Federal employees have a choice of where or who gets their contributions, life insurance and TSP money when they pass away. However, it’s important for employees to be aware that completing certain forms is necessary to ensure their money reaches the intended recipient. Not only is this important for employees but also for retirees as well since there can be a lump sum payout of contributions that are paid to someone.
Why is this important? If you don’t specify a recipient, your money may go through a probate process before reaching your intended beneficiary. To understand the implications, it’s advisable to consult an attorney. Additionally, if no recipient is specified, the government will follow the standard order of precedence for payout, which may not align with your best interests.
So how can you ensure your money gets to the right person or entity? By completing the forms listed below:
- TSP: You will need to log in to the TSP website to name your beneficiary and contingents.
- FEGLI: SF-2823 found HERE. Of course, only submit this if you have FEGLI
- Unpaid Compensation: SF-1152 found HERE. This is for the last paycheck
- Retirement system contributions: SF-2808 for CSRS found HERE or SF-3102 for FERS found HERE