Federal Employees News Digest
Federal Benefits Q&A
- By FEND Staff
- Dec 08, 2014
Question: "Is it possible to set up an annuity with the balance of your TSP? And, in case of the retiree's death, can the beneficiaries keep getting the balance of the TSP?"
Answer: Only the TSP account owner can establish an annuity with a part or all of the account. This is done sometime after account owner retires from federal service. Unless the owner establishes a joint life annuity with a spouse, or a joint life annuity with someone other than a spouse, then upon the death of the account owner (the annuitant) the annuity will stop and Metropolitan Life Insurance Co. (which offers the TSP annuity to account owners) will keep the remaining funds in the annuity. If the owner has chosen the "cash refund" option with the annuity, then upon the death of the annuitant and, if applicable, the joint annuitant, any remaining funds will be paid to a beneficiary.