Order of Precedence and Designation of Beneficiary
ORDER OF PRECEDENCE AND PAYMENT OF BENEFITS
Order of Precedence
Upon your death, the Office of Federal Employees' Group Life Insurance (OFEGLI) will pay life insurance benefits in a particular order set by law. This order of precedence is:
- If you assigned ownership of your life insurance by filing an Assignment, Federal Employees Group Life Insurance (RI 76-10), OFEGLI will pay benefits:
First, to the beneficiary(ies) designated by your assignee(s), if any;
Second, if there is no beneficiary, to your assignee(s).
- If you did not assign ownership and there is a valid court order on file, OFEGLI will pay benefits in accordance with that court order.
- If you did not assign ownership and there is no valid court order on file, OFEGLI will pay benefits:
First, to the beneficiary(ies) you designated;
Second, if there is no such beneficiary, to your widow or widower;
Third, if none of the above, to your child or children, with the share of any deceased child distributed among the descendants of that child (a court will usually have to appoint a guardian to receive payment for a minor child);
Fourth, if none of the above, to your parents in equal shares, or the entire amount to the surviving parent;
Fifth, if none of the above, to the court-appointed executor or administrator of your estate;
Sixth, if none of the above, to your other next of kin as determined under the laws of the state where you lived.
If you want payment to be made differently from the order listed above, and you have not assigned your life insurance and there is no valid court order on file, you must designate a beneficiary. If you are satisfied with the order listed above, you do need not act.
Effect of Assignments and Court Orders
Assignments and court orders preempt the order of precedence.
If you assigned your life insurance, OFEGLI will pay benefits to the beneficiary(ies) designated by your assignee(s), if any. If there is no such beneficiary, OFEGLI will pay benefits to your assignee(s).
If you did not assign ownership and there is a valid court order on file, OFEGLI will pay benefits in accordance with that court order.
If No Claim Is Filed
If the person who is entitled to payment under the order of precedence does not file a claim within one year after your death (or if payment to the person who filed is forbidden by Federal law or regulation), OFEGLI can pay the person next in the order of precedence, just as if the person who would otherwise get the payment had died before you did.
By law, this payment bars any other person from collecting payment.
If the person who is entitled to payment under the order of precedence does not file a claim within two years after your death, and neither OPM nor OFEGLI has received notice that such a claim will be made, OFEGLI can pay the claimant who in OPM's judgment is equitably entitled to the payment. By law, this payment bars any other person from collecting payment.
If a valid claim has not been filed and no claim is pending four years after your death, OFEGLI returns the insurance proceeds to OPM for deposit in the Employees' Life Insurance Fund. However, OFEGLI may still pay a valid claim years after the death if no prior claim has been filed and paid.
Option C
Option C benefits are paid to you, the insured, upon the death of your spouse or eligible dependent child(ren).
If you die after your spouse or eligible dependent child(ren) die, but before Option C benefits are paid (whether or not you filed for the benefits), the payment will go to the person(s) eligible for the benefits of your Basic insurance. If you had assigned your FEGLI, Option C payment will be made under the order of precedence, excluding any previous designations of beneficiary made invalid by your assignment. Option C benefits cannot be assigned.
DESIGNATION OF BENEFICIARY
When to Designate
If you are satisfied with the order of precedence, you need not designate a beneficiary.
However, you do need to designate a beneficiary in these situations:
- If you want benefits to be paid to a person, firm, charitable organization, or other legal entity not listed in the order of precedence;
- If you want benefits to be paid in a different order from the order of precedence;
- If you want to have a contingent beneficiary, i.e., someone to receive the benefits if your preferred beneficiary dies before you do;
- If you want to designate a "common disaster" clause;
- If you want benefits to go to a trust you have established for your minor children; or
- If evidence of a valid marriage or dissolution of a marriage is not readily available.
Who Can Make a Designation?
Any insured employee, annuitant, or compensationer may designate a beneficiary. Exception: If you have assigned your insurance, you cannot designate a beneficiary. The right to designate a beneficiary transfers to your assignee(s).
