5 U.S.C. § 8705 — Death claims; order of precedence; es-

Page 1216 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8705 first pay period which begins on or after Oct. 10, 1980, see section 10(b) of Pub. L. 96–427, set out as a note under section 8701 of this title. Pub. L. 96–427, § 2(f), Oct. 10, 1980, 94 Stat. 1832, pro- vided that: ‘‘Subsections (b) and (c) of this section [amending this section] shall take effect beginning with the first pay period beginning on or after October 1, 1981.’’ EFFECTIVE DATE OF 1978 AMENDMENT Amendment by section 801(a)(3)(E) of Pub. L. 95–454 effective on first day of first applicable pay period be- ginning on or after 90th day after Oct. 13, 1978, see sec- tion 801(a)(4) of Pub. L. 95–454, set out as an Effective Date note under section 5361 of this title. Amendment by section 906(a)(2), (3) of Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title. EFFECTIVE DATE OF 1972 AMENDMENT Amendment by Pub. L. 92–392 effective on first day of first applicable pay period beginning on or after 90th day after Aug. 19, 1972, see section 15(a) of Pub. L. 92–392, set out as an Effective Date note under section 5341 of this title. EFFECTIVE DATE OF 1967 AMENDMENT Pub. L. 90–206, title IV, § 405(a), Dec. 16, 1967, 81 Stat. 648, provided that: ‘‘The amendments made by sections 401 to 403, inclusive, of this Act [amending this section and sections 8707 and 8708 of this title] shall take effect on the first day of the first pay period which begins on or after the sixtieth day following the date of enact- ment [Dec. 16, 1967]. In the case of an employee who dies or retires during the period beginning on the date of enactment of this Act and prior to the effective date prescribed by this subsection, the amount of insurance shall be determined as if the amendments made by sec- tion 401 [amending this section] were in effect for such employee during such period.’’ EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–737 applicable with respect to premium pay payable from and after first day of first pay period which begins after date of enactment of Pub. L. 89–737, which was approved Nov. 2, 1966, see sec- tion 4 of Pub. L. 89–737, set out in the note under sec- tion 8114 of this title. RETROACTIVE EFFECT OF 1967 AMENDMENT Pub. L. 90–206, title IV, § 405(c), Dec. 16, 1967, 81 Stat. 648, provided that: ‘‘The amendments made by sections 401 to 404, inclusive, of this Act [enacting section 8714a of this title and amending this section and sections 8707 and 8708 of this title] shall have no effect in the case of an employee who died, was finally separated, or retired prior to the date of enactment [Dec. 16, 1967].’’ 1967 ADJUSTMENT IN AMOUNT OF INSURANCE Pub. L. 90–206, title II, § 220(b), Dec. 16, 1967, 81 Stat. 639, provided that: ‘‘For the purposes of determining the amount of insurance for which an individual is eli- gible chapter 87 of title 5, United States Code, relating to group life insurance for Federal employees— ‘‘(1) all changes in rates of pay which result from the enactment of this title [see Short Title Note under section 5332 of this title] except Postal Field Service Schedule II, Rural Carrier Schedule II, and sections 207, 212, 213(d) and (e), 215, 219, and 225) shall be held and considered to become effective as of the date of such enactment [Dec. 16, 1967]; and ‘‘(2) all changes in rates of pay which result from the enactment of section 212 of this title [enacting provisions set out as a note under section 5303 of this title] and which take effect retroactively from the date on which the adjustments thereof are actually ordered under such section, shall be held and consid- ered to become effective on the date on which such adjustments are actually ordered.’’ [Section 220(b) of Pub. L. 90–206 effective Dec. 16, 1967, see section 220(a) (1) of Pub. L. 90–206, set out as an Ef- fective Date note under section 3110 of this title.] § 8705. Death claims; order of precedence; es- cheat (a) Except as provided in subsection (e), the amount of group life insurance and group acci- dental death insurance in force on an employee at the date of his death shall be paid, on the es- tablishment of a valid claim, to the person or persons surviving at the date of his death, in the following order of precedence: First, to the beneficiary or beneficiaries des- ignated by the employee in a signed and wit- nessed writing received before death in the employing office or, if insured because of re- ceipt of annuity or of benefits under sub- chapter I of chapter 81 of this title as provided by section 8706(b) of this title, in the Office of Personnel Management. For this purpose, a designation, change, or cancellation of bene- ficiary in a will or other document not so exe- cuted and filed has no force or effect. Second, if there is no designated beneficiary, to the widow or widower of the employee. Third, if none of the above, to the child or children of the employee and descendants of deceased children by representation. Fourth, if none of the above, to the parents of the employee or the survivor of them. Fifth, if none of the above, to the duly ap- pointed executor or administrator of the es- tate of the employee. Sixth, if none of the above, to other next of kin of the employee entitled under the laws of the domicile of the employee at the date of his death. (b) If, within 1 year after the death of the em- ployee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, or if payment to the person within that period is pro- hibited by Federal statute or regulation, pay- ment may be made in the order of precedence as if the person had predeceased the employee, and the payment bars recovery by any other person. (c) If, within 2 years after the death of the em- ployee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, and nei- ther the Office nor the administrative office es- tablished by the company concerned pursuant to section 8709(b) of this title has received notice that such a claim will be made, payment may be made to