---
kind: "range"
citation: "5 U.S.C. §§ 8342–8342"
title: "5"
from: "8342"
to: "8342"
count: 1
release: "119-102"
url: "https://uscodex.org/usc/5/8342..8342"
---

# §8342. Lump-sum benefits; designation of beneficiary; order of precedence

- (a) Subject to [subsection (j)](#j) of this section, an [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) who—
  - (1)
    - (A) is separated from the [service](/usc/5/8331.md?p=12) for at least thirty-one consecutive days; or
    - (B) is transferred to a [position](/usc/5/5531.md?p=2) in which he is not subject to this subchapter, or [chapter 84](/usc/5/chptIII-sptG-ch84.md) of this title, and remains in such a [position](/usc/5/5531.md?p=2) for at least thirty-one consecutive days;
  - (2) files an application with the Office of Personnel Management for payment of the [lump-sum credit](/usc/5/8331.md?p=8);
  - (3) is not reemployed in a [position](/usc/5/5531.md?p=2) in which he is subject to this subchapter, or [chapter 84](/usc/5/chptIII-sptG-ch84.md) of this title, at the time he files the application; and
  - (4) will not become eligible to receive an annuity within thirty-one days after filing the application,

  is entitled to be paid the [lump-sum credit](/usc/5/8331.md?p=8). Except as provided in section [8343a](/usc/5/8343a.md) or [8334(d)(2)](/usc/5/8334.md?p=d-2) of this title, the receipt of the payment of the [lump-sum credit](/usc/5/8331.md?p=8) by the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) voids all annuity rights under this subchapter based on the [service](/usc/5/8331.md?p=12) on which the [lump-sum credit](/usc/5/8331.md?p=8) is based, until the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) is reemployed in the [service](/usc/5/8331.md?p=12) subject to this subchapter. In applying this subsection to an [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) who becomes subject to [chapter 84](/usc/5/chptIII-sptG-ch84.md) (other than by an election under title III of the Federal [Employees](/usc/5/8331.md?p=1)’ Retirement System Act of 1986) and who, while subject to such chapter, files an application with the Office for a payment under this subsection—

  - (i) entitlement to payment of the [lump-sum credit](/usc/5/8331.md?p=8) shall be determined without regard to paragraph [(1)](#a-1) or [(3)](#a-3) if, or to the extent that, such [lump-sum credit](/usc/5/8331.md?p=8) relates to [service](/usc/5/8331.md?p=12) of a type described in [clauses (i) through (iii)](/usc/5/302.md?p=a-1-C-i..a-1-C-iii) of section 302(a)(1)(C) of the Federal [Employees](/usc/5/8331.md?p=1)’ Retirement System Act of 1986; and
  - (ii) if, or to the extent that, the [lump-sum credit](/usc/5/8331.md?p=8) so relates to [service](/usc/5/8331.md?p=12) of a type referred to in [clause (i)](#a-i), it shall (notwithstanding [section 8331(8)](/usc/5/8331.md?p=8)) consist of—
    - (I) the amount by which any unrefunded amount described in section [8331(8)(A)](/usc/5/8331.md?p=8-A) or [(B)](/usc/5/8331.md?p=8-B) relating to such [service](/usc/5/8331.md?p=12), exceeds 1.3 percent of [basic pay](/usc/5/8331.md?p=3) for such [service](/usc/5/8331.md?p=12); and
    - (II) interest on the amount payable under [subclause (I)](#a-ii-I), computed in a manner consistent with applicable provisions of [section 8331(8)](/usc/5/8331.md?p=8).
- (b) Under regulations prescribed by the Office, a present or former [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) may designate a beneficiary or beneficiaries for the purpose of this subchapter.
- (c) Lump-sum benefits authorized by [subsections (d)–(f)](#d..f) of this section shall be paid to the person or persons surviving the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other person:

  First, to the beneficiary or beneficiaries designated by the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) in a signed and witnessed writing received in the Office before his death. For this purpose, a designation, change, or cancellation of beneficiary in a will or other document not so executed and filed has no force or effect.

  Second, if there is no designated beneficiary, to the widow or widower of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2).

  Third, if none of the above, to the child or children of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) and descendants of deceased children by representation.

  Fourth, if none of the above, to the parents of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) or the [survivor](/usc/5/8331.md?p=10) of them.

  Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2).

  Sixth, if none of the above, to such other next of kin of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) as the Office determines to be entitled under the laws of the domicile of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) at the date of his death.

  For the purpose of this subsection, “child” includes a natural child and an adopted child, but does not include a stepchild.

