5 U.S.C. § 8424

Lump-sum benefits; designation of beneficiary; order of precedence

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(a) Subject to subsection (b), an employee or Member who—(1)(A) is separated from the service for at least 31 consecutive days; or(B) is transferred to a position in which the individual is not subject to this chapter and remains in such a position for at least 31 consecutive days;(2) files an application with the Office for payment of the lump-sum credit;(3) is not reemployed in a position in which the individual is subject to this chapter at the time of filing the application; and(4) will not become eligible to receive an annuity within 31 days after filing the application;is entitled to be paid the lump-sum credit. Except as provided in section 8420a, payment of the lump-sum credit to an employee or Member voids all annuity rights under this subchapter, and subchapters IV and V of this chapter, based on the service on which the lump-sum credit is based, until the employee or Member is reemployed in the service subject to this chapter.(b)(1)(A) Payment of the lump-sum credit under subsection (a) may be made only if the spouse, if any, and any former spouse of the employee or Member are notified of the employee or Member’s application.(B) The Office shall prescribe regulations under which the lump-sum credit shall not be paid without the consent of a spouse or former spouse of the employee or Member where the Office has received such additional information or documentation as the Office may require that—(i) a court order bars payment of the lump-sum credit in order to preserve the court’s ability to award an annuity under section 8445 or 8467; or(ii) payment of the lump-sum credit would extinguish the entitlement of the spouse or former spouse, under a court order on file with the Office, to a survivor annuity under section 8445 or to any portion of an annuity under section 8467.(2)(A) Notification of a spouse or former spouse under this subsection shall be made in accordance with such requirements as the Office shall by regulation prescribe.(B) Under the regulations, the Office may provide that paragraph (1)(A) may be waived with respect to a spouse or former spouse if the employee or Member establishes to the satisfaction of the Office that the whereabouts of such spouse or former spouse cannot be determined.(3) The Office shall prescribe regulations under which this subsection shall be applied in any case in which the Office receives two or more orders or decrees referred to in paragraph (1)(B)(i).(c) Under regulations prescribed by the Office, an employee or Member, or a former employee or Member, may designate one or more beneficiaries under this section.(d) Lump-sum benefits authorized by subsections (e) through (g) shall be paid to the individual or individuals surviving the employee or Member and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other individual:

First, to the beneficiary or beneficiaries designated by the employee or Member in a signed and witnessed writing received in the Office before the death of such employee or Member. For this purpose, a designation, change, or cancellation of beneficiary in a will or other document not so executed and filed has no force or effect.

Second, if there is no designated beneficiary, to the widow or widower of the employee or Member.

Third, if none of the above, to the child or children of the employee or Member and descendants of deceased children by representation.

Fourth, if none of the above, to the parents of the employee or Member or the survivor of them.

Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee or Member.

Sixth, if none of the above, to such other next of kin of the employee or Member as the Office determines to be entitled under the laws of the domicile of the employee or Member at the date of death of the employee or Member.

For the purpose of this subsection, “child” includes a natural child and an adopted child, but does not include a stepchild. (e) If an employee or Member, or former employee or Member, dies—(1) without a survivor, or(2) with a survivor or survivors and the right of all survivors under subchapter IV terminates before a claim for survivor annuity under such subchapter is filed,the lump-sum credit shall be paid.(f) If all annuity rights under this chapter (other than under subchapter III of this chapter) based on the service of a deceased employee or Member terminate before the total annuity paid equals the lump-sum credit, the difference shall be paid.(g) If an annuitant dies, annuity accrued and unpaid shall be paid.(h) Annuity accrued and unpaid on the termination, except by death, of the annuity of an annuitant or survivor shall be paid to that individual. Annuity accrued and unpaid on the death of a survivor shall be paid in the following order of precedence, and the payment bars recovery by any other person:

First, to the duly appointed executor or administrator of the estate of the survivor.

Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the survivor, to such next of kin of the survivor as the Office determines to be entitled under the laws of the domicile of the survivor at the date of death.

(Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 539; amended Pub. L. 106–361, § 3(b), Oct. 27, 2000, 114 Stat. 1402; Pub. L. 111–84, div. A, title XIX, § 1904(b)(4), Oct. 28, 2009, 123 Stat. 2617.)Editorial NotesAmendments

2009—Subsec. (a). Pub. L. 111–84 substituted “based, until the employee or Member is reemployed in the service subject to this chapter.” for “based.” in concluding provisions.