Designations cannot be made by someone with a power of attorney or by a court-appointed guardian, conservator, trustee, or committee. No one can designate benefits on behalf of an insured person or assignee. Only the insured person or assignee can designate benefits.
If an insured employee, annuitant, or compensationer cannot sign a designation because of a physical impairment, but is otherwise competent, he/she can sign with an "X". If an insured employee, annuitant, or compensationer is not competent, he/she cannot complete and sign a designation form.
Designation Form
The SF 2823 (Designation of Beneficiary) is the preferred way for you to make a designation for your FEGLI benefits. You can find instructions on how to complete the SF 2823 on the reverse side of the form.
Your employing office must receive the valid and properly completed form before you die. If you are retired or insured as a compensationer, you must submit the SF 2823 to OPM. The address is: Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045. OPM must receive the valid and properly completed form before you die.
When you complete the SF 2823, your signature must be witnessed by two persons. These witnesses must also sign the SF 2823 and give their addresses. A witness cannot be someone you are naming on the form as a beneficiary.
A designation made in any other document is not valid unless the designation is specifically for your FEGLI benefits, the document is signed by you, witnessed and signed by two persons not named as beneficiaries, received by the appropriate office before you die, and does not contain any errors that would make it invalid.
The SF 2823 requests the social security number of your beneficiary. If your beneficiary does not have a social security number, you should leave that space blank. In addition, if you do not know your beneficiary's social security number or do not want to provide it, you should leave that space blank. Your employing office will still accept the form. Having the social security number will help the Office of Federal Employees' Group Life Insurance (OFEGLI) locate missing beneficiaries and therefore speed up the payment process for difficult cases. However, the number is not absolutely necessary.
Receipt before Death
Your employing office must receive your designation of beneficiary before you die for your designation to be valid. For retirees and those insured as compensationers, OPM is your employing agency. A designation delivered on a weekend or Federal holiday or a day when the office is closed for any reason is not "received," and is not valid, until the next workday. If you die before your employing office's receipt of a new designation of beneficiary, benefits will be paid in accordance with your previous designation on file or under the order of precedence, if there is no previous valid designation.
You should make sure that you obtain the duplicate copy (or copy of the original) of your designation, signed and receipted by an authorized official of your employing agency, to ensure that your designation is properly on file.
Importance of Updating Designations
It is your responsibility to ensure that your designation of beneficiary remains accurate and reflects your intentions. Benefits will be paid based on a valid designation, regardless of whether that designation still reflects your intentions.
You may want to consider completing a new designation form whenever you have a significant change in your life, such as a marriage, divorce, or death. Be sure it remains accurate and reflects your intentions. A divorce does not invalidate a designation that names your former spouse as beneficiary. You need to complete a new SF 2823 to remove a former spouse.
You need to keep your designated beneficiaries' addresses current. If you do not, OFEGLI may not be able to locate your beneficiary, and therefore benefits will not be paid to that person. The preferred way is to file a new designation of beneficiary whenever a beneficiary's address (or name) changes. You may also ask your employing office to attach a beneficiary's new address to your current designation of beneficiary form; your employing office needs to ensure the attachment is forwarded along with the designation of beneficiary form when you retire or die. A new address cannot be added directly to the designation of beneficiary form itself, since any cross outs, erasures, or alterations in your form may invalidate it.
Naming Multiple Beneficiaries
If you want to name more than one beneficiary, there are two ways you can do this:
- You can designate percentages or fractions to go to each person, e.g., 50 Percent (or 1/2) to Kirby, 25 Percent (or 1/4) to Kelly, and 25 Percent (or 1/4) to Lester. The total must add up to 100 Percent (or 1.0 for fractions).
- You can designate types of insurance to go to various beneficiaries, e.g., Basic insurance to Lynn, Option A to Mike, and Option B to Mildred.
You cannot designate dollar amounts, and you cannot designate an animal, such as a pet. You can designate a charitable organization or a person who lives in a foreign country.
