Q – Why should I complete Designation of Beneficiary forms?
Q – How many Designation of Beneficiary forms are there?
Q – After I complete the form(s) what should I do with it?
Q – Do I need Designation of Beneficiary forms if I am married?
Q – Do I have to name my spouse as my beneficiary?
Q – Can I name more than one person as my beneficiary?
Q – Can I designate to whom I want the money to go to if the person I name dies first?
Q – I have a will, do I still need to complete designation of beneficiary forms?
Q – If I name a minor child as the beneficiary for my TSP, how will my account be managed?
Q – Why should I complete Designation of Beneficiary forms?
A – Completing Designation of Beneficiary forms assures that your assets will be distributed to the person you intended in the most timely fashion.
Q – How many Designation of Beneficiary forms are there?
A – There are five designations of beneficiary forms:
SF-2823 — FEGLI;
TSP-3 — Thrift Savings Plan;
SF-1152 — for your unpaid compensation if you should die while employed;
SF-2808 for CSRS — for your unrecovered contributions to the retirement fund. This applies only if you die before recovering the amount you contributed to the retirement fund, and have no surviving spouse or dependent child entitled to a monthly annuity.
SF-3102 for FERS – for your unrecovered contributions to the retirement fund. This applies only if you die before recovering the amount you contributed to the retirement fund, and have no surviving spouse or dependent child entitled to a monthly annuity.
Q – After I complete the form(s) what should I do with it/them?
A – All SF forms need to be signed by you and your signature must be witnessed by two people who are not beneficiaries. The SF forms should be returned to your servicing Human Resource office. The TSP-3 is electronic only and can be processed electronically including both your signature and the signature of your witness.
Q – Do I need Designation of Beneficiary forms if I am married?
A – Yes, you should still complete the Designation of Beneficiary forms to assure that the assets go to the beneficiary as quickly as possible.
Q – If I don’t complete the Designation of Beneficiary forms and die, will my assets stay with the government?
A – No, there is a standing order of precedent.
- Designated person;
- Spouse;
- Child or children equally;
- Parent or parents;
- Executor or administrator of your estate;
- Next of kin per the laws of your State of residence at time of death.
Q – Do I have to name my spouse as my beneficiary?
A – No, you can name any “legal person” as a beneficiary. “Legal person” would include any natural person or persons, Trust, corporation, or non-profit organization.
Q – Can I name more than one person as my beneficiary?
A – Yes, you can do shares. For example:
John Doe, Jr. (son) 25%
Susie Doe Smith (daughter) 25%
George Doe (son) 25%
Mary Doe (daughter) 25%
Or
Shirley Doe (spouse) 60%
John Doe, Jr. (son) 10%
Susie Doe Smith (daughter) 10%
George Doe (son) 10%
Mary Doe (daughter) 10%
There can be any number of beneficiaries with any percentages so long as it totals 100% (no fractional shares).
Q – Can I designate to whom I want the money to go to if the person I name dies first?
A – Yes, it is referred to as contingent beneficiary.
The wording is:
To Shirley Doe, spouse, if living, 100% otherwise to:
John Doe, son, 100% or multiple beneficiaries
Q – I have a Will, do I still need to complete designation of beneficiary forms?
A – Yes, a Will does not supercede the designation of beneficiary forms.
Q – I completed the designation of beneficiary forms when I was first hired, I wasn’t married then (or married to someone else) I am now married with a current Will. Is there anything I need to do about the original designation of beneficiary forms?
A – Yes, a designation of beneficiary form is valid until it is cancelled or superceded with a new form. The original designation would be complied with no matter what is in your will; even if it were not reasonable.
Q – If I name a minor child as the beneficiary for my TSP, how will my account be managed?
A – If your beneficiary is a minor at the time of your death, the Thrift Board is required to issue a check for the minors share of your account in the child’s name. This is because the Thrift Board has fiduciary responsibilities to manage your account. Upon your death, your account balance is invested in the ‘G’ Fund.