PART 1651—DEATH BENEFITS Authority: 5 U.S.C. 8424(d), 8432d, 8432(j), 8433(e), 8435(c)(2), 8474(b)(5) and 8474(c)(1). Source: 62 FR 32429, June 13, 1997, unless otherwise noted. § 1651.1 Definitions. (a) Definitions generally applicable to the Thrift Savings Plan are set forth at 5 CFR 1690.1. (b) As used in this subpart: Administrative finding Death benefit Order of precedence Required beginning date Required minimum distribution [68 FR 35509, June 13, 2003, as amended at 74 FR 63062, Dec. 2, 2009; 78 FR 57784, Sept. 20, 2013; 84 FR 46423, Sept. 4, 2019; 85 FR 40571, July 7, 2020; 87 FR 31685, May 24, 2022] § 1651.2 Entitlement to funds in a deceased participant's account. (a) Death benefits. (1) To the beneficiary or beneficiaries designated by the participant in accordance with § 1651.3; (2) If there is no designated beneficiary, to the spouse of the participant in accordance with § 1651.5; (3) If there are no beneficiaries or persons as described 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 § 1651.6; (4) If there are no beneficiaries or persons as described in paragraphs (a)(1) through (a)(3) of this section, to the parents of the participant in equal shares or entirely to the surviving parent in accordance with § 1651.7; (5) If there are no beneficiaries or persons as described 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 § 1651.8; or (6) If there are no beneficiaries or persons as described in paragraphs (a)(1) through (a)(5) of this section, to the next of kin of the participant who is or are entitled under the laws of the state of the participant's domicile on the date of the participant's death in accordance with § 1651.9. (b) TSP withdrawals. (1) If the participant requested a single life annuity with no cash refund or 10-year certain feature, the TSP record keeper will pay the funds as a death benefit in accordance with paragraph (a) of this section. (2) If the participant requested a single life annuity with a cash refund or 10-year certain feature, the TSP record keeper will pay the funds as a death benefit to the beneficiary or beneficiaries designated by the participant on the annuity portion of the TSP post-employment distribution request, or as a death benefit in accordance with paragraph (a) of this section if no beneficiary designated on the withdrawal request survives the participant. (3) If the participant requested a joint life annuity without additional features, the TSP record keeper will pay the funds as a death benefit to the joint life annuitant if he or she survives the participant, or as a death benefit in accordance with paragraph (a) of this section if the joint life annuitant does not survive the participant. (4) If the participant requested a joint life annuity with a cash refund or 10-year certain feature, the TSP record keeper will pay the funds as a death benefit to the joint life annuitant if he or she survives the participant, or as a death benefit to the beneficiary or beneficiaries designated by the participant on the annuity portion of the TSP post-employment distribution request if the joint life annuitant does not survive the participant, or as a death benefit in accordance with paragraph (a) of this section if neither the joint life annuitant nor any designated beneficiary survives the participant. (5) If a participant dies after annuity payments have begun, the annuity vendor will make or stop the payments in accordance with the annuity method selected. (c) TSP loans. (d) TSP investments. [68 FR 35509, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 80 FR 52174, Aug. 28, 2015; 87 FR 31685, May 24, 2022] § 1651.3 Designation of beneficiary. (a) Designation requirements. (b) Eligible beneficiaries. (c) Validity requirements. (1) Be received by the TSP record keeper on or before the date of the participant's death; (2) Identify the participant in such a manner so that the TSP record keeper can locate his or her TSP account; (3) Be signed and properly dated by the participant and signed and properly dated by one witness: (i) The participant must either sign the designation of beneficiary in the presence of the witness or acknowledge his or her signature on the designation of beneficiary to the witness; (ii) A witness must be age 21 or older; and (iii) A witness designated as a beneficiary will not be entitled to receive a death benefit payment; if a witness is the only named beneficiary, the designation of the beneficiary is invalid. If more than one beneficiary is named, the share of the witness beneficiary will be allocated among the remaining beneficiaries pro rata; (4) Designate primary beneficiary shares which when summed equal 100%; (5) Contain no substantive alterations (e.g., struck-through shares or scratched-out names of beneficiaries); (6) Designate each primary