If the SF 2823 (Designation of Beneficiary) does not have enough room for you to list all your beneficiaries, you can attach more names. Write "SEE ATTACHED" in Part B of the SF 2823. On your attachment, print your name, date of birth, and Social Security number at the top. Then list the information required in Part B of the SF 2823 for each of your beneficiaries. Sign the SF 2823 and the attachment. The same witnesses should witness both of your signatures and sign both the SF 2823 and the attachment. You may use this sample attachment:
Attachment to my SF 2823 (Designation of Beneficiary)
dated _______________
Name: _________________________________
Date of Birth: ___________________________
Social Security Number: __________________
I hereby designate:
| First name, middle initial, last name |
SSN |
Address |
Relationship |
Percent/fraction designated |
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Total (Must equal 100 Percent or 1.0) __________
Signature: ___________________________ Date: __________________
Witnesses to Signature:_______________________ Date: _______________
Witnesses to Signature:_______________________ Date: _______________
Agency Representative Signature: ___________________ Date: ____________
Naming Contingent Beneficiaries
A contingent beneficiary is someone to receive the benefits if the person you designate dies before the Insured dies. If you want to name a contingent beneficiary, you can follow the example below on your SF 2823:
| |
John M. Parrish, if living |
100 Percent |
| |
Otherwise to: Susan A. Parish |
100 Percent |
Naming Your Estate
You can choose to have your FEGLI benefits paid to your estate when you die. If you want to name your estate, do the following in Part B of the SF 2823:
Common-Disaster Clause
A common-disaster clause is a statement on the designation that says that a designated beneficiary only gets the benefits if he/she survives you by a specified minimum number of days. The number of days specified cannot exceed 30.
You can name an alternate to receive the benefits in this case. If you do not name an alternate, benefits will be paid according to the order of precedence.
Example
Norm wanted to designate his wife as his beneficiary, but only if she survived him by a certain length of time. He added a common disaster clause on his SF 2823, stating that 100 Percent of the benefits are to be paid to "Nina A. Smith, if she survives me by 3 weeks; otherwise, 50 Percent to Oscar B. Smith and 50 Percent to Odette C. Smith."
Employing Office Actions
Your employing office may review your designation of beneficiary to verify that it appears to have been completed properly. They will keep the original copy in your Official Personnel Folder, or its equivalent. The duplicate copy (or a copy of the original), dated and signed by an authorized agency official, is returned to you. Your employing office will keep all prior designations of beneficiary on file.
You (and not your agency or anyone else) are responsible for completing a designation properly. If your employing office accepts a form that is not completed properly, that does not make the form valid.
Invalid and Unacceptable Designations
These are some of the things that may cause a designation to be invalid or unacceptable:
- You do not sign the designation.
- The designation is signed by your personal representative, power of attorney, or guardian instead of you.
- The designation is not signed by two witnesses.
- The designation contains one or more cross outs, erasures, or alterations.
- Your employing office does not receive your designation of beneficiary until after you die.
- You have assigned your insurance, and you, not your assignee(s), signed the designation.
- One or both of the witnesses is also named as a bebeficiary, and there are no remaining (non-witnessing) beneficiaries named on the designation. (If there are remaining beneficiaries, the designation is not invalid; however, payment will not be made to any beneficiary who served as a witness. Payment will be distributed to the remaining beneficiaries as if the beneficiary(ies) who served as a witness died before you.)
- The beneficiaries named on the original and the duplicate copy of the designation of beneficiary are different.
- Your name, as shown in the body of the designation, is significantly different from your signature. The difference is not significant if initials of first and middle names are used in one place and full names in the other.
- The amounts you designated do not add up to 100 Percent (or 1.0, if you designated fractions).
- You do not name a specific beneficiary. Examples of this are:
- Per stirpes designations - ones that provide for the equal distribution of benefits among the children of a deceased named beneficiary. You may want to consider a designation like this, instead:
Hector Gonzales, my son, 100 Percent, if living
Otherwise to the estate of Hector Gonzales
You could then specify the per stirpes terms in your will. If Hector is not living when you die, OFEGLI will pay your estate. The estate will follow the terms of the will which include the per stirpes terms.
- A designation in which the beneficiary does not yet exist (e.g., "Mary Smith's children, born and unborn", or "TBD".)
