To amend chapter 87 of title 5, United States Code, with respect to the order of precedence to be applied in the payment of life insurance benefits.

Amends Federal law concerning Government organization and employees to require that any amount of group life insurance and group accidental death insurance that would otherwise be paid under the order of precedence named, be paid in whole or in part, by the Office of Personnel Management (OPM), to another person if and to the extent expressly provided for in the terms of any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation. Prohibits a decree, order, or agreement from being effective unless it is received, before the date of the covered employee's death, by the employing agency, or, if the employee has separated from service, by OPM.

Prohibits a designation with respect to any person from being changed except: (1) with the written consent of such person, if received as described; or (2) by modification of the decree, order, or agreement, as the case may be, if received as described. Permits a court decree of divorce, annulment, or legal separation, or the terms of a court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation, to direct that an insured employee or former employee make an irrevocable assignment of the employee's or former employee's incidents of ownership in insurance (if there is no previous assignment) to the person specified in the court order or court-approved property settlement agreement.