Beneficiary designations on TSP and FERS
A beneficiary designation is the form that names who receives a federal benefit when you die. You file one for the Thrift Savings Plan (TSP) and others for your FERS benefits. It overrides your will. File none, and federal law pays a fixed order of relatives instead.
9 min read · By RetireCiv Editorial · Updated June 19, 2026
Who inherits your federal benefits?
A beneficiary designation is a short form that names who receives a federal benefit if you die. You file one for your TSP, and separate ones for your FERS benefits. Each form is binding, free, and takes only minutes.
Here is the part that surprises people. A designation on file overrides your will. The named person is paid first, no matter what your will says. For these accounts, your will does not control anything.
If you never file a form, your money is not lost. Federal law pays a fixed order of relatives instead, starting with your spouse. That default order is the safety net, and for many people it already matches their wishes.
So a beneficiary form is the cheapest estate-planning tool you own. The real risk is not forgetting to file one. The risk is that an old form goes stale and pays the wrong person. The rest of this lesson shows how to keep that from happening.
Who is paid first
- 1
Your named beneficiary
You name thisthe form you put on file
- If no form is on file2
Your spouse
widow or widower
- 3
Your children
equally, then a child’s descendants
- 4
Your parents
equally, or the surviving parent
- 5
Your estate’s executor
court-appointed administrator
- 6
Your next of kin
under your state’s law
A designation on file overrides your will. For these accounts, your will does not control anything.
Does a beneficiary designation override a will?
Yes. For your TSP, FERS, and life insurance, the beneficiary form controls who is paid, and it overrides your will. The named beneficiary is first in line. A will only controls assets that have no beneficiary form, so it cannot redirect these federal benefits.
What happens to my TSP and FERS if I die without a beneficiary form?
Your money still gets paid, just by a fixed legal order instead of your choice. Payment goes to your spouse first; if none, to your children and the descendants of any who died; if none, to your parents; then to your estate’s executor; then to your next of kin under state law.
Do I have to file a beneficiary form?
No. If the statutory order of precedence already sends your benefits where you want, you do not need a form. File one when your wishes differ from that default, for example to split shares unevenly, name a non-relative, or name a trust. When in doubt, filing is quick and removes any guesswork.
Four benefits, four separate forms
Your federal benefits are not covered by a single form. Each benefit has its own designation, and naming someone on one form does not name them on the others. Most federal employees have four to keep straight.
Your TSP uses its own designation, filed in your TSP account. Your FERS benefit uses the Designation of Beneficiary, SF-3102, which covers your unpaid retirement contributions and the lump-sum death benefit. (Employees still under the older CSRS system use SF-2808 instead.)
Your life insurance has its own form too. Federal Employees Group Life Insurance, or FEGLI, uses SF-2823. Your final pay, meaning your last paycheck and any unused annual leave, uses SF-1152.
The key habit is to treat them as a set. When you update one after a life change, update all four. A new spouse named on your FEGLI form is not named on your TSP unless you do that separately.
The four federal beneficiary forms
| Benefit | Form | What it pays |
|---|---|---|
| TSP | In your TSP account | Your Thrift Savings Plan balance |
| FERS | SF-3102 | Unpaid contributions and the lump-sum death benefit |
| FEGLI life insurance | SF-2823 | Your federal group life insurance |
| Final pay | SF-1152 | Last paycheck and unused annual leave |
Which form do I use for my TSP beneficiary?
The TSP honors only its own designation, which you file in your TSP account. No other federal form, and no will, controls who receives your TSP balance. If the TSP has no valid designation on file, it pays your account by the statutory order of precedence.
What does the SF-3102 cover?
The SF-3102 names who receives your FERS lump-sum death benefit and any retirement contributions that have not been paid out. It does not change who qualifies for a monthly survivor annuity, which follows its own rules. Employees under CSRS use SF-2808 for the same purpose.
Does one beneficiary form cover all my benefits?
No. There are four separate designations: your TSP, your FERS benefit (SF-3102), your FEGLI life insurance (SF-2823), and your final pay (SF-1152). Each is filed and stored separately. Updating one has no effect on the others, so a complete update means touching all four.
Why your will does not control these accounts
These federal benefits pass outside your will. They go straight to the named beneficiary, skipping the probate process that distributes the rest of your estate. That is why the form, not the will, has the final say.
You have real flexibility on the form. You can name one person, split the benefit among several with set shares, or name a trust to receive it. The choice is yours, and you can change it anytime.
Compare that with the rest of your estate. Your bank accounts, your home, and your personal belongings are distributed by your will or by state law. Those assets and your federal benefits run on two different tracks.
This split is why a will alone is not an estate plan for a federal employee. A carefully written will can be quietly undone by a beneficiary form you filed years ago and forgot.
What controls who inherits
| What you own | What controls who inherits it |
|---|---|
| TSP, FERS, FEGLI, final pay | The beneficiary form on file (overrides your will) |
| Bank, brokerage, home, belongings | Your will, or your state’s law |
Can I name more than one beneficiary?
