Make sure that, in the event of your death, your TSP account will be distributed according to your wishes.
- How the TSP Distributes Death Benefits
- Who Can You Designate as a Beneficiary?
- How to Designate a Beneficiary
Distribution According to the TSP Designation of Beneficiary
Did you know that when you die, the TSP will not honor a will when distributing your account? Neither will it honor a prenuptial agreement, a separation agreement, a property settlement agreement, a court order, or a trust document.
The only document the TSP will use to distribute death benefits is Form TSP-3, Designation of Beneficiary (formerly TSP-U-3 for uniformed services members). By law, the TSP must pay your properly designated beneficiary, or beneficiaries, under all circumstances.
Distribution According to the Statutory Order of Precedence
If you do not have a Designation of Beneficiary form on file with the TSP, your money will be distributed according to the following order of precedence required by law:
- To your spouse;
- If none, to your child or children equally, and to the descendants of deceased children;
- If none, to your parents equally or your surviving parent;
- If none, to your appointed executor or administrator of your estate;
- If none, to your next of kin who is entitled to your estate under the laws of the state in which you resided at the time of your death.
You can designate one or more persons, a corporation, trust, legal entity, or your estate to receive your TSP account in the event of your death. You will have to indicate the share of your account that you would like each beneficiary to receive.
You can also designate contingent beneficiaries. These are persons or entities that would receive the primary beneficiary's share of your account if that primary beneficiary were to die before you.
If you don't designate any contingent beneficiaries, the share of any primary beneficiary who dies before you will be distributed proportionally among all of the surviving primary beneficiaries that you named. If no other primary beneficiaries remain, your death benefit will be paid according to the statutory order of precedence.
To designate a beneficiary, or beneficiaries, for your TSP account, follow these steps:
- Complete Form TSP-3, Designation of Beneficiary. You can also contact the ThriftLine or ask your agency or service for a copy of the form.
- Sign and witness each page of Form TSP-3 according to the directions.
- Return the completed form to the address indicated on the form or fax it to the number provided. You must send the form directly to the TSP. Do not submit Form TSP-3 to your agency or service. Be aware that your beneficiary designation will not be valid unless it is received by the TSP on or before the date of your death.
- You will receive a confirmation letter in the mail after the TSP receives your form and processes it. You will also receive a letter from the TSP if there are errors on your form that prevent it from being accepted.