PURDUE UNIVERSITY
OFFICE OF THE BUSINESS MANAGER AND ASSISTANT TREASURER
WEST LAFAYETTE, INDIANA 47907

November 8, 1963

To: Deans, Directors and Heads of Schools, Divisions, Departments and Offices

Re: BUSINESS OFFICE MEMORANDUM NO. 85

Terminal Pay in Case of Death to an Employee

When a regular employee dies "in service" terminal pay will be determined as follows:

Fiscal-year employees (all staffs)

1. Payment for all service for which compensation was not made before date of death.
2. Payment for accrued, unused vacation.
3. Payment for accumulated and allowable compensatory time worked but not previously paid (clerical and service staffs only).

Academic-year employees (all staffs)

1. Payment for all service for which compensation was not made before date of death (computed on basis of working days in academic year).

For this purpose, "in service" means any period of active employment, paid vacation and sick leave, and leave of absence with pay, except that leave of absence with pay terminates with the death of the staff member.

Payment is usually made to the executor or administrator of the deceased employee's estate. When an employee dies intestate and the estate is not large enough to require administration, payment may be made directly to a surviving spouse, child, or other close relative. The recipient of a direct payment must first sign an indemnity bond (provided by the Payroll, Insurance and Retirement Office) to indemnify the University against loss in the event it is later required (as a result of legal action) to make the payment to some other individual.

The department or office head should contact the Payroll, Insurance, and Retirement Office particularly in cases of academic-year employees to determine the final payment of salary.