Other Errors to Avoid
To ensure proper payment to your beneficiaries, you should avoid these errors when completing a designation of beneficiary form:
- Not stating the given name of the beneficiary (e.g., "Mrs. Patrick Doe" instead of "Penny Doe").
- Making provisions that cannot be recognized, such as "payment of just debts" or "to Raymond, if he stays in college."
- Not clearly stating that you are naming a contingent beneficiary (e.g., "Rachel Jones or Simon Jones" instead of "Rachel Jones, if living; otherwise to Simon Jones").
The back of the SF 2823 ( Designation of Beneficiary) contains examples of several different types of designations, showing the correct way to make each type.
Payment When Designation Is Invalid
OFEGLI will make payment in accordance with your last valid designation of beneficiary (or according to the order of precedence, if there is no designation) when your latest designation form:
- Lacks either your signature or witnesses' signature(s);
- Was not received by your employing office before your death; or
- Was signed while you were incompetent or under undue influence, as found by a court of competent jurisdiction.
OFEGLI will make payment in accordance with the statutory order of precedence when your latest designation form:
- Names a beneficiary who died before you, and there are no other surviving named beneficiaries;
- Names a beneficiary who forfeited his/her right to the proceeds by willful and malicious wrongdoing which caused your death (and no other beneficiaries were named);
- Names a trust that was never established (and no other beneficiaries were named); or
- Names an entity that does not exist, or for which there is no legitimate, recognized successor organization (and no other beneficiaries were named).
Employing Office Advice to Employees
When you become insured, your employing office should give you a copy of the FEGLI Booklet (FE 76-21, or FE 76-20 for Postal employees) or let you know that a copy is available on OPM's website. That Booklet lists the order of precedence and discusses the option of designating a beneficiary.
From time to time employing offices should remind their employees that changes in family status, without a corresponding change in designation of beneficiary, could result in benefits not being paid the way you want.
However, you, not your agency, are solely responsible for ensuring that your designation is correct and accurately reflects your intentions.
Designations for Other Federal Benefits
Completion of the SF 2823 (Designation of Beneficiary) does not designate any other type of benefits - only FEGLI. There are separate forms to be used for other types of designations, as follows:
- SF 2808 (Designation of Beneficiary, CSRS)
- SF 3102 (Designation of Beneficiary, FERS)
- SF 1152 (Designation of Beneficiary, Unpaid Compensation of Deceased Civilian Employee)
- TSP 3 (Designation of Beneficiary, Federal Retirement Thrift Savings Plan)
You can download all the forms from the OPM Designations of Beneficiary page on the FEGLI website.
DESIGNATING A TRUST
Information Required
You can designate a person or institution as a trustee under the terms of a trust agreement to receive the life insurance benefits upon your death.
To make sure that these designations are clear and to allow quick identification of the entitled party, OPM has established suggested formats to use for these designations. To be valid, the trustee designation must be attached to and made a part of the designation of beneficiary form. The employing office should mark the attachment as received in the same manner as the designation of beneficiary in case it gets separated from the designation. The designation of beneficiary form should state "See attached" in the space for the designation.
While it is not absolutely necessary to use the OPM-established formats, the following information must be included for the designation to be valid:
- A statement that the FEGLI death benefit is to be paid to the trustee or successor trustee, and
- The name and date of the Trust (for inter vivos trusts).
Inter Vivos Trusts
An inter vivos trust is one that you establish during your lifetime.
This is a suggested format for this type of trust.
Name of Insured (please print): ______________________________________
Social Security Number of Insured: ___________________________________
INTER VIVOS TRUSTEE DESIGNATION
TO BE ATTACHED TO AND MADE PART OF DESIGNATION OF BENEFICIARY DATED______________________________________
I request that the amount payable under the FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM (Proceeds) be paid to the Trustee(s) or Successor Trustee(s) as provided under (Name of Trust Agreement) __________________________________ bearing the date of ______________ executed by me.
