Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Designating the Beneficiary of Your Federal Life Insurance Policy

beneficiaryAs a federal employee or retiree under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS), you must make sure that you have properly designated a beneficiary on your federal life insurance policy, or your policy benefits will be paid according to a specific order of preference.

 

The Designation of a Beneficiary is a legal document that summarizes how benefits will be compensated in the event of your death. You are not required to complete this form if you want your benefits to be distributed according to the order of precedence specified by your particular policy. However, if you want benefits paid to someone else or in a different order, you must designate a beneficiary.

Order of Precedence

With the exception of Federal Employees’ Group Life Insurance (FEGLI), benefits for life insurance, retirement, Thrift Savings Plan (TSP) and unpaid compensation are automatically dispersed in the following order:

FEGLI Designation

For FEGLI, there is an exception to the order of precedence that is indicated above. If you designated ownership of your FEGLI policy, benefits will be paid in the following order:

If you did not designate FEGLI ownership, and a valid court order is on file, benefits will be paid according to the court order. The court order supersedes any of your prior designations and the rest of the order of precedence if the appropriate office has received a certified copy of the court order on or after July 22, 1998, and before your death.

Make Sure Your Designation Remains Accurate

You are responsible for ensuring that your Designation of Beneficiary form remains accurate and reflects your current intentions. Take note that benefits will be paid based on a valid designation. Whenever you have an important change in your life, such as a death, divorce or marriage, you should review your beneficiary designation. A divorce does not invalidate a designation that names your former spouse as beneficiary; you must fill out a new designation form. You should also file a new form if there is a change in a beneficiary’s name or address.

 

Some Key Points for Designation of Beneficiary Documents

Some Common Errors that Could Invalidate Your Designation Form

Designation of Beneficiary forms include instructions and examples of how to complete the form. These forms must be complete and accurate. A designation may be invalid or unacceptable if:

 

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