Amount and Timing of Payment

The area vice president (VP) or appropriate HQ vice president is responsible for initiating the processing of the death gratuity payment. The area VP or HQ VP cannot authorize a death gratuity amount that exceeds $10,000. If the area or HQ VP believes a situation requires funding in excess of $10,000, the chief human resources officer and executive vice president (CHRO) must approve that amount.

Although some of the conditions for payment may take time to determine, Postal Service policy is to make the death gratuity available to the deceased employee’s estate as soon as reasonably possible. When it appears that the deceased employee’s estate has met, or will meet, the conditions for the death gratuity, the Postal Service will pay the death gratuity to the personal representative of the deceased employee’s estate, in accordance with the following conditions:

  1. The estate eventually meets the requirements for a death gratuity described in this MI; and
  2. If the personal representative of the employee’s estate makes a promise on behalf of the estate to refund the payment to the Postal Service if the estate does not satisfy the requirements for a death gratuity.

When there is a reasonable belief that the employee’s estate will not or cannot meet one or more of the conditions for a death gratuity, San Mateo will contact the Area law office covering the deceased employee’s work location. You must do the following:

  1. Consider if it’s appropriate to delay or deny the payment of a death gratuity.
  2. Make the decision deliberately and with legal advice.