When it comes to FEHB in retirement, there are a number of advantages when a federal worker is married to another federal worker.
FEHB Premium Conversions
Federal couples (also known as a dual-fed couple), can elect to carry two self-only plans or have only one person carry FEHB while the other is covered under the spouse’s plan.
If both spouses are not retiring at the same time, you can save on premiums if the retired spouse is covered under the FEHB plan of the spouse who’s still working.
Why? Because the working spouse pays premiums with pre-tax dollars. The longer one spouse continues to work, the greater tax advantage of the premium conversion.
When both spouses are retired, the government will continue to pay part your healthcare, but you’ll both pay your portion with after-tax dollars.
Survivor Benefits For Federal Couples
Unlike couples with only one spouse retiring from federal service, dual-fed couples don’t have to name a spouse as a survivor annuitant to be covered by FEHB in retirement.
As long as each spouse has been enrolled in FEHB for five years prior to their own retirement, both can keep their coverage forever.
This gives you the option of declining the survivor benefit plan, and choosing other ways to protect your retirement income, without losing FEHB coverage.
Before making a decision, it’s wise to consult an advisor who understands the ins and outs of your federal benefits.