---
kind: "section"
citation: "5 U.S.C. § 8424"
title: "5"
title_heading: "Government Organization and Employees"
number: "8424"
heading: "Lump-sum benefits; designation of beneficiary; order of precedence"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8424"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 84 — Federal Employees’ Retirement System"
  - "Subchapter II — Basic Annuity"
---

# §8424. Lump-sum benefits; designation of beneficiary; order of precedence

- (a) Subject to [subsection (b)](#b), an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) who—
  - (1)
    - (A) is separated from the [service](/usc/5/8401.md?p=26) for at least 31 consecutive days; or
    - (B) is transferred to a [position](/usc/5/5102.md?p=a-3) in which the individual is not subject to this chapter and remains in such a [position](/usc/5/5102.md?p=a-3) for at least 31 consecutive days;
  - (2) files an application with the [Office](/usc/5/5402.md?p=3) for payment of the [lump-sum credit](/usc/5/8401.md?p=19);
  - (3) is not reemployed in a [position](/usc/5/5102.md?p=a-3) in which the individual is subject to this chapter at the time of filing the application; and
  - (4) will not become [eligible](/usc/5/4701.md?p=a-3) to receive an annuity within 31 days after filing the application;

  is entitled to be paid the [lump-sum credit](/usc/5/8401.md?p=19). Except as provided in [section 8420a](/usc/5/8420a.md), payment of the [lump-sum credit](/usc/5/8401.md?p=19) to an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) voids all annuity rights under this subchapter, and subchapters IV and V of this chapter, based on the [service](/usc/5/8401.md?p=26) on which the [lump-sum credit](/usc/5/8401.md?p=19) is based, until the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) is reemployed in the [service](/usc/5/8401.md?p=26) subject to this chapter.

- (b)
  - (1)
    - (A) Payment of the [lump-sum credit](/usc/5/8401.md?p=19) under [subsection (a)](#a) may be made only if the spouse, if any, and any [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) are notified of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20)’s application.
    - (B) The [Office](/usc/5/5402.md?p=3) shall prescribe regulations under which the [lump-sum credit](/usc/5/8401.md?p=19) shall not be paid without the consent of a spouse or [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) where the [Office](/usc/5/5402.md?p=3) has received such additional information or documentation as the [Office](/usc/5/5402.md?p=3) may require that—
      - (i) a [court](/usc/5/8401.md?p=7) order bars payment of the [lump-sum credit](/usc/5/8401.md?p=19) in order to preserve the [court](/usc/5/8401.md?p=7)’s ability to award an annuity under section [8445](/usc/5/8445.md) or [8467](/usc/5/8467.md); or
      - (ii) payment of the [lump-sum credit](/usc/5/8401.md?p=19) would extinguish the entitlement of the spouse or [former spouse](/usc/5/8401.md?p=12), under a [court](/usc/5/8401.md?p=7) order on file with the [Office](/usc/5/5402.md?p=3), to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md) or to any portion of an annuity under section 8467.
  - (2)
    - (A) Notification of a spouse or [former spouse](/usc/5/8401.md?p=12) under this subsection shall be made in accordance with such requirements as the [Office](/usc/5/5402.md?p=3) shall by regulation prescribe.
    - (B) Under the regulations, the [Office](/usc/5/5402.md?p=3) may provide that [paragraph (1)(A)](#b-1-A) may be waived with respect to a spouse or [former spouse](/usc/5/8401.md?p=12) if the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) establishes to the satisfaction of the [Office](/usc/5/5402.md?p=3) that the whereabouts of such spouse or [former spouse](/usc/5/8401.md?p=12) cannot be determined.
  - (3) The [Office](/usc/5/5402.md?p=3) shall prescribe regulations under which this subsection shall be applied in any case in which the [Office](/usc/5/5402.md?p=3) receives two or more orders or decrees referred to in [paragraph (1)(B)(i)](#b-1-B-i).
- (c) Under regulations prescribed by the [Office](/usc/5/5402.md?p=3), an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20), or a former [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20), may designate one or more beneficiaries under this section.
- (d) Lump-sum benefits authorized by subsections [(e)](#e) through [(g)](#g) shall be paid to the individual or individuals surviving the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other individual:

  First, to the beneficiary or beneficiaries designated by the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) in a signed and witnessed writing received in the [Office](/usc/5/5402.md?p=3) before the death of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20). 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/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20).

