Final Rule Updates Thrift Savings Plan Death Benefits

The Federal Retirement Thrift Investment Board, which manages the Thrift Savings Plan (TSP), a defined contribution retirement savings plan for federal employees, issued a final rule published July 28 in the Federal Register revising its death benefits regulations (75 Fed. Reg. 44065, 7/28/10).

According to the board, the changes include:

• adding more requirements for making a valid beneficiary designation;
• allowing employees holding both a military and civilian TSP account to make a single beneficiary designation;
• permitting designation of a custodian under the Uniform Transfers to Minors Act as a beneficiary;
• allowing agencies to defer to state law ...