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Payment of Wages Upon Employee's Death

Policy Number: HR-63
Effective Date: July 2002
Revisions: June 2002, July 2000
Responsible Officer: Senior Vice President of Student Life & Administrative Services

PURPOSE

This policy was established to outline the method by which designated beneficiaries can receive an employee's final wages and other benefits due.

I. POLICY

Drexel University honors its commitment to an employee's beneficiary (ies) based on the provisions of applicable policies in force at the time of the employee's death.

  1. Faculty, Administrative and Professional Staff Wages of a deceased full-time employee will be paid through the end of the month in which death occurs. This benefit will be increased to the next $100 increment and will consider any vacation benefit that may have accrued to administrative and professional staff. If the deceased full-time employee has been employed by Drexel University on a regular continuing basis for a period of five years or more, there will be an additional death benefit payable to the beneficiary equal to one month's salary. Faculty members whose contracts are less than 12 months will have their contracts prorated to determine the amount payable. Death benefits will not be paid to retired employees, including those retained on active service after official retirement.
  2. Support Staff The deceased full-time employee will be paid for services rendered to the date of death. The deceased employee with more than three (3) months service, who has not taken all vacation days s/he had earned at the time of death, will receive pay equivalent to the unused vacation. If the deceased employee has been employed by Drexel University on a regular continuing basis for a period of five years or more, there will be a death benefit of two weeks' salary, calculated at the rate that the employee was being paid at the time of death. Death benefits will not be paid to retired employees, including those retained on active service after official retirement.

II. PAYMENTS

The beneficiary designated on the employee's life insurance record will be paid the applicable life insurance amount in force at the time of death. Earned wages, accrued vacation pay, and any other funds due the employee will be made payable to the beneficiary (ies) named in the applicable assignment-of- beneficiary records in accordance with federal, state, and local laws. If there is no beneficiary, payments will be made to the estate of the deceased employee. It is the intent of the University that the death benefit be a gift to the beneficiary of the deceased and is given in consideration of long and faithful past service rendered to Drexel University by the deceased. It will be paid out of the operating account and is not considered wages by Drexel University.

Inquiries regarding this policy can be directed to the Human Resources Department.