A lump-sum death payment is meant to help defray the costs of the employee's burial expenses. It can only be paid to a widow(er) who was living with the employee when he or she died or to the person who paid all or part of the employee's burial expenses. The lump-sum death payment cannot be paid if anyone is eligible for monthly survivor benefits in the month of the employee's death. A lump-sum death payment is not taxable for Federal income tax purposes.
There are two different types of lump-sum death payments.
- A 1937 Act Lump-Sum Death Payment is payable if the employee was employed for at least 120 months in the railroad industry prior to January 1, 1975. This benefit is based on the employee's earnings and ranges between $180.00 and $1400.00. Refer to the Section 5 for additional information.
- A 1981 Amendment Lump-Sum Death Payment is payable if the employee did not have 120 months of service in the railroad industry before January 1, 1975. This benefit is limited to $255.00. Refer to the section, People Eligible To Receive A 1981 Amendment Lump-Sum Death Payment, for additional information.