I further request that in the case of the failure of said Trustee(s) to be appointed as such or to qualify as such for any reason, or the termination for any reason of the trust prior to my death that the Proceeds shall be paid to:
| Name |
Address |
Relationship |
Share |
| ________________ |
________________ |
________________ |
________________ |
| ________________ |
________________ |
________________ |
________________ |
| ________________ |
________________ |
________________ |
________________ |
The Office of Federal Employees' Group Life Insurance (OFEGLI) shall not be responsible for the application or disposition of the proceeds by said Trustee and the receipt by said Trustee shall fully discharge OFEGLI's liability under the FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM.
____________________________________
Signature of Insured/Assignee (Only the Insured/Assignee may sign. Signatures by guardians, conservators or through a power of attorney are not acceptable.) |
______________________________
Date of execution (Month, day, year) |
Two Witnesses to Signature (A witness is not eligible to receive payment as a beneficiary):
_________________
Signature of witness |
______________________
Number and street |
_____________________________
City, state and ZIP code |
_________________
Signature of witness |
______________________
Number and street |
_____________________________
City, state and ZIP code |
Testamentary Trusts
A testamentary trust is one that you create by your will at death.
This is a suggested format for this type of trust.
Name of Insured (please print): __________________________________
Social Security Number of Insured: _______________________________
TESTAMENTARY TRUSTEE DESIGNATION
TO BE ATTACHED TO AND MADE PART OF DESIGNATION OF BENEFICIARY DATED _________________
I request that the amount payable under the FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM (Proceeds) be paid to the Trustee(s) or Successor Trustee(s) as provided under my Last Will and Testament, and I further request that in the case of the failure of said Trustee to be appointed as such or to qualify as such by reason of non-probate of any Will to that effect or for any other reason whatsoever, the Proceeds shall be paid to:
| Name |
Address |
Relationship |
Share |
| ________________ |
________________ |
________________ |
________________ |
| ________________ |
________________ |
________________ |
________________ |
| ________________ |
________________ |
________________ |
________________ |
The Office of Federal Employees' Group Life Insurance (OFEGLI) shall not be responsible for the application or disposition of the proceeds by said Trustee and the receipt by said Trustee shall fully discharge OFEGLI's liability under the FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM.
____________________________________
Signature of Insured/Assignee (Only the Insured/Assignee may sign. Signatures by guardians, conservators or through a power of attorney are not acceptable.) |
______________________________
Date of execution (Month, day, year) |
Two Witnesses to Signature (A witness is not eligible to receive payment as a beneficiary):
_________________
Signature of witness |
______________________
Number and street |
_____________________________
City, state and ZIP code |
_________________
Signature of witness |
______________________
Number and street |
_____________________________
City, state and ZIP code |
Other Formats
If you want to use some other format, cannot provide the information requested above, or need additional information about designating a trust, please contact OFEGLI in writing at P.O. Box 2627, Jersey City, NJ 07303-2627, or call 1-800-633-4542.
CHANGING OR CANCELING DESIGNATIONS
Your Right to Change or Cancel
Unless you have assigned your life insurance, or (effective July 22, 1998) your employing office has received a valid court order requiring benefits to be paid to a specific person(s), you have the right to change or cancel your designation of beneficiary at any time, without the knowledge or consent of any previous beneficiary.
Changing Your Designation of Beneficiary
To change your designation of beneficiary, complete a new designation form, SF 2823, and submit it to your employing office. This will supersede any prior designation.
If you want to cancel your current designation without naming a new beneficiary, you need to complete a new designation form and submit it to your employing office. On the form write "Cancel Prior Designations" in Part B. When you die, benefits will be paid according to the order of precedence.
How Long Does My Designation Last?
Your designation of beneficiary remains valid until one of the following things happen:
- You submit a valid new designation either naming a different beneficiary or canceling your previous designation;
- You cancel your insurance;
- Your insurance as an employee terminates (your designation automatically cancels 31 days after the date of the termination). Exception: If you become insured as an annuitant or compensationer, your designation continues;
- Your annuity terminates (your designation automatically cancels the day your annuity terminates). Exception: If you are entitled either to OWCP benefits (and determined by the Department of Labor to be unable to return to duty) or to an immediate annuity under another provision of retirement law, your insurance and your designation continue;
- Your compensation stops or the Department of Labor determines that you are able to return to duty (your designation automatically cancels the day of the determination or the day your compensation stops). Exception: If you are entitled to continue insurance as an annuitant or you return to Federal service on the day after compensation terminates, your insurance and your designation continue;
- The effective date of an assignment of insurance (if an assignment has been made).
