Reading your OPM annuity statement
Gross to net, line by line — and the five things to check every time.
Also check: your FEGLI options, and the survivor amount your spouse would receive — shown on the first adjustment notice each year.
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1. A statement, line by line
Here is how a typical monthly statement works from top to bottom. The figures are illustrative.
| Line | Example | What it is |
|---|---|---|
| Gross annuity | $4,000 | Your annuity before anything comes off |
| Survivor reduction | −$400 | 10% for a full FERS survivor annuity, 5% for partial |
| FEHB | −$330 | Your share of the health premium |
| FEGLI | −$45 | Basic life insurance and any options you kept |
| Dental and vision | −$60 | FEDVIP premiums, if enrolled |
| Federal tax | −$380 | Withholding per your election |
| State tax | −$90 | If your state taxes annuities and you withhold |
| Net annuity | $2,695 | What lands in your account |
In this example about a third of the gross never reaches the account. That's normal, and it's why budgeting from your gross annuity overstates what you'll have to spend. If you're under 62 and retired at your minimum retirement age, a separate FERS supplement line may appear too; see the FERS supplement.
2. When a new statement arrives
OPM sends a Notice of Annuity Adjustment whenever something changes. The regular ones:
- December — the cost-of-living adjustment. Under FERS there’s none until you turn 62, except for disability annuities, survivor annuities, and special-provision retirees such as law enforcement officers, firefighters, and air traffic controllers. See FERS and CSRS COLAs.
- January to February — new FEHB and dental/vision premiums after Open Season.
- Any time you change something — withholding, allotments, or long-term care premiums.
Online, the statement reflects changes through the previous business day, unless you made them after the monthly cutoff; then they show on next month's statement.
3. The five things to check
- The survivor reduction. It should match the election on your retirement application. A missing or wrong reduction can later be corrected retroactively — as an overpayment. See survivor benefit elections.
- The survivor amount for your spouse. The first adjustment notice each year shows the monthly survivor annuity your spouse would receive, plus an annual notice of your survivor election rights.
- The FEHB premium. After Open Season, confirm it reflects your new plan and enrollment type.
- FEGLI. Confirm the options match your election, and watch for the reductions that begin after 65. See FEGLI in retirement.
- Tax withholding. Recheck after every COLA and life change. OPM's default is a single filer, and it can refund only the current year; see OPM Services Online.
Keep your most recent adjustment notice with your important papers. It carries your claim number and the survivor amount, and your family will need both after your death. It also works as proof of income, sometimes called a verification of annuity.
4. Your 1099-R
Each January OPM issues a 1099-R for the prior year, available in Services Online. The boxes that matter most:
| Box | Shows |
|---|---|
| 1 | Gross annuity paid |
| 2a | Taxable amount — lower than box 1 because part of each payment returns your own contributions tax-free |
| 4 | Federal income tax withheld |
| 5 | Your contributions and insurance premiums |
The gap between boxes 1 and 2a is the tax-free return of what you paid into the system, which usually runs out within the first few years of retirement. The broader picture is in how retirement income is taxed.
5. Frequently asked questions
Where do I find my OPM annuity statement?
Sign in to OPM Retirement Services Online to view your most recent monthly annuity statement and several months of archived statements. OPM also mails a Notice of Annuity Adjustment whenever something changes, such as a cost-of-living adjustment, a premium change after Open Season, or a change to your withholding or allotments.
What does the annuity statement show?
Your gross annuity, each deduction or addition, and the net amount deposited. The online statement can show up to 35 deductions or additions. Common lines are the survivor reduction, FEHB, FEGLI, dental and vision premiums, federal and state tax withholding, and any allotments.
Why is my net payment so much less than my gross?
Because several items come off the gross before it reaches your account: the survivor reduction if you elected one, health and life insurance premiums, dental and vision premiums, and income tax withholding. On a typical statement these can take a quarter or more of the gross.
Does the statement show what my spouse would receive?
Yes. The first annuity adjustment notice of each year includes the monthly survivor annuity currently payable to your spouse if you die, along with an annual notice of survivor election rights. It is worth checking against the election you made at retirement.
When does a change I make show up on the statement?
Changes made through Services Online appear on the statement through the previous business day, unless they were made after the monthly cutoff. A change made after the cutoff shows up on the following month’s statement, when it takes effect.