  Third, if none of the above, to the child or children of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) and descendants of deceased children by representation.

  Fourth, if none of the above, to the parents of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) or the [survivor](/usc/5/8401.md?p=28) of them.

  Fifth, if none of the above, to the duly appointed executor or [administrator](/usc/5/9801.md?p=2) of the estate of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20).

  Sixth, if none of the above, to such other next of kin of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) as the [Office](/usc/5/5402.md?p=3) determines to be entitled under the laws of the domicile of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) at the date of death of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20).

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

- (e) If an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20), or former [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20), dies—
  - (1) without a [survivor](/usc/5/8401.md?p=28), or
  - (2) with a [survivor](/usc/5/8401.md?p=28) or [survivors](/usc/5/8401.md?p=28) and the right of all [survivors](/usc/5/8401.md?p=28) under subchapter IV terminates before a claim for [survivor](/usc/5/8401.md?p=28) annuity under such subchapter is filed,

  the [lump-sum credit](/usc/5/8401.md?p=19) shall be paid.

- (f) If all annuity rights under this chapter (other than under subchapter III of this chapter) based on the [service](/usc/5/8401.md?p=26) of a deceased [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) terminate before the total annuity paid equals the [lump-sum credit](/usc/5/8401.md?p=19), the difference shall be paid.
- (g) If an [annuitant](/usc/5/8401.md?p=2) dies, annuity accrued and unpaid shall be paid.
- (h) Annuity accrued and unpaid on the termination, except by death, of the annuity of an [annuitant](/usc/5/8401.md?p=2) or [survivor](/usc/5/8401.md?p=28) shall be paid to that individual. Annuity accrued and unpaid on the death of a [survivor](/usc/5/8401.md?p=28) shall be paid in the following order of precedence, and the payment bars recovery by any other [person](/usc/5/7103.md?p=a-1):

  First, to the duly appointed executor or [administrator](/usc/5/9801.md?p=2) of the estate of the [survivor](/usc/5/8401.md?p=28).

  Second, if there is no executor or [administrator](/usc/5/9801.md?p=2), payment may be made, after 30 days from the date of death of the [survivor](/usc/5/8401.md?p=28), to such next of kin of the [survivor](/usc/5/8401.md?p=28) as the [Office](/usc/5/5402.md?p=3) determines to be entitled under the laws of the domicile of the [survivor](/usc/5/8401.md?p=28) at the date of death.


## Source credit

(Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 539; amended Pub. L. 106–361, § 3(b), Oct. 27, 2000, 114 Stat. 1402; Pub. L. 111–84, div. A, title XIX, § 1904(b)(4), Oct. 28, 2009, 123 Stat. 2617.)

## Notes

### Editorial Notes

### Amendments

2009—Subsec. (a). Pub. L. 111–84 substituted “based, until the employee or Member is reemployed in the service subject to this chapter.” for “based.” in concluding provisions.

2000—Subsec. (b)(1). Pub. L. 106–361 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Payment of the lump-sum credit under subsection (a)—

“(A) may be made only if any current spouse and any former spouse of the employee or Member are notified of the application by the employee or Member; and

“(B) in any case in which there is a former spouse, shall be subject to the terms of a court decree of divorce, annulment, or legal separation issued with respect to such former spouse if—

“(i) the decree expressly relates to any portion of the lump-sum credit involved; and

“(ii) payment of the lump-sum credit would affect any right or interest of the former spouse with respect to a survivor annuity under section 8445, or to any portion of an annuity under section 8467.”