and each contingent beneficiary in such a manner so that the TSP record keeper can identify the individual or entity; (7) Not attempt to designate beneficiaries for the participant's traditional balance and the participant's Roth balance separately; and (8) Be received by the TSP record keeper not more than 365 calendar days after the date of the participant's most recent signature. (d) Will. [87 FR 31685, May 24, 2022] § 1651.4 How to change a designation of beneficiary. (a) Change. (b) [Reserved] (c) Will. [87 FR 31686, May 24, 2022] § 1651.5 Spouse of participant. (a) For purposes of payment under § 1651.2(a)(2) and establishment of beneficiary participant accounts under § 1651.19, the spouse of the participant is the person to whom the participant was married on the date of death. A person is considered to be married even if the parties are separated, unless a court decree of divorce or annulment has been entered. The laws of the jurisdiction in which the marriage was initially established will be used to determine whether the participant was married on the date of death. (b) If a person claims to have a marriage at common law with a deceased participant, the TSP record keeper will pay benefits to the putative spouse under § 1651.2(a)(2) in accordance with the marital status shown on the most recent Federal income tax return filed by the participant. Alternatively, the putative spouse may submit a court order or administrative adjudication determining that the common law marriage is valid. [71 FR 9897, Feb. 28, 2006, as amended at 75 FR 78879, Dec. 17, 2010; 78 FR 57784, Sept. 20, 2013; 87 FR 31686, May 24, 2022] § 1651.6 Child or children. If the account is to be paid to the child or children, or to descendants of deceased children by representation, as provided in § 1651.2(a)(3), the following rules apply: (a) Child. (b) Descendants of deceased children. (c) Adoption by another. (d) Parentage disputes. (1) A court order or other administrative finding establishing parentage; or (2) Documentation sufficient for establishing parentage under the law of the state in which the participant was domiciled at the time of death. [62 FR 32429, June 13, 1997, as amended at 74 FR 63063, Dec. 2, 2009; 87 FR 31686, May 24, 2022] § 1651.7 Parent or parents. If the account is to be paid to the participant's parent or parents under § 1651.2(a)(4), the following rules apply: (a) Amount. (b) Step-parent. § 1651.8 Participant's estate. If the account is to be paid to the duly appointed executor or administrator of the participant's estate under § 1651.2(a)(5), the following rules apply: (a) Appointment by court. (b) Appointment by operation of law. [62 FR 32429, June 13, 1997, as amended at 87 FR 31686, May 24, 2022] § 1651.9 Participant's next of kin. If the account is to be paid to the participant's next of kin under § 1651.2(a)(6), the next of kin of the participant will be determined in accordance with the state law of the participant's domicile at the time of death. § 1651.10 Deceased and non-existent beneficiaries. (a) Designated beneficiary dies before participant. (b) Trust designated as beneficiary but not in existence. (c) Non-designated beneficiary dies before participant. (d) Beneficiary dies after participant but before payment. [70 FR 32216, June 1, 2005; as amended at 87 FR 31686, May 24, 2022] § 1651.11 Simultaneous death. If a beneficiary dies at the same time as the participant, the beneficiary will be treated as if he or she predeceased the participant and the account will be paid in accordance with § 1651.10. The same time is considered to be the same hour and minute as indicated on a death certificate. If the participant and beneficiary are killed in the same event, death is presumed to be simultaneous, unless evidence is presented to the contrary. § 1651.12 Homicide. If the participant's death is the result of a homicide, a beneficiary will not be paid as long as the beneficiary is under investigation by local, state or Federal law enforcement authorities as a suspect. If the beneficiary is implicated in the death of the participant and the beneficiary would be precluded from inheriting under state law, the beneficiary will not be entitled to receive any portion of the participant's account. The TSP record keeper will follow the state law of the participant's domicile as that law is set forth in a civil court judgment (that, under the law of the state, would protect the TSP record keeper from double liability or payment) or, in the absence of such a judgment, will apply state law to the facts after all criminal appeals are exhausted. The TSP record keeper will treat the beneficiary as if he or she predeceased the participant and the account will be paid in accordance with § 1651.10. [62 FR 32429, June 13, 1997, as amended