Yes. You can split any of these benefits among several beneficiaries and set each person’s share. You can also name a person first and a backup if that person dies before you. Spreading shares is common when a federal employee wants to provide for more than one child or relative.
Can I name a trust as my beneficiary?
Yes. Federal rules let you name a trust to receive your TSP, FERS, or FEGLI benefit. This is useful when you want the money managed for a minor child or a relative with special needs. The form asks for details that identify the trust, so have those ready.
If my will and my beneficiary form disagree, which one wins?
The beneficiary form wins for these federal benefits, every time. The will controls only assets without a beneficiary designation. Updating your will does not update your federal forms, so the two documents need to be reviewed together to make sure they agree.
The divorce trap: a stale form pays the wrong person
A federal beneficiary designation is not automatically canceled by divorce. The form stays exactly as you left it. If your ex-spouse is still named, your ex-spouse is who gets paid.
This catches people every year. The TSP and FEGLI pay the person on the form even if that person gave up all rights to the benefit in the divorce. The plan follows the form, not the divorce decree, unless an eligible court order is also on file.
A court order can sometimes redirect a benefit, but it is not automatic and you should never count on it. The reliable fix is in your hands: file a new designation that names who you actually want.
The broader lesson is to review your forms after any major life change. The benefit does not know your circumstances changed. Only a new form tells it.
When to review your designations
| Life event | Why it changes who should inherit |
|---|---|
| Divorce | Your ex-spouse stays named until you change the form |
| Marriage | A new spouse to provide for |
| New child | A new person to include or add as a backup |
| A death in the family | A named beneficiary who can no longer receive it |
Divorce does not remove your ex-spouse from the form. Only you can do that.
Does divorce automatically remove my ex-spouse as my beneficiary?
No. Federal benefits do not revoke a designation when you divorce. Your TSP and FEGLI will pay your ex-spouse if that is who the form still names, even years later. To change it, you must file a new designation yourself. This is the single most common beneficiary mistake feds make.
What if my divorce decree says my ex gave up the benefit?
The plan still pays the person named on the form unless an eligible court order is filed with the right office. A decree sitting in a drawer does not redirect a federal benefit. The safe move is to file a fresh designation, so the form itself reflects your wishes and no one has to interpret a court order.
When should I review my beneficiary forms?
Review them after any marriage, divorce, birth, or death in the family, and at least every few years even when nothing has changed. A quick check takes minutes. It is the cheapest insurance against your benefits going to someone you no longer intend.
How to update each designation
Updating your designations is quick, and each one has a clear home. You can usually handle all four in a single afternoon, and you never need a lawyer to do it.
Start with the TSP, which you update directly in your TSP account. For your FERS benefit, file the SF-3102. For life insurance, file the FEGLI form, SF-2823. For your final pay, file SF-1152.
While you are still working, the FERS, FEGLI, and final-pay forms go to your agency HR or payroll office. Once you retire, your FERS designation is filed with OPM instead. The TSP is always handled through the TSP, working or retired.
Keep a copy of every form you file, and note the date. If you are ever unsure what is currently on file, the fastest answer is to file a fresh designation, which replaces whatever came before.
How do I update my TSP beneficiary?
You name or change TSP beneficiaries directly in your TSP account. The TSP recognizes only its own designation, so this is the one place that controls your account. A change you make there replaces any earlier TSP designation in full.
Where do I send the FERS and FEGLI forms?
While you are working, send the SF-3102 (FERS) and SF-2823 (FEGLI) to your agency HR office. After you retire, your FERS designation is filed with OPM. Keep a stamped or dated copy for your records, so you can confirm what is on file later.
How do I find out what beneficiaries I have on file now?
Check your TSP account for the TSP, and ask your HR office for the federal forms. Many employees find they never filed anything, which means the statutory order of precedence applies. If you cannot confirm a form, filing a new one is the simplest way to be certain.
Put a beneficiary review on your calendar
A beneficiary review is one of the highest-value, lowest-effort tasks in your whole financial life. It costs minutes and protects everything your family would inherit from your federal service.
Treat it as a recurring habit, not a one-time chore. Set a reminder to check all four designations together every few years, and again right after any marriage, divorce, birth, or death.
New federal employees are in the best possible spot to start. File your designations early in your career, and a quick review keeps them current for decades with almost no work.
A complete retirement plan covers more than beneficiaries. To see how your pension, TSP, and savings line up against your target, run your free readiness score. It turns the rest of your plan into clear numbers, the same way this lesson turned your beneficiary forms into a clear checklist.
How often should I check my beneficiary designations?
Check all four every few years, and immediately after any major life event. There is no penalty for reviewing too often, and the cost of reviewing too rarely is that a benefit pays the wrong person. A short recurring reminder is enough to keep every form current.
What is the simplest way to stay on top of this?
Review all four designations at once, on the same day, so none gets missed. Pair the review with another yearly task, such as open season or your birthday, so it has a natural trigger. Keeping the forms together in one folder makes the next check even faster.