Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

United States

Office of Personnel Management

Retirement and Insurance Service

Benefits Administration Letter

Number: 98-205 Date: September 17, 1998 

Subject: Federal Employees’ Group Life Insurance: Court Orders

Purpose The purpose of this letter is to inform you of a change in the

way benefits are paid under the Federal Employees’ Group

Life Insurance (FEGLI) Program.

This change is the result of a new law, Public Law 

105-205, which was enacted July 22, 1998.

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Background The FEGLI law sets an order of precedence for payment of

benefits following the death of an insured employee,

annuitant, or compensationer (5 U.S.C. § 8705). First in

the order of precedence is a designated beneficiary. Until

now, there has been no statutory limitation on changing

designations.

When a court order required an individual insured under the

FEGLI Program to name his/her children or former spouse

as the beneficiary, the individual may not have complied or

may have complied and then changed the designation at a

later date. This action, while seemingly in violation of the

court order, did not violate the FEGLI law.

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What the New Law Does Pub. L. 105-205 requires benefits to be paid in accordance

with the terms of a court decree of divorce, annulment, or

legal separation, or the terms of a court order or courtapproved property settlement agreement relating to such a

court decree, regardless of whether the insured individual

actually completes a designation complying with the court

order.
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The court order supersedes any prior designation of

beneficiary made by the insured individual. If such a court

order is in effect, the insured individual cannot change

his/her designation, unless the person(s) named in the court

order agrees in writing or unless the court order is

subsequently modified.

Pub. L. 105-205 also allows a court order to direct the

insured individual to make an irrevocable assignment to the

person(s) named in the court order. However, until the

insured properly completes an assignment form, the

assignment does not occur.

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Where Will These Court For active employees, the court order must go to their

Orders Be Kept? employing agency.

For annuitants, the court order must go to OPM.

For compensationers, during the first 12 months of nonpay

status the court order must go to their employing agency. 

After separation or the completion of 12 months in nonpay

status, the court order must go to OPM.

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Does the Court Order Have To avoid the possibility of fraud, the court order

to Be Certified? submitted must be a certified copy.

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Who Has to Bring in or The court order can be submitted by the insured

Send in the Court Order? individual, by the ex-spouse, by the ex-spouse’s attorney, by

whomever - it doesn’t matter who submits the court order.

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When Does the Court Order The court order must be received by the appropriate

Have to Be Received? office, as named above, on or after July 22, 1998, and

before the insured individual’s death.

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What about Court Orders Court orders that were sent in prior to the enactment of

That Were Already Sent in Pub. L. 105-205 don’t “count” for this purpose. To be

for Some Other Reason? valid, a court order must be received no earlier than 

July 22, 1998.

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What Do Agencies Have to Court orders must be filed in the employee’s Official

Do with the Court Orders? Personnel Folder (OPF). It is critical that agency personnel

clearly stamp the court orders with the receipt date.

The OPF must be flagged in some way to indicate that it

contains a court order.

When an employee dies, any court order in his/her OPF

must be sent to the Office of Federal Employees’ Group

Life Insurance (OFEGLI), along with other life insurance

forms.

When an employee retires and is eligible to continue FEGLI

as an annuitant, any court order in his/her OPF must be sent

to OPM with the retirement application and other life

insurance forms.

When a compensationer separates or completes 12 months

in nonpay status and is eligible to continue FEGLI as a

compensationer, any court order in his/her OPF must be

sent to OPM along with other life insurance forms.

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Do Agencies Have to Review No, agencies do not have to review the court orders or

the Court Orders in Any Way make any determination regarding their validity.

to Determine Their Validity?

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What If We Get More Than If you get more than one court order for the same

One Court Order for the employee, just stamp a receipt date on it and file it in the

Same Employee? OPF, along with the others.

When sending court orders to OFEGLI or OPM, always

check to see if there is more than one in the OPF, and be

sure to send them all.

At the time of the individual’s death, OFEGLI will

determine which court order, if any, is valid for payment of

benefits.
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What Should We Do If an When an employee with a court order on file submits a 

Employee Submits a designation of beneficiary, review it as you would any 

Designation of Beneficiary other designation to determine if it has been properly 

after We’ve Received a completed, certify its receipt, and file it in the employee’s 

Court Order? OPF. After the individual’s death, OFEGLI will determine

whether the court order is still in effect or whether benefits

should be paid according to the designation.

However, you should notify the employee that there is a

court order on file and that the designation may not be

valid.

______________________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division