U.S. Office of Personnel Management . . . .
ADDENDUM TO THE FEGLI BOOKLET, RI 76-21
The following changes to the FEGLI Program were enacted after the Booklet was printed:
Effective July 22, 1998:
Public Law 105-205 established an exception to using the statutory order of precedence regarding who is entitled to receive life insurance proceeds under the Federal Employees Group Life Insurance Program upon the death of an enrollee.
Pursuant to that law, the order of precedence is NOT used to pay life insurance if there is anyone expressly provided to receive the benefits in a court decree of divorce, annulment, or legal separation or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation IF it is received before the insureds death by his/her employing agencys human resources office (for employees and compensationers during the first 12 months of leave-without-pay) or in the Office of Personnel Management (for annuitants and eligible compensationers after the first 12 months of leave-without-pay).
If this exception applies, an insured may not change or submit a designation of beneficiary unless the person named in the decree, order or agreement agrees in writing or unless the decree, order or agreement is modified accordingly.
This means that if there IS a qualifying court decree, order or applicable property settlement that names someone to receive the FEGLI life insurance proceeds, THAT determines how payment will be made. If there is not, then the order of precedence listed on page 12 of the FEGLI Booklet (RI 76-21) is used.
That same law allows a court decree of divorce, annulment, or legal separation, or the terms of a court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation, to direct an individual to assign his or her life insurance to a specified person, unless previously assigned. However, those documents would merely offer direction they do not serve as the assignment itself. The insured must still validly complete an RI 76-10 Assignment of Life Insurance Form.