Changes

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.

A portion of the annuity, since it was paid from post-tax earnings, is not taxable, and will be shown on the annuity statements.  The non-taxable portion is very small, as the government provides the bulk of the payments needed for the annuity; however, the non-taxable portion must be pro-rated over the expected life of the retiree in accordance with tax code.

A portion of the annuity, since it was paid from post-tax earnings, is not taxable, and will be shown on the annuity statements.  The non-taxable portion is very small, as the government provides the bulk of the payments needed for the annuity; however, the non-taxable portion must be pro-rated over the expected life of the retiree (and, where applicable, the expected life of the designated survivor) in accordance with tax code.

====Payment at Death====

====Payment at Death====

If an employee/retiree dies and a survivor benefit was not chosen, then any unpaid balance of employee contributions (but not government matching contributions) is paid to the beneficiary(ies) designated.<ref>As the employee pays a very small portion of the annuity, payments are made only if the employee dies before retirement or shortly thereafter (even though, for tax purposes, a retiree must pro-rate the employee contribution over a longer period based on his/her age and the age of his/her spouse or other survivor, where applicable).</ref>  If the employee/retiree did not designate any beneficiary(ies), then the "statutory order of precedence"<ref>The order of precedence is also used for payment of insurance benefits under the [[FEGLI]], any balance under the [[Thrift Savings Plan]], and unpaid compensation.</ref> is used, as follows:

If an employee/retiree dies and a survivor benefit was not chosen, then any unpaid balance of employee contributions (but not government matching contributions) is paid to the beneficiary(ies) designated.<ref>As the employee pays a very small portion of the annuity, payments are made only if the employee dies before retirement or shortly thereafter (even though, as discussed above, for tax purposes a retiree must pro-rate the employee contribution over a longer period).</ref>  If the employee/retiree did not designate any beneficiary(ies), then the "statutory order of precedence"<ref>The order of precedence is also used for payment of insurance benefits under the [[FEGLI]], any balance under the [[Thrift Savings Plan]], and unpaid compensation.</ref> is used, as follows:

*To the widow or widower,

*To the widow or widower,

*To any surviving children (in equal shares) or their descendants,

*To any surviving children (in equal shares) or their descendants,