic assumptions. The present value factors are unisex factors obtained by averaging six distinct present value factors, weighted by the total dollar value of annuities typically paid to new retirees at each age. Qualifying court order means a court order that awards a former spouse annuity and that satisfies the requirements of section 8445 of title 5, United States Code, for awarding a former spouse annuity. Retiree means a former employee or Member who is receiving recurring payments under FERS based on service by the employee or Member. “Retiree,” as used in this subpart, does not include a current spouse, former spouse, child, or person with an insurable interest receiving a survivor annuity. Self-only annuity means the recurring unreduced payments under FERS to a retiree with no survivor annuity payable to anyone. Time of retirement means the effective commencing date for retired employee's or Member's annuity. An employee or Member is unmarried at the time of retirement for all purposes under this subpart only if the employee or Member was unmarried on the date that the annuity begins to accrue. [52 FR 2061, Jan. 16, 1987, as amended at 56 FR 65419, Dec. 17, 1991; 57 FR 33598, July 29, 1992; 57 FR 54678, Nov. 20, 1992; 58 FR 52883, Oct. 13, 1993]
Title 5: Administrative Personnel
PART 842—FEDERAL EMPLOYEES RETIREMENT SYSTEM—BASIC ANNUITY
Subpart F—Survivor Elections
§ 842.602 Definitions.
§ 842.611 Post-retirement election of a fully reduced annuity or one-half reduced annuity to provide a former spouse annuity.
(a) Except as provided in paragraphs (b) and (c) of this section, when a retiree's marriage terminates after retirement, the retiree may elect in writing a fully reduced annuity or a one-half reduced annuity to provide a former spouse annuity. Such an election must be filed with OPM within 2 years after the retiree's marriage to the former spouse terminates.
(b)(1) Qualifying court orders prevent payment of former spouse annuities to the extent necessary to comply with the court order and §842.613.
(2) A retiree who elects a fully reduced annuity or a one-half reduced annuity to provide a former spouse annuity may not elect to provide a former spouse annuity in an amount that either—
(i) Is smaller than the amount required by a qualifying court order; or
(ii) Would cause the sum of all current and former spouse annuities based on a retiree's elections under §§842.603, 842.604, 842.612 and this section to exceed the maximum allowed under §842.613.
(3) An election under this section is void—
(i) In the case of a married retiree, if the current spouse does not consent to the election on a form as described in §842.606(c) and spousal consent is not waived by OPM in accordance with §842.607; or
(ii) To the extent that it provides a former spouse annuity for the spouse who was married to the retiree at the time of retirement in an amount that is inconsistent with any joint designation or waiver made at the time of retirement under §842.603(a)(1) or (a)(2).
(c) An election under this section is not permitted unless the retiree agrees to deposit the amount equal to the difference between the amount of annuity actually paid to the retiree and the amount of annuity that would have been paid if the reduction elected under paragraph (a) of this section had been in effect continuously since the time of retirement, plus 6 percent annual interest (computed under §841.107 of this chapter) from the date when each difference occurred.
(d) Any reduction in an annuity to provide a former spouse annuity will terminate on the first day of the month after the former spouse remarries before age 55 or dies, or the former spouse's eligibility for a former spouse annuity terminates under the terms of a qualifying court order, unless—
(1) The retiree elects, within 2 years after the event causing the former spouse to lose eligibility, to continue the reduction to provide or increase a former spouse annuity for another former spouse, or to provide or increase a current spouse annuity; or
(2) A qualifying court order requires the retiree to provide another former spouse annuity.
(e) The amount of the reduction to provide one or more former spouse annuities or a combination of a current spouse annuity and one or more former spouse annuities under this section equals—
(1) Ten percent of the employee's or Member's annuity if the employee or Member elects a fully reduced annuity; or
(2) Five percent of the employee's or Member's annuity if the employee or Member elects a one-half reduced annuity.
[52 FR 2061, Jan. 16, 1987, as amended at 57 FR 54680, Nov. 20, 1992]
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