- June 3, 2013
While Judy was clearly the named beneficiary, thanks to a series of conflicting federal and state laws, a dispute ensued that ultimately called into question who was the rightful recipient of the FEGLI benefits. First, a Virginia state law directly opposed Hillman’s beneficiary designation. Under the law, when a couple divorces, they are no longer treated as one another’s beneficiaries, even if their beneficiary forms say otherwise. This, on its own might lead one to think that Judy would no longer be entitled to receive Warren’s FELGI benefits.
However, an applicable provision of the Federal Employees’ Group Life Insurance Act (FEGLIA), the federal law that created FEGLI benefits, further contradicts the Virginia statute. Part of that law explicitly states that its FEGLI contract provisions supersede any state laws that may differ. In that case, the FEGLI beneficiary form would, once again, control who received the benefits.
U.S. Supreme Court Decision