Procedure 83 – Death Payments
A. General Provisions
The department shall report the death of any employee immediately to the Chancellor's Office (at extension 52121) and CHR's Benefits and Personnel Services (at extension 40830). The Chancellor's Office will notify the Payroll Office of the employee's death to begin the death payment process.
1. Death Payments (Handled by the Payroll Office)
A deceased employee's beneficiary is eligible to receive the death benefit (equivalent to one month's salary) if the employee had completed at least six continuous months on pay status at 50 percent time or more, without a break in service prior to death. Any vacation that the deceased employee had accrued shall be paid to the beneficiary.
2. Employee Database (EDB) Processing
The department shall process the deceased employee's separation information in the Employee Database (EDB) and schedule payment for any final earnings, accrued vacation and/or compensatory overtime in Payroll Time Reporting (PTR) following the instructions in the PTR Users Guide. The department shall send a copy of the ASAP notice for the PTR transaction electronically to the Payroll Office indicating that the payment is for a deceased employee and include the date of death. The Payroll Office will by-pass the PTR transaction and issue the payment to the beneficiary. Charges for the one-month equivalent payment, final earnings, accrued vacation, and/or compensatory overtime will be journaled to the department.
3. Life Insurance Benefits (Handled by CHR's Benefits and Personnel Services)
The University provides the beneficiary of a career employee (an employee appointed at 50% time or more for at least one year) with life insurance equal to the employee's annual base salary, up to $50,000. The coverage amount is based on the employee's UC salary and appointment rate as of January 1 in the year of the employee's death. The University provides the beneficiary of a limited employee with a flat $5,000 death benefit. If the deceased employee had been participating in the UC Employee-Paid Life insurance plan, the beneficiary will be entitled to death benefits in accordance with the Plan.
4. University of California Retirement System Benefits (Handled by CHR's Benefits and Personnel Services)
When an employee who is a member of the University of California Retirement System dies, a basic death payment of $7,500 is paid to the member's beneficiary, in addition to any monthly UCRP income that may be payable to eligible survivors. (Beneficiaries of employees who became members before October 1, 1990, receive $1,500 plus one month's final salary, if this is greater than $7,500.) UCRP death benefits may also include the following accumulations, if any, Capital Accumulation (CAP), 403(b) tax-deferred, and Defined Contribution (DCP) pre- and after-tax.
5. Employee Beneficiary Forms
Department representatives should remind employees to update their Designation of Beneficiary forms (which are available in the Storehouse) as changes in family status occur. The completed Life and AD&D Insurance Designation of Beneficiary (UPAY 718) form should be forwarded to Benefits and Personnel Services. The completed UCRS Designation of Beneficiary (UBEN 114) form should be forwarded to the Office of the President at the address listed on the form.