OPM issues new life insurance rule for divorcees

Divorced feds who participate in the Federal Employees' Group Life Insurance (FEGLI) program should be alert to a change in rules for designating beneficiaries.

A new interim rule will supplant current beneficiary regulations in cases involving court-ordered beneficiaries, OPM said in an Apr. 6 Federal Register announcement.

Under the new rule, if both an original FEGLI form listing beneficiaries and a court order naming different beneficiaries exist at the time of the participant's death, the persons named in the court order will receive the life insurance benefits. The new rule is required under Public Law 105-205, enacted on July 22, 1998.

According to OPM, the new rule was written because existing laws did not adequately deal with court orders. For example, if a recently divorced fed was ordered by a court to name his ex-wife as a FEGLI beneficiary, he could submit the court order, wait a week, then fill out a new beneficiary designation form replacing the ex-wife with someone else. Under OPM's new rule, court orders supersede beneficiary designation forms.

If an insured individual wants to designate a different beneficiary from one named on a court order, he or she must either get written consent from the court-ordered beneficiary or have the court order modified.

Comments on the interim regulation must be received at OPM on or before June 7.