TSP allocations


Q. Suppose a TSP participant passes away and listed on their TSP-3 beneficiary form that there are allocations of 34 percent to the spouse, 33 percent to the daughter, and 33 percent to the son. Does the spouse have a beneficiary participant account (BPA) with the 34 percent allocation in the age appropriate L Fund, and do the children each receive a lump-sum payment of 33 percent?

A. A spouse beneficiary of at least $200 will automatically be provided a BPA that they will need to manage. The others will receive lump-sum distributions of their shares.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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