Why more federal employees and retirees are protecting their retirement savings using this overlooked, IRS-approved program
The Office of Personnel Management (OPM) issued a reminder this week that all federal employees, retiring employees, and retirees should use the updated “Designation of Beneficiary” form (SF 3102).
The form allows the named beneficiary to receive any lump-sum annuity benefit which may become payable under one of the two federal employee retirement programs.
“The updated SF 3102 is to be used by employees and retirees covered under both the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS),” OPM wrote.
“All employees, retiring employees, and retirees should use this form to name and/or update their beneficiaries under CSRS and FERS.”
The form was officially updated in October 2022. Previously, designating such beneficiaries was divided into two forms. SF 2808 (CSRS) and SF 3102 (FERS) have been consolidated into one designation form.
OPM said that it’s aware that pending retirement application packages may contain previous versions of the SF 2808 (CSRS) and SF 3102 (FERS). OPM will accept valid — if properly completed — previous versions of the SF 2808 and SF 3102 until April 30, 2023.
It’s important to remember that properly completed designations for federal employees and retirees are not valid unless the are received before the death of the designator.
OPM also noted:
— If a form is invalid (e.g., missing signatures, shares don’t add up to 100%, scratch-outs or cross-outs, etc.), OPM will request a new SF 3102 be completed by the annuitant.
— Acceptance of previously certified SF 3102s – if valid, previous versions of the SF 3102 that have been certified on or before April 30, 2023, are acceptable designations. For example, a FERS employee hired in 2011 who completed a SF 3102 and then had the form certified by their agency in 2011, would not need to complete a new SF 3102 assuming they did not wish to change their designation.
The SF 3102 form can be downloaded from OPM’s website here.
More retirement information can be found on OPM.gov.