at 75 FR 44066, July 28, 2010; 87 FR 31686, May 24, 2022] § 1651.13 How to apply for a death benefit. To apply for a TSP death benefit, a potential beneficiary must contact the ThriftLine for instructions on providing a certified copy of the participant's death certificate, along with any other information as required by the TSP. [87 FR 31686, May 24, 2022] § 1651.14 How payment is made. (a) In general. (b) Spouse beneficiaries. (c) Nonspouse beneficiaries. (1) Payment to minor child or incompetent beneficiary. (2) Payment to executor or administrator. (3) Payment to trust. (4) Payment to inherited IRA on behalf of a nonspouse beneficiary. (5) Undeliverable payments. (6) Proper payments. [87 FR 31686, May 24, 2022] § 1651.15 Claims referred to the Board. (a) Contested claims. (b) Payment deferred. § 1651.16 Missing and unknown beneficiaries. (a) Locate and identify beneficiaries. (2) If a beneficiary is not identified and located, and at least one year has passed since the date of the participant's death, the beneficiary will be treated as having predeceased the participant and the beneficiary's share will be paid in accordance with § 1651.10 (b) Payment to known beneficiaries. (c) Abandoned account. [62 FR 32429, June 13, 1997, as amended at 70 FR 32217, June 1, 2005; 87 FR 31687, May 24, 2022] § 1651.17 Disclaimer of benefits. (a) Right to disclaim. (b) Valid disclaimer. (1) Submitted in writing; (2) Signed or acknowledged, in the presence of a notary, by the person (or legal representative) disclaiming the benefit; and (3) Received before the TSP pays the death benefit. (c) Invalid disclaimer. (1) Is revocable; (2) Directs to whom the disclaimed benefit should be paid; or (3) Specifies which balance (traditional, Roth, or tax-exempt) is to be disclaimed. (d) Disclaimer effect. [68 FR 35510, June 13, 2003, as amended at 75 FR 44066, July 28, 2010; 77 FR 26428, May 4, 2012] § 1651.18 Payment to one bars payment to another. Payment made to a beneficiary(ies) in accordance with this part, based upon information received before payment, bars any claim by any other person. § 1651.19 Beneficiary participant accounts. (a) Initial investment allocation. (b) Contributions. (c) Required minimum distributions. (2) A beneficiary participant may elect to withdraw from his or her account or to begin receiving payments before the required beginning date, but is not required to do so. (3) In the event that a beneficiary participant does not withdraw from his or her beneficiary participant account an amount sufficient to satisfy his or her required minimum distribution for the year, the TSP record keeper will automatically distribute the necessary amount on or before the applicable date described in paragraph (c)(1) of this section. (4) The TSP record keeper will disburse required minimum distributions described in paragraph (c)(3) of this section pro rata from the beneficiary participant's traditional balance and the beneficiary participant's Roth balance. (d) Withdrawal elections. (e) Ineligibility for certain withdrawals. (f) Spousal rights. (g) Rollovers. (h) Periodic statements. (i) Privacy Act. (j) Error correction. (k) Court orders. eligible employer plan or IRA. (l) Death of beneficiary participant. (m) Uniformed services beneficiary participant accounts. (1) Uniformed services beneficiary participant accounts are established and maintained separately from civilian beneficiary participant accounts. Beneficiary participants who have a uniformed services beneficiary participant account and a civilian beneficiary participant account will be issued two separate TSP account numbers. A beneficiary participant must submit separate fund allocation, fund transfer, re and/or TSP withdrawal requests for each account and submit separate beneficiary designations for each account; (2) A uniformed services beneficiary participant account and a civilian beneficiary participant account cannot be combined; (3) If a uniformed services beneficiary participant account contains tax-exempt contributions, any payments or withdrawals from the account will be distributed pro rata from the tax-deferred balance and the tax-exempt balance; (4) A beneficiary participant may roll over all or any portion of an eligible rollover distribution (within the meaning of I.R.C. section 402(c)) from a uniformed services beneficiary participant account into a civilian or uniformed services TSP participant account. However, tax-exempt money attributable to combat zone contributions cannot be rolled over from a uniformed services beneficiary participant account to a civilian TSP participant account. (n) Multiple beneficiary accounts. [75 FR 78879, Dec. 17, 2010, as amended at 77 FR 26428, May 4, 2012; 80 FR 52174, Aug. 28, 2015; 84 FR 46423, Sept. 4, 2019; 87 FR 31687, May 24, 2022]