In our handbook, we state: "Company defines "immediate family" as the employee's spouse, parent, child, sibling; the employee's spouse's parent, child, or sibling; the employee's child's spouse; employee's grandparents or grandchildren." That way it's