the claimant who in the judgment of the Office is equitably entitled thereto, and the payment bars recovery by any other person. (d) If, within 4 years after the death of the em- ployee, payment has not been made under this section and no claim for payment by a person entitled under this section is pending, the amount payable escheats to the credit of the Employees’ Life Insurance Fund. (e)(1) Any amount which would otherwise be paid to a person determined under the order of precedence named by subsection (a) shall be paid (in whole or in part) by the Office to another person if and to the extent expressly provided Page 1217 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8706 for in the terms of any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property set- tlement agreement incident to any court decree of divorce, annulment, or legal separation. (2) For purposes of this subsection, a decree, order, or agreement referred to in paragraph (1) shall not be effective unless it is received, before the date of the covered employee’s death, by the employing agency or, if the employee has sepa- rated from service, by the Office. (3) A designation under this subsection with respect to any person may not be changed ex- cept— (A) with the written consent of such person, if received as described in paragraph (2); or (B) by modification of the decree, order, or agreement, as the case may be, if received as described in paragraph (2). (4) The Office shall prescribe any regulations necessary to carry out this subsection, including regulations for the application of this sub- section in the event that two or more decrees, orders, or agreements, are received with respect to the same amount. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 594; Pub. L. 90–83, § 1(91), Sept. 11, 1967, 81 Stat. 219; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95–583, § 1(b), Nov. 2, 1978, 92 Stat. 2481; Pub. L. 105–205, § 1, July 22, 1998, 112 Stat. 683.) HISTORICAL AND REVISION NOTES 1966 ACT Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 2093. Aug. 17, 1954, ch. 752, § 4, 68 Stat. 738. Aug. 28, 1962, Pub. L. 87–611, § 1, 76 Stat. 406. In subsection (c), the words ‘‘Employees’ Life Insur- ance Fund’’ are substituted for ‘‘fund created pursuant to section 2094(c) of this title’’. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. 1967 ACT Section of title 5 Source (U.S. Code) Source (Statutes at Large) 8705(a) ....... 5 App.: 2093. Mar. 23, 1966, Pub. L. 89–373, § 1, 80 Stat. 78. In subsection (a), ‘‘Civil Service Commission’’ is sub- stituted for ‘‘Commission’’ on authority of former 5 U.S.C. 2091(a). In subsection (c), ‘‘Commission’’ is substituted for ‘‘Civil Service Commission’’ for consistency of style. The full title of the Commission is set forth the first time it is used in a section. Editorial Notes AMENDMENTS 1998—Subsec. (a). Pub. L. 105–205, § 1(1), substituted ‘‘Except as provided in subsection (e), the’’ for ‘‘The’’. Subsec. (e). Pub. L. 105–205, § 1(2), added subsec. (e). 1978—Subsec. (a). Pub. L. 95–583 struck out ‘‘or (c)’’ after ‘‘section 8706(b)’’. Pub. L. 95–454 substituted ‘‘Office of Personnel Man- agement’’ for ‘‘Civil Service Commission’’. Subsec. (c). Pub. L. 95–454 substituted ‘‘Office’’ for ‘‘Commission’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENTS Amendment by Pub. L. 95–583 effective Nov. 2, 1978, see section 3 of Pub. L. 95–583, set out as a note under section 8706 of this title. Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title. § 8706. Termination of insurance; assignment of ownership (a) A policy purchased under this chapter shall contain a provision, approved by the Office of Personnel Management, to the effect that insur- ance on an employee stops on his separation from the service or 12 months after discontinu- ance of his pay, whichever is earlier, subject to a provision for temporary extension of life in- surance coverage and for conversion to an indi- vidual policy of life insurance under conditions approved by the Office. Justices and judges of the United States described in section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue in active employment for purposes of this chapter. (b)(1) In the case of any employee who retires on an immediate annuity and has been insured under this chapter throughout— (A) the 5 years of service immediately pre- ceding the date of the employee’s retirement, or (B) the full period or periods of service dur- ing which the employee was entitled to be in- sured, if fewer than 5 years, life insurance, without accidental death and dis- memberment insurance, may be continued, under conditions determined by the Office. (2) In the case of any employee who becomes entitled to receive compensation under sub- chapter I of chapter 81 of this title because of disease or injury to the employee and has been insured under this chapter throughout— (A) the 5 years of service immediately pre- ceding the date the employee becomes entitled to compensation, or (B) the full period or periods of service dur- ing which the employee was entitled to be in- sured, if fewer than 5 years, life insurance, without accidental death and dis- memberment insurance, may be continued, under conditions determined by the Office, dur- ing the period the employee is receiving com- pensation and is held by the Secretary of Labor or the Secretary’s delegate to be unable to re- turn to duty. (3) The amount of life insurance continued under paragraph (1) or (2) of this subsection shall be continued, with or without reduction, at the end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for dis- ease or injury, in accordance with the employ- ee’s written election at the time eligibility to continue insurance during retirement or receipt of compensation arises, as follows: (A) the employee may elect to have the de- ductions required by section 8707 of this title withheld from annuity or compensation, and the employee’s life insurance shall be reduced each month by 2 percent of the face value