5 C.F.R. Subpart B—One-time Payments
Title 5 - Administrative Personnel
This subpart explains the requirements under FERS— (a) For payment of employee contributions to the Civil Service Retirement Fund— (1) As a refund of contribution, to separated employees; or (2) As a death benefit, to survivors of employees, separated employees, and retirees; and (b) For payment of any accrued, but unpaid, annuity to survivors of retirees. (a) Except as provided in §§843.208 and 843.209 or in section 3716 of title 31, United States Code, on administrative offset for Government claims, a separated employee who has been separated from a covered position for at least 31 days and who is ineligible for an annuity commencing within 31 days after the date of filing an application for refund is eligible for a payment of the unexpended balance. (b) Periods of service for which employee contributions have been refunded are not creditable service in determining whether the employee has sufficient service to have title to an annuity or for any other purpose. (a) If there is no survivor who is entitled to monthly survivor annuity benefits on the death of an employee, separated employee, retiree, or survivor annuitant, the unexpended balance is payable, except as provided in section 3716 of title 31, United States Code, on administrative offset for Government claims, to the person(s) entitled in the normal order of precedence described in section 8424 of title 5, United States Code. (b) If a deceased employee, separated employee, retiree or Member provided in a valid designation of beneficiary that the lump sum proceeds shall be payable to the deceased's estate, or to the Executor, Administrator, or other representative of the deceased's estate, or if the proceeds would otherwise be properly payable to the duly appointed representative of the deceased's estate under the order of precedence specified in 5 U.S.C. 8424(d), payment of the proceeds to the duly appointed representative of the deceased's estate will bar recovery by any other person. [52 FR 2074, Jan. 16, 1987, as amended at 57 FR 29784, July 7, 1992] (a) Except as provided in section 3716 of title 31, United States Code, on administrative offset for Government claims, even if an annuity is payable, the person entitled in the order of precedence described in section 8424 of title 5, United States Code, may be paid— (1) Partial deposits for civilian service performed on and after October 1, 1982; and (2) Partial deposits for post-1956 military service; and (3) The accrued benefit. (b) Except as provided in subpart G of part 842 of this chapter or §843.311, when someone is eligible for an annuity, the person entitled in the order of precedence may not be paid— (1) Partial or completed deposits for nondeduction civilian service performed before October 1, 1982, unless the service covered by the deposit is not creditable under FERS; or (2) Completed deposits for nondeduction civilian service performed on and after October 1, 1982, unless the service covered by the deposit is not creditable under or FERS; or (3) Completed deposits for post-1956 military service, unless the service covered by the deposit is not creditable under FERS. (c) Payments of the partial or completed deposits mentioned in paragraph (b) of this section are subject to section 3716 of title 31, United States Code (administrative offset for Governmental claims). (a) A designation of beneficiary must be in writing, signed and witnessed, and received in the employing office (or in OPM, in the case of a retiree, or a compensationer, or a separated employee) before the death of the designator. (b) A change or cancellation of beneficiary in a last will or testament, or in any other document not witnessed and filed as required by this section, will not have any force or effect. (c) A witness to a designation of beneficiary is ineligible to receive payment as a beneficiary. (d) Any person, firm, corporation, or legal entity may be named as beneficiary. (e) A change of beneficiary may be made at any time and without the knowledge or consent of the previous beneficiary. This right cannot be waived or restricted. (f) A designation of beneficiary is automatically cancelled whenever a separated employee is paid the unexpended balance. (g)(1) If the shares designated equal less than 100 percent, the undesignated portion will be paid according to the order of precedence provided in section 8424 of title 5, United States Code. (2) If the shares designated exceed 100 percent, each designee's share will be in proportion to the share originally designated. Each share is computed by multiplying the percentage designated for that designee by a fraction whose numerator is 100 and whose denominator is the total number of percent