When you pass away, your Thrift Savings Plan (TSP) and Federal Employees’ Group Life Insurance (FEGLI) become valuable assets of your estate because they’re exempt from probate court and your Last Will & Testament.
If you don’t fully understand the OPM rules for designating a beneficiary, the proceeds of these benefits may end up going to someone you never intended to include in your legacy.
How To Check Your Beneficiary Forms
The OPM does not maintain records of beneficiary forms for current federal employees. You need to check with the office of the employing agency that maintains your Official Personnel Folder (OPF). If you’re not sure how to contact them, check with your supervisor. Then again, you can save time by simply filing a new beneficiary designation form. Upon your death, only the most recent beneficiary form you’ve filed is used.
When you’re retired, death benefits are paid to the designated beneficiary of your TSP account and your FEGLI policy. If you pass away while still employed, designated beneficiaries may also receive lump sum payments from CSRS/FERS and any unpaid compensation, including unpaid annual leave.
For complete details on designating a beneficiary for each of these benefits, go to Designating a Beneficiary on the OPM website.
“Remember — if you don’t choose your beneficiaries, they’ll be chosen for you after your death.”
The Order Of Precedence When There’s No Designated Beneficiary
If you haven’t designated a beneficiary for any of these benefits, or updated their contact information, the federal government typically follows this Order of Precedence if the OPM can’t locate your beneficiary:
First: payment is made to your widow or widower.
Second: if none, payment is made to your child or children in equal shares, with the share of any deceased child distributed among that child’s descendants.
Third: if none, payment is made to your parents in equal shares or the entire amount to your surviving parent
Fourth: if none, payment is made to the executor or administrator of your estate
Fifth: if none, payment is made to your next of kin under the laws of the State where you lived at the time of your death.
According to the Office of Personnel Management (OPM), the order of precedence includes an adopted child, but it doesn’t include a stepchild you haven’t adopted or a stepparent who never adopted you.
It’s up to you to ensure your beneficiaries’ names and addresses are kept current. If any designated beneficiary predeceases you, file a new form immediately. Remember — if you don’t choose your beneficiaries, they’ll be chosen for you after your death.
