Post-Retirement

The benefit is provided by reducing the retiree's annuity to pay for the cost of the insurable interest survivor annuity benefit.   The amount of the reduction is dependent on the age difference between the retiree and the individual who is named as the beneficiary of the insurable interest annuity.  Here's how the reduction to provide an insurable interest benefit is calculated:

If the person named is:

The reduction is:

Older, the same age or less than five years younger than the retiree

10 percent

5-9 years younger than the retiree

15 percent

10-14 years younger than the retiree

20 percent

15-19 years younger than the retiree

25 percent

20-24 years younger than the retiree

30 percent

25-29 years younger than the retiree

35 percent

30 or more years younger than the retiree

40 percent

The insurable interest automatically ends if the beneficiary of the insurable interest annuity dies, if you marry the person named as the beneficiary of the insurable interest annuity and elect to provide a survivor annuity benefit for that spouse, or if the named person is your spouse and you convert your insurable annuity election to a survivor annuity election.