- (d) If an [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) dies—
  - (1) without a [survivor](/usc/5/8331.md?p=10); or
  - (2) with a [survivor](/usc/5/8331.md?p=10) or [survivors](/usc/5/8331.md?p=10) and the right of all [survivors](/usc/5/8331.md?p=10) terminates before a claim for [survivor](/usc/5/8331.md?p=10) annuity is filed;

  or if a former [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) not retired dies, the [lump-sum credit](/usc/5/8331.md?p=8) shall be paid.

- (e) If all annuity rights under this subchapter based on the [service](/usc/5/8331.md?p=12) of a deceased [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) terminate before the total annuity paid equals the [lump-sum credit](/usc/5/8331.md?p=8), the difference shall be paid.
- (f) If an [annuitant](/usc/5/8331.md?p=9) dies, annuity accrued and unpaid shall be paid.
- (g) Annuity accrued and unpaid on the termination, except by death, of the annuity of an [annuitant](/usc/5/8331.md?p=9) or [survivor annuitant](/usc/5/8331.md?p=11) shall be paid to that individual. Annuity accrued and unpaid on the death of a [survivor annuitant](/usc/5/8331.md?p=11) shall be paid in the following order of precedence, and the payment bars recovery by any other person:

  First, to the duly appointed executor or administrator of the estate of the [survivor annuitant](/usc/5/8331.md?p=11).

  Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the [survivor annuitant](/usc/5/8331.md?p=11), to such next of kin of the [survivor annuitant](/usc/5/8331.md?p=11) as the Office determines to be entitled under the laws of the domicile of the [survivor annuitant](/usc/5/8331.md?p=11) at the date of his death.

- (h) Amounts deducted and withheld from the [basic pay](/usc/5/8331.md?p=3) of an [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) from the first day of the first month which begins after he has performed sufficient [service](/usc/5/8331.md?p=12) (excluding [service](/usc/5/8331.md?p=12) which the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) elects to eliminate for the purpose of annuity computation under [section 8339 of this title](/usc/5/8339.md)) to entitle him to the maximum annuity provided by [section 8339 of this title](/usc/5/8339.md), together with interest on the amounts at the rate of 3 percent a year compounded annually from the date of the deductions to the date of retirement or death, shall be applied toward any deposit due under [section 8334 of this title](/usc/5/8334.md), and any balance not so required is deemed a voluntary contribution for the purpose of [section 8343 of this title](/usc/5/8343.md).
- (i) An [employee](/usc/5/8331.md?p=1) who—
  - (1) is separated from the [service](/usc/5/8331.md?p=12) before July 12, 1960; and
  - (2) continues in the [service](/usc/5/8331.md?p=12) after July 12, 1960, without break in [service](/usc/5/8331.md?p=12) of 1 workday or more;

  is entitled to the benefits of [subsection (h)](#h) of this section.

- (j)
  - (1)
    - (A) Payment of the [lump-sum credit](/usc/5/8331.md?p=8) under [subsection (a)](#a) may be made only if the spouse, if any, and any [former spouse](/usc/5/8331.md?p=23) of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) are notified of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2)’s application.
    - (B) The Office shall prescribe regulations under which the [lump-sum credit](/usc/5/8331.md?p=8) shall not be paid without the consent of a spouse or [former spouse](/usc/5/8331.md?p=23) of the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) where the Office has received such additional information and documentation as the Office may require that—
      - (i) a court order bars payment of the [lump-sum credit](/usc/5/8331.md?p=8) in order to preserve the court’s ability to award an annuity under [section 8341(h)](/usc/5/8341.md?p=h) or [section 8345(j)](/usc/5/8345.md?p=j); or
      - (ii) payment of the [lump-sum credit](/usc/5/8331.md?p=8) would extinguish the entitlement of the spouse or [former spouse](/usc/5/8331.md?p=23), under a court order on file with the Office, to a [survivor](/usc/5/8331.md?p=10) annuity under [section 8341(h)](/usc/5/8341.md?p=h) or to any portion of an annuity under [section 8345(j)](/usc/5/8345.md?p=j).
  - (2)
    - (A) Notification of a spouse or [former spouse](/usc/5/8331.md?p=23) under this subsection shall be made in accordance with such requirements as the Office shall by regulation prescribe.
    - (B) Under the regulations, the Office may provide that paragraph (1)(A) of this subsection may be waived with respect to a spouse or [former spouse](/usc/5/8331.md?p=23) if the [employee](/usc/5/8331.md?p=1) or [Member](/usc/5/8331.md?p=2) establishes to the satisfaction of the Office that the whereabouts of such spouse or [former spouse](/usc/5/8331.md?p=23) cannot be determined.
  - (3) The Office shall prescribe regulations under which this subsection shall be applied in any case in which the Office receives two or more such orders or decrees.