Benefits Bits - Thrift Savings Plan and Beneficiary Forms

In Reply Refer To:                                              
Mail Stop 601


                                               
                          MEMORANDUM


                                                 June 21, 2000

                                                  



Supervisors, Managers, and Team Leaders:  Please ensure that employees 
without access to e-mail receive a copy of this message.


To:       All U.S. Geological Survey Employees

From:     Richard C. Williams                (signed)
          Acting Personnel Officer

Subject:  Benefits Bits - Thrift Savings Plan and Beneficiary Forms 

This month we will cover the Thrift Savings Plan (TSP) and designation of 
beneficiary forms. 

Thrift Savings Plan 

In the May 2000 TSP Highlights included in the latest participant 
statements from the TSP, it was noted that the original May 1, 2000, 
startup date for TSP changes would be October 1, 2000. 
These changes included the addition of two new investment funds, daily 
valuation and new withdrawal options.

Due to problems with the new software program, the TSP Board will not be 
able to accommodate these changes by October 1, 2000.  Because of the 
uncertainty of when the software problems will be resolved, the TSP is not 
releasing an effective date for these changes. 

Designation of Beneficiary Forms

There are four benefit areas in which an employee may designate a 
beneficiary.  These include the retirement system, either the Civil 
Service Retirement System (CSRS) or the Federal Employees Retirement 
System (FERS); the TSP; unpaid compensation; and the Federal Employees 
Group Life Insurance (FEGLI).  If there is no beneficiary form on file, 
the Order of Precedence is used as noted below:

   First, to the widow or widower; 
   Second, if none of the above, to the child or children in equal shares;
   Third, if neither of the above, to the parents in equal shares;
   Fourth, if none of the above, to the executor or administrator of the estate; or
   Fifth, if neither of the above, to the next of kin as determined under the 
          laws of the State in which the deceased was domiciled.

If designation of beneficiary forms are on file, it is important to keep 
the forms updated as life events occur, such as marriage or divorce. 
Designation of beneficiary forms that can be filed are listed below:

CSRS (SF-2808)

This form is kept on file with the Office of Personnel Management (OPM). 
If you are unsure whether or not you have filed a form, you should 
complete another SF-2808.  This form can be sent directly to the OPM 
address noted on the form.

FERS (SF-3102)

The designation of beneficiary for FERS is retained in your Official 
Personnel File (OPF).  It should be returned to your servicing personnel 
office for processing and filing. 

TSP (TSP-3)

This form is retained at the TSP Service Office.  If you have filed a 
beneficiary form for your TSP funds, it would be noted at the top of your 
participant statement which you receive from the TSP twice a year.  All 
designation of beneficiary forms should be sent directly to the address 
noted on the back of the TSP-3.

Unpaid Compensation      (SF-1152)

This designation of beneficiary form is filed in your OPF and includes 
annual leave earned but not used and salary due at time of death.  It 
should be filed with your servicing personnel office.
 
FEGLI (SF-2823)

This form is also retained in your OPF.  Since the form has been updated, 
it has caused some confusion.  In most instances, employees will not have 
elected Living Benefits.  Living benefits is money that is payable by 
FEGLI due to a terminal illness and a life expectancy of less than
9 months.  When completing the SF-2823, that block would usually be 
checked "have not".  In addition, most employees have not assigned their 
FEGLI coverage.  The block pertaining to assignment of insurance would 
also be checked "have not."  All SF-2823's should be returned to your 
servicing personnel office.

Before sending any designation of beneficiary form to the appropriate 
office listed above, be sure you have signed and dated the form in the 
presence of two witnesses.  All designation of beneficiary forms are 
available through InForms or your servicing personnel office.