MODIFICATION OF BENEFICIARY DESIGNATION AUTHORITIES FOR DEATH GRATUITY PAYABLE UPON DEATH OF A UNITED STATES GOVERNMENT EMPLOYEE IN SERVICE WITH THE ARMED FORCES.

SEC. 1121. MODIFICATION OF BENEFICIARY DESIGNATION AUTHORITIES FOR DEATH GRATUITY PAYABLE UPON DEATH OF A UNITED STATES GOVERNMENT EMPLOYEE IN SERVICE WITH THE ARMED FORCES. (a) Authority To Designate More Than 50 Percent of Death Gratuity to Unrelated Persons.— (1) In general.—Paragraph (4) of section 8102a(d) of title 5, United States Code, is amended— (A) by striking the first sentence and inserting “A person covered by this section may designate another person to receive an amount payable under this section.”; and (B) in the second sentence, by striking “up to the maximum of 50 percent”. (2) [5 U.S.C. 8102a note] Effective date.—The amendments made by this subsection shall take effect on the date of enactment of this Act and apply to the payment of a death gratuity based on any death occurring on or after that date. (b) Notice to Spouse of Designation of Another Person to Receive Portion of Death Gratuity.—Section 8102a(d) of such title is further amended by adding at the end the following: “(6) If a person covered by this section has a spouse, but designates a person other than the spouse to receive all or a portion of the amount payable under this section, the head of the agency, or other entity, in which that person is employed shall provide notice of the designation to the spouse.” .