designated. (a) Upon receipt of a designation of beneficiary, the agency (or OPM) will mark the designation to show the date of receipt. (b) The date of receipt of designation of beneficiary is presumed to be the date marked by the agency (or OPM). When a deceased employee or retiree has not named a beneficiary and one of the next of kin entitled makes a claim for the accrued benefit, other next of kin entitled to share in the unexpended balance or accrued benefit may designate the one who made the claim to act as their agent to receive their distributive shares. (a) Payment to an employee of the unexpended balance may be made only if current and former spouses are notified of the former employee's application. (b) Proof of notification will consist of a signed and witnessed statement by the current and/or former spouse on a form provided by OPM acknowledging that he or she has been informed of the former employee's application for the unexpended balance and the consequences of the refund on the current or former spouse's possible annuity entitlement. This statement must be presented to the employing agency or OPM when filing the application for the unexpended balance. (c) If the current and/or former spouse refuses to acknowledge the notification or the employee is otherwise unable to obtain the acknowledgment, the employee must submit— (1) Affidavits signed by two individuals who witnessed the employee's attempt to personally notify the current or former spouse. The witnesses must attest that they were in the presence of the employee and the current or former spouse and that the employee's purpose should have been clear to the current or former spouse; or (2) The current mailing address of the current or former spouse. OPM will attempt to notify (by certified mail—return receipt requested) the current or former spouse at the address provided by the employee. The unexpended balance will not be paid until OPM receives the signed return receipt. The current and/or former spouse notification requirement will be waived upon a showing that the current and/or former spouse's whereabouts cannot be determined. A request for waiver on this basis must be accompanied by— (a) A judicial or administrative determination that the current and/or former spouse's whereabouts cannot be determined; or (b) Affidavits by the former employee and two other persons, at least one of whom is not related to the former employee, attesting to the inability to locate the current and/or former spouse and stating the efforts made to locate the current and/or former spouse. Transfers of employees' contributions between the Civil Service Retirement Fund and other retirement systems for Federal or District of Columbia employees when made in accordance with Federal statute for the purpose of transferring retirement service credit to the other retirement system are not subject to the notice requirements of this subpart. Someone entitled to an annuity for purposes of §§843.203 and 843.204 includes a child, even if the amount of the child's annuity is zero because the amount of the social security child survivor benefits exceeds the child survivor benefits payable under CSRS, unless— (a) The child's annuity entitlement has terminated under §843.408(b); or (b) The child is— (1) A disabled child under §843.407, (2) At least age 23, and (3) Entitled to social security child survivor benefits in an amount that equals or exceeds the amount of the child survivor benefits payable under CSRS. [52 FR 23014, June 17, 1987] A lump-sum payment will include employee contributions and interest as provided under subpart G of part 847 of this chapter. [61 FR 41721, Aug. 9, 1996]
Title 5: Administrative Personnel
PART 843—FEDERAL EMPLOYEES RETIREMENT SYSTEM—DEATH BENEFITS AND EMPLOYEE REFUNDS
Subpart B—One-time Payments
§ 843.201 Purpose.
§ 843.202 Eligibility for payment of the unexpended balance to a separated employee.
§ 843.203 Eligibility for a one-time payment upon death of an employee, separated employee, or retiree if no one is eligible for an annuity.
§ 843.204 Eligibility for a one-time payment upon death of an employee, separated employee, or retiree if someone is eligible for an annuity.
§ 843.205 Designation of beneficiary—form and execution.
§ 843.206 Designation of beneficiary—proof of receipt.
§ 843.207 Agent of next of kin.
§ 843.208 Notification of current and/or former spouse before payment of unexpended balance to a separated employee.
§ 843.209 Waiver of notification requirement.
§ 843.210 Transfers between retirement systems.
§ 843.211 Determining when children prevent payment of the unexpended balance.
§ 843.212 Lump-sum payments which include contributions made to a retirement system for employees of a nonappropriated fund instrumentality.
