OPM updates survivor benefit conversion factors for separated federal employees

The Office of Personnel Management is updating the math used to calculate survivor benefits for spouses of deceased former federal employees who left service before retiring. This change adjusts the “present value conversion factors” that determine how much a surviving spouse gets if they choose to start receiving payments immediately rather than waiting until the employee would have reached retirement age.

Why it matters: This is an administrative adjustment to keep benefit calculations accurate under current economic conditions. It ensures that the lump sums or annuity payments made to survivors are mathematically equivalent to what they would have received had they waited for full retirement age, accounting for inflation and interest rates. The impact is narrow, affecting only about one percent of survivor annuity applications involving separated employees who died before their normal retirement date.

Who it affects

• Surviving spouses or former spouses of deceased federal employees covered by FERS who left service before retiring

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This summary is based on a direct final rule published by the Office of Personnel Management in the Federal Register; readers should consult the original document for precise regulatory text and effective dates.

Agency: Personnel Management Office
Source: Federal Register — read the official document