§8705 Death Claims; Order of Precedence; Escheat

Summary

When a federal worker who has group life or accidental death insurance dies, the money goes to survivors in a set order. First is a person the worker named in a signed, witnessed form that was filed with the employer or with the Office of Personnel Management if the worker was getting an annuity or certain benefits. A will or any form not signed, witnessed, and filed does not count. If no valid named person exists, the order is: spouse; children and their descendants; parents; the executor or administrator of the estate; then other next of kin under the law where the worker lived. If no one files a claim within 1 year, or if payment to the person is barred by law, the insurer can treat that person as if they died first and pay the next in line. If no claim is filed within 2 years and no notice of a claim was given, the Office may pay whoever it thinks is fairly entitled. If no payment is made and no claim is pending after 4 years, the money goes to the Employees’ Life Insurance Fund. Court divorce, annulment, or separation orders or related settlement terms can change who gets paid, but those orders must be filed with the employer or the Office before the worker dies and can only be changed by the person’s written consent or by a new court order. The Office will make rules to apply these points.