Answer:
OPM direct deposits are covered by the Treasury Department's Fiscal Service regulations at 31 CFR Part 210, "Federal Government Participation in the Automated Clearing House." Under § 210.4(c)(2) of those regulations, the death of the recipient terminates the authorization for further payments by direct deposit.
More significantly, § 210.10(a) states that "An RDFI shall return any benefit payments received after the RDFI becomes aware of the death or legal incapacity of a recipient or the death of a beneficiary, regardless of the manner in which the RDFI discovers such information. If the RDFI learns of the death or legal incapacity of a recipient or death of a beneficiary from a source other than notice from the agency issuing payments to the recipient, the RDFI shall immediately notify the agency of the death or incapacity."
Summarized: If you have knowledge of the recipient's death, you are required to return the payment. That includes payments from SSA, VA, OPM, etc. That includes payments the bank believes to be for a prior month. And note the "regardless of the manner in which the RDFI discovers such information" statement.
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