2000—Subsec. (b)(1). Pub. L. 106–361 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Payment of the lump-sum credit under subsection (a)—

“(A) may be made only if any current spouse and any former spouse of the employee or Member are notified of the application by the employee or Member; and

“(B) in any case in which there is a former spouse, shall be subject to the terms of a court decree of divorce, annulment, or legal separation issued with respect to such former spouse if—

“(i) the decree expressly relates to any portion of the lump-sum credit involved; and

“(ii) payment of the lump-sum credit would affect any right or interest of the former spouse with respect to a survivor annuity under section 8445, or to any portion of an annuity under section 8467.”

Notes of Decisions

Cited in 41 cases (20 in the last 5 years), 2008–2026 · leading case: Firestone v. Fed. Ret. Thrift Inv. Bd., 375 F. Supp. 3d 102 (D.C. Cir. 2019).

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Firestone v. Fed. Ret. Thrift Inv. Bd., 375 F. Supp. 3d 102 (D.C. Cir. 2019). · cites it 3× “5 U.S.C. § 8424 (d) ; 5 C.F.R. § 1651.2 (a)(2) ; see also 5 C.”

Evans v. Diamond, 389 F. Supp. 3d 979 (D. Utah 2019). · cites it 7× “5 U.S.C. § 8424 (d). If an employee or member dies, benefits "shall be paid to the individual or individuals surviving the employee or Member .”

Evans v. Diamond, 957 F.3d 1098 (10th Cir. 2020). “” 5 U.S.C. § 8424 (d). The statute, accordingly, restricts the method by which an employee may designate his beneficiary and prohibits distributions to anyone other than the properly designated beneficiary.”

Hewitt v. Thrift Saving Plan, 664 F. Supp. 2d 529 (D.S.C. 2009). · cites it 3× “5 U.S.C. § 8424 (d). In this case, since FRTIB claims it had no election of beneficiary form, § 8424(d) dictated that Decedent’s three children were the proper beneficiaries of his benefits, and each of his children received one-third of their father’s TSP death benefits.”

Ferguson v. Long, 885 F. Supp. 2d 294 (D.D.C. 2012). · cites it 3× “5 U.S.C. § 8424 (d). Under § 8424(d), benefits “shall be paid to the individual or individuals surviving the employee or Member and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other individual: First,…”

Byrum v. Off. of Pers. Mgmt., 618 F.3d 1323 (Fed. Cir. 2010). · cites it 2× “Byrum was entitled to receive the death benefits “derived from the interests of’ David Moulton; and the status of unrefirnded retirement contributions that ordinarily are to be paid as a lump sum according to a statutory order of precedence if no survivor is eligible for an…”

Gertz v. Warner (In re Warner), 570 B.R. 582 (Bankr. N.D. Ohio 2017). “Warner expressly designated the Debtor as a beneficiary of the TSP account pursuant to 5 U.S.C. § 8424 (c). (Docket No. 12 at ¶ 10.”

Van Den Broek v. Tang, 88 Va. Cir. 65 (Fairfax Cir. Ct. 2014). · cites it 3× “While the TSP provisions are primarily *69 contained in Subchapter III of Chapter 84, the statutory order of precedence provision is contained in subchapter II at 5 U.S.C. § 8424 (d). 5 C.F.R. 1651.1 clarifies that the order of precedence contained in § 8424(d) applies to the…”

Cieslinski v. Off. of Pers. Mgmt., 610 F. App'x 979 (Fed. Cir. 2015). “5 U.S.C. § 8424 (a). Here, it is not disputed that Mr.”

Soroka v. Off. of Pers. Mgmt., 557 F. App'x 983 (Fed. Cir. 2014). · cites it 2× “2012) (concluding that the proceeds from a decedent’s Federal Thrift Savings Plan (“TSP”) retirement account were required to be distributed to the decedent’s father, rather than her husband, because the only “ ‘signed and witnessed writing’ ” that had been submitted listed her…”

Angela Campbell v. Off. of Pers. Mgmt., 2016 MSPB 11 (MSPB 2016). · cites it 2× “5 U.S.C. § 8424 (d), (g). If there is no such beneficiary, payment is made to the widow or widower of the deceased former employee.”

Anthony Bennett v. Off. of Pers. Mgmt. (MSPB 2025). · cites it 11× “5 U.S.C. § 8424 (a); Pagum v. Office of Personnel Management, 66 M.”

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