[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1651.2]

[Page 274-276]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1651--DEATH BENEFITS--Table of Contents
 
Sec. 1651.2  Entitlement to benefits.

    (a) Death benefit payments made before the participant has completed 
a withdrawal election. If a participant dies before completing a 
withdrawal election, the account will be paid to the individual or 
individuals surviving the participant in the following order of 
precedence:
    (1) To the beneficiary or beneficiaries designated by the 
participant on a properly completed and filed Form TSP-3, Designation of 
Beneficiary, in accordance with Sec. 1651.3;
    (2) If there is no designated beneficiary, to the widow or widower 
of the participant in accordance with Sec. 1651.5;
    (3) If none of the above in paragraphs (a)(1) and (a)(2) of this 
section, to the child or children of the participant and descendants of 
deceased children by representation in accordance with Sec. 1651.6;
    (4) If none of the above in paragraphs (a)(1) through (a)(3) of this 
section, to the parents of the participant or the

[[Page 275]]

surviving one of them in accordance with Sec. 1651.7;
    (5) If none of the above in paragraphs (a)(1) through(a)(4) of this 
section, to the duly appointed executor or administrator of the estate 
of the participant in accordance with Sec. 1651.8;
    (6) If none of the above in paragraphs (a)(1) through (a)(5) of this 
section, to the next of kin of the participant who are entitled under 
the laws of the state of the participant's domicile at the date of the 
participant's death in accordance with Sec. 1651.9.
    (b) Death benefit payments made after the participant has completed 
a withdrawal election. (1) The death benefit will be paid in accordance 
with the order of precedence as set forth in paragraph (a) of this 
section if the Board learns that the participant has died after having 
completed an election to withdraw his or her TSP account balance in the 
form of a single payment or monthly payments (whether or not the 
participant has requested that all or part of such payments be 
transferred to an eligible retirement plan), but the account balance has 
not yet been paid out in accordance with such election.
    (2) The death benefit will be paid as a single payment to the joint 
life annuitant if the Board learns that the participant has died after 
having completed an election to withdraw his or her TSP account balance 
in the form of a joint life annuity, but the annuity has not yet been 
purchased.
    (3) The death benefit will be paid pro rata as a single payment to 
the beneficiary(ies) designated on Form TSP-11-B, Beneficiary 
Designation for a TSP Annuity, if both the participant and the joint 
annuitant die after the par ticipant has completed an election to 
withdraw his or her TSP account balance in the form of a joint life 
annuity that includes a cash refund, but before the annuity has been 
purchased.
    (4) The death benefit will be paid in accordance with the order of 
precedence as set forth in paragraph (a) of this section, if the Board 
learns that--
    (i) Both the participant and the joint annuitant have died after the 
participant has completed an election to withdraw his or her TSP account 
balance in the form of a joint life annuity that does not include a cash 
refund, but the annuity has not yet been purchased; or
    (ii) Both the beneficiary(ies) named under a cash refund election 
and the joint annuitant have died after the participant has completed an 
election to withdraw, but the annuity has not yet been purchased.
    (5) The death benefit will be paid pro rata to the beneficiary(ies) 
designated on the Form TSP-11-B if the Board learns that the participant 
has died after having completed an election to withdraw his or her TSP 
account balance in the form of a single life annuity that includes 
either a cash refund or 10-year certain feature, but the annuity has not 
yet been purchased.
    (6) The death benefit will be paid in accordance with the order of 
precedence set forth in paragraph (a) of this section if the Board 
learns that the participant and all beneficiaries designated on a Form 
TSP-11-B have died after the participant has completed an election to 
withdraw his or her TSP account balance in the form of a single life 
annuity that includes either a cash refund or a 10-year certain feature, 
but the annuity has not yet been purchased.
    (7) The death benefit will be paid in accordance with the order of 
precedence as set forth in paragraph (a) of this section if a 
participant dies after having completed an election to withdraw his or 
her TSP account balance in the form of a single life annuity that does 
not include either a cash refund or 10-year certain feature, but before 
the annuity has been purchased.
    (8) If a participant dies after the annuity purchase has been 
completed, benefit payments will be provided in accordance with the 
annuity method selected.
    (c) If a participant dies with any portion of his or her TSP account 
in an investment fund other than the G Fund, the Board will transfer the 
entire account into the G Fund after receiving written notice of the 
participant's death. The account will continue to accrue earnings at the 
G Fund rate in accordance with 5 CFR part 1645 until it is paid in 
accordance with the order of

[[Page 276]]

precedence set forth in paragraph (a) of this section.

[62 FR 32429, June 13, 1997, as amended at 64 FR 31062, June 9, 1999]