Life happens — marriages, divorces, births, deaths. And while federal employees are good at planning ahead, one thing often gets overlooked: beneficiary designations. These documents determine who receives your Thrift Savings Plan (TSP), life insurance, and survivor benefits upon your passing, and outdated forms can lead to painful legal battles and unintended consequences.
If it’s been more than a year since you reviewed yours, this quick checklist is for you.
Why Beneficiary Updates Matter More Than You Think
For Feds, the forms on file determine who receives your money when you die. This includes your TSP, Federal Employees' Group Life Insurance (FEGLI), unpaid compensation, and survivor benefits. These designations override your will, even if it was written later.
Life changes like marriage, divorce, the birth of a child, or the death of a loved one can leave your beneficiary choices outdated. And yet, most people don’t think to check until there’s a problem.
Now is a smart time to review. Tax season is behind you, and Federal Benefits Open Season is just a few months away. As you take stock of your benefits and plan ahead, confirming your beneficiary designations should be part of the process.
What Federal Employees Need to Review
There’s no one-size-fits-all form. Each federal benefit has its own beneficiary form, so you’ll need to look at each one individually. Here’s where to start:
Federal Employees’ Group Life Insurance (FEGLI)
Review your SF 2823 to see who you've named. If it's missing or outdated, the benefit will be paid according to a set legal order — not necessarily the person you'd choose today.
Thrift Savings Plan (TSP)
Log into your TSP account and review your TSP-3 form. TSP beneficiary designations are handled separately from your other federal benefits, and your will does not apply.
Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) Annuity Benefits
Look over your SF 3102 (for FERS) or SF 2808 (for CSRS) to ensure the right person is set to receive your survivor annuity. These forms override any other instructions, even in your will.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
Unpaid Compensation and Final Paycheck
Review your SF 1152 form, which determines who receives any final payments — including your last paycheck, unused leave, or other compensation owed if you pass away while still employed.
Key Triggers That Should Prompt a Review
Your life doesn’t look the same year to year. A new marriage, a divorce, or the birth of a grandchild can shift your priorities. When things change, take a moment to look at who you've named — and whether those choices still make sense. Common triggers include:
- Marriage, divorce, or remarriage:A change in your relationship status often means your current choices no longer reflect your wishes.
- New children or grandchildren:If you’d like them to receive benefits, they need to be named directly.
- Death or incapacity of a listed beneficiary:If someone you named has passed away or can no longer manage the responsibility, it’s time to update.
- Shift in priorities:Perhaps you want to include a charity, support stepchildren, or adjust your course based on family dynamics.
These updates are simple and make it easier to carry out your wishes.
How to Make Updates (and Avoid Common Mistakes)
Updating your beneficiaries isn’t complicated, but it must be done correctly. Here's a quick list to help you cover the essentials:
- Don’t rely on your will.Only your official beneficiary forms determine who receives each benefit.
- Update each benefit separately.TSP, FEGLI, retirement annuities, and unpaid compensation all require individual forms.
- Know where to submit updates.Changes are typically made through your agency’s HR office, your retirement system, or your TSP account.
- Request confirmation after submitting.Make sure your changes were received and recorded properly.
- Avoid naming minors as beneficiaries.This can delay payments or lead to court involvement unless a legal structure is in place.
- Name contingent beneficiaries.This ensures benefits are handled properly if your primary beneficiary is no longer living.
Taking a few minutes to review and update your records now can help ensure your benefits are paid according to your wishes.
A Small Step Now Can Save Big Headaches Later
Keeping your beneficiary designations up to date is one of the simplest ways to protect your legacy — and avoid costly, time-consuming problems for your loved ones. It only takes a few minutes to review, but it can make all the difference down the road.
Get into the habit of reviewing your beneficiary choices at least once a year, or whenever a major change occurs in your life. It doesn’t take long, but it can make a big difference in making sure your benefits go to the right people.
Need help connecting the dots? A CERTIFIED FINANCIAL PLANNER™ (CFP®) who understands federal benefits can help make sure your designations align with your complete financial picture.
Have questions? Reach out to the team at Serving Those Who Serve at [email protected].
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
