Source: http://ecfr.io/Title-05/pt5.3.1651
Timestamp: 2019-02-19 19:12:24
Document Index: 249856463

Matched Legal Cases: ['art 1651', 'art 1651', '§1651', 'art 1645', '§1651', '§1651', '§1651', '§1651', '§1651', '§1651', 'art 1601', '§1650', '§1650', '§1650', '§1650', '§1650', 'art 1655', '§1650', '§1605', '§1605', '§1651', 'art 1651', '§1651', '§1651']

[5 CFR 1651] Title 5 Part 1651 : Code of Federal Regulations ';
Title 5 Part 1651
§1651.1 Definitions.
(d) Investment of a TSP account upon notice of death. If a participant dies with any portion of his or her TSP account in a TSP Fund other than the G Fund, the TSP will transfer the entire account into the G Fund after it processes a notice that the participant has died, or a death code from the participant's employing agency reporting the participant's death. The account will accrue earnings at the G Fund rate in accordance with 5 CFR part 1645 until it is paid out or a beneficiary participant account is established under this part.
[68 FR 35509, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 80 FR 52174, Aug. 28, 2015]
(b) Eligible beneficiaries. Any individual, firm, corporation, or legal entity, including the U.S. Government, may be designated as a beneficiary. Any number of beneficiaries can be named to share the death benefit. A beneficiary may be designated without the knowledge or consent of that beneficiary or the knowledge or consent of the participant's spouse. A participant may designate a custodian under the Uniform Transfers to Minors Act provided that the custodianship is established under the laws of the District of Columbia and that the participant designates the custodianship using the Agency's designation of custodian form.
[70 FR 32216, June 1, 2005, as amended at 75 FR 44066, July 28, 2010; 77 FR 26427, May 4, 2012; 79 FR 38748, July 9, 2014; 79 FR 44261, July 31, 2014; 82 FR 60105, Dec. 19, 2017]
(a) For purposes of payment under §1651.2(a)(2) and establishment of beneficiary participant accounts under §1651.19, the spouse of the participant is the person to whom the participant was married on the date of death. A person is considered to be married even if the parties are separated, unless a court decree of divorce or annulment has been entered. The laws of the jurisdiction in which the marriage was initially established will be used to determine whether the participant was married on the date of death.
If the participant's death is the result of a homicide, a beneficiary will not be paid as long as the beneficiary is under investigation by local, state or Federal law enforcement authorities as a suspect. If the beneficiary is implicated in the death of the participant and the beneficiary would be precluded from inheriting under state law, the beneficiary will not be entitled to receive any portion of the participant's account. The Board will follow the state law of the participant's domicile as that law is set forth in a civil court judgment (that, under the law of the state, would protect the Board from double liability or payment) or, in the absence of such a judgment, will apply state law to the facts after all criminal appeals are exhausted. The Board will treat the beneficiary as if he or she predeceased the participant and the account will be paid in accordance with §1651.10.
The TSP has created a paper form that a potential beneficiary must use to apply for a TSP death benefit. The TSP must receive this form before a death benefit can be paid. Any individual can file this form with the TSP record keeper. The individual submitting the form must attach to the form a certified copy of the participant' death certificate. The TSP record keeper's acceptance of this form does not entitle the applicant to benefits. Please visit http://www.tsp.gov to obtain a copy of this form and for the current mailing address for death benefit applications.
(b) Spouse beneficiaries. The TSP will automatically transfer a surviving spouse's death benefit to a beneficiary participant account (described in §1651.19) established in the spouse's name. The TSP will not maintain a beneficiary participant account if the balance of the beneficiary participant account is less than $200 on the date the account is established. The Agency also will not transfer this amount or pay it by electronic funds transfer. Instead the spouse will receive an immediate distribution in the form of a check.
(1) Payment to minor child or incompetent beneficiary. Payment will be made in the name of a minor child or incompetent beneficiary. A parent or other guardian may direct where the payment should be sent and may make any permitted tax withholding election. A guardian of a minor child or incompetent beneficiary must submit court documen tation showing his or her appointment as guardian.
(2) Payment to executor or administrator. If payment is to the executor or administrator of an estate, the check will be made payable to the estate of the deceased participant, not to the executor or administrator. A TIN must be provided for all estates.
(3) Payment to trust. If payment is to a trust, the payment will be made payable to the trust and mailed in care of the trustee. A TIN must be provided for the trust.
(d) Disclaimer effect. The disclaimed share will be paid as though the beneficiary predeceased the participant, according to the rules set forth in §1651.10. Any part of the death benefit which is not disclaimed will be paid to the disclaimant pursuant to §1651.14.
(a) Initial investment allocation. Regardless of the allocation of the deceased participant's account balance at the time of his or her death, each beneficiary participant account, once established, will be allocated 100 percent to the age-appropriate TSP Lifecycle Fund based on the beneficiary participant's date of birth. A beneficiary participant may redistribute his or her beneficiary participant account balance among the TSP investment funds by making an interfund transfer request described in part 1601, subpart C of this chapter.
(ii) The end of the calendar year in which the participant would have attained age 701⁄2 .
(d) Withdrawal elections. A beneficiary participant may elect any withdrawal option is available to separated participants. The provisions of §1650.12, §1650.13, and §1650.14 shall apply as if all references to a participant are references to a beneficiary participant and all references to an account balance are references to a beneficiary participant account balance.
(e) Ineligibility for certain withdrawals. A beneficiary participant is ineligible to request the following types of withdrawals from his or her beneficiary participant account: Age-based withdrawals described in §1650.31 of this chapter, financial hardship withdrawals described in §1650.32 of this chapter, or loans described in part 1655 of this chapter. A beneficiary participant will not be ineligible for a partial withdrawal because the deceased participant previously elected an age-based withdrawal.
(f) Spousal rights. The spousal rights described in 5 U.S.C. 8351, 5 U.S.C. 8435, and §1650.61 of this chapter do not apply to beneficiary participant accounts.
(j) Error correction. If, because of an error committed by the Board or the TSP record keeper, a beneficiary participant's account is not credited or charged with the investment gains or losses the account would have received had the error not occurred, the account will be credited subject to and in accordance with the rules and procedures set forth in §1605.21. A beneficiary participant may submit a claim for correction of Board or TSP record keeper error pursuant to the procedures described in §1605.22.
(l) Death of beneficiary participant. To the extent it is not inconsistent with this §1651.19, a beneficiary participant account shall be disbursed upon the death of the beneficiary participant in accordance with part 1651 as if any reference to a participant is a reference to a beneficiary participant. For example, a beneficiary participant may designate a beneficiary for his or her beneficiary participant account in accordance with §1651.3 and §1651.4 of this chapter. No individual who is entitled to a death benefit from a beneficiary participant account shall be eligible to keep the death benefit in the TSP or request that the TSP transfer all or a portion of the death benefit to an IRA or eligible employer plan.