If you separate from Federal service and convert your life insurance to a private policy, any designation of beneficiary you made under the FEGLI Program does not convert. If you wish to designate a beneficiary under your conversion policy, you must contact the insurance company that issued the conversion policy.
If you transfer from one agency to another, and your FEGLI continues, your designation of beneficiary remains in effect. Exception: If your transfer to another agency was before November 17, 1986, any designation completed before that date is invalid. You must file a new designation if you do not want benefits paid according to the order of precedence.
Your employing office must alert OFEGLI to any designations and subsequent transfers made prior to November 17, 1986, whenever life insurance forms are sent to OFEGLI.
IF YOUR BENEFICIARY IS A MINOR
Payment to Minors Barred
A minor is a child under age 18. If the State where the child lives sets a lower age for reaching adulthood, that lower age applies.
OFEGLI cannot pay benefits to a minor.
What Will OFEGLI Do?
If the beneficiary is a minor - whether by designation or under the order of precedence - OFEGLI will pay a court-appointed guardian, if there is one. Parents - biological or adoptive - are not automatic guardians. A court must appoint a guardian and grant to the guardian the authority to collect money on behalf of the child. The guardian then can submit a claim to OFEGLI with proof of the guardianship, and benefits will be paid to the guardian on behalf of the minor.
If there is no court-appointed guardian, and the proceeds are $10,000 or more, OFEGLI will hold the money in an interest-bearing account until the minor reaches legal age. At that time, the child can apply for the proceeds on his/her own behalf.
If there is no court-appointed guardian, and the proceeds are under $10,000, OFEGLI will pay the minor's parent(s). The parent(s) must agree in writing to:
- Hold the money for the child until he/she reaches legal age;
- Account for the money to the child when the child reaches legal age; and
- Indemnify OFEGLI (meaning hold OFEGLI harmless in a possible future lawsuit) in the event the parent(s) misuses the funds.
If the parent(s) do not agree in writing to the three conditions, a court-appointed guardian or court-appointed conservator can be paid. If there is no court-appointed guardian or court-appointed conservator, the proceeds will be held in an interest-bearing account until the minor reaches legal age. At that time, the child can apply for the proceeds on his/her own behalf.
ANNUITANTS AND COMPENSATIONERS
Continuing Designations
When you are eligible to continue your FEGLI as an annuitant or compensationer, any valid designation of beneficiary on file with your employing office remains valid, unless you change or cancel the designation or your annuity or compensation stops.
Procedures
When you retire, unless you elect to convert your insurance, your employing office must attach any SF 2823 or SF 54 (a previous version of the Designation of Beneficiary), RI 76-10 (Assignment), and/or court order directing payment of FEGLI benefits, to your retirement application and send it, together with the original SF 2821 (Agency Certification of Insurance Status), and all other FEGLI documents to OPM's retirement office.
If you are separating for disability retirement after a finding of total disability has been made by OPM, your employing office will send the SF 2823 (Designation of Beneficiary) and/or court order with the final SF 2806/SF 3100 (Individual Retirement Record).
When you become insured as a compensationer (see "Continuing FEGLI Coverage as a Compensationer"), your employing office must send any SF 2823 or SF 54 (Designation of Beneficiary), RI 76-10 (Assignment), and/or court order directing payment of FEGLI benefits, together with the original SF 2821 (Agency Certification of Insurance Status), and all other FEGLI documents to OPM's retirement office.
FERS MRA+10 Retirements
If you are a separating employee eligible to retire under FERS MRA+10 provisions, but you do not file an application, your employing office must keep any current designation of beneficiary, assignment, and/or court order directing payment of FEGLI benefits in your Official Personnel Folder. Your employing office will check the appropriate box on the SF 2821 (Agency Certification of Insurance Status) to show that the designation has been retained.
When you later apply for retirement, the retirement system will request your designation and all other FEGLI documents from the National Personnel Records Center. Your most recent designation on file will be made valid upon reinstatement of your life insurance. If you want to change your designation, contact OPM at Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.
While Insured as an Annuitant or Compensationer
An annuitant or compensationer has the same rights as an employee to make, change, or cancel a designation. See section on "Your right to Change or Cancel" in this chapter.
If you are retired or insured as a compensationer, you must submit any new designation of beneficiary to OPM's retirement office. (regardless of the retirement system you are retired under). Send your completed designation of beneficiary to Retirement Operations Center, Retirement Information and Correspondence Branch P.O. Box 45, Boyers, PA 16017. Send assignments and/or court orders directing payment of FEGLI benefits to the same address.
OPM must receive the designation of beneficiary, assignment, and/or court order before you die.
Reemployed Annuitants
If you are a reemployed annuitant, you should submit any new designation of beneficiary to OPM, Retirement Operations Center, Retirement Information and Correspondence Branch, P.O. Box 45, Boyers, PA 16017-0045. If you have insurance coverage through your reemployment (premiums are withheld from your pay, not your annuity), you may also file your designation with your employing office; however, your employing office must send it to OPM as soon as possible after receiving it. Your employing office must enter the words "Reemployed Annuitant" and your retirement claim number on the designation form before sending it to OPM.
COURT ORDERS
Effect of a Court Order
Effective July 22, 1998, FEGLI benefits must be paid in accordance with the terms of a valid court order, regardless of whether you actually complete a designation of beneficiary form complying with the court order.
The court order supersedes any of your prior designations. When such a court order is in effect, you cannot validly change your designation or make a new designation, unless the person(s) named in the court order agree(s) in writing or unless the court order is subsequently modified. Your employing office may accept a designation from you, but that does not make it valid.
Submission of Court Order
To be valid, a certified copy of the court order must be submitted to your employing office on or after July 22, 1998, and before your death. Anyone can submit the court order. The date of the court order itself is not relevant. But the date the agency or retirement system (as applicable) received the court order is relevant. If someone submitted a court order before July 22, 1998, it is not valid and the Office of Federal Employees' Group Life Insurance (OFEGLI) cannot honor it. The court order must be resubmitted.
If you are an annuitant, the court order must be sent to OPM at Retirement Operations Center, Retirement and Correspondence Branch, P.O. Box 45, Boyers, PA 16017-0045. If you are a compensationer, during the first 12 months of nonpay status the court order must go to your employing office. After you separate or complete 12 months in nonpay status, the court order must be sent to OPM.
Disposition of Court Order
Your employing office must file any court order in your Official Personnel Folder (OPF) (or its electronic equivalent). Your employing office must clearly stamp the court order with the receipt date and flag your OPF in some way to indicate that it contains a court order. Your employing office will not review the court order or make any determination on its validity.
If your employing office receives a subsequent court order for you, it should also date stamp and file it in your OPF, with the previous court order(s). Your employing office should send all court orders, along with the other life insurance forms, to either OFEGLI (at your death) or OPM (at your retirement). At the time of your death, OFEGLI will determine which court order, if any, is valid for payment of benefits.
If you submit a designation of beneficiary when you have a court order on file, your employing office should certify its receipt, and file it in your OPF. Your employing office should notify you that there is a court order on file and that the designation may not be valid. At the time of your death, OFEGLI will determine whether the court order is still in effect or whether benefits should be paid according to the designation.
HISTORICAL INFORMATION
Transfers from One Agency to Another
Until November 1986, designations of beneficiary automatically cancelled when an employee transferred from one agency to another. Since November 1986, designations remain valid when an employee changes agencies.
Court Orders
Until July 22, 1998, court orders requiring payment of FEGLI benefits in a specific way had no validity under the FEGLI law. Payments were made in accordance with the order of precedence or in accordance with a valid assignment. Effective July 22, 1998, court orders preempt the order of precedence if they are received after that date and before your death in the appropriate office (agency employing offices for employees, OPM for those insured as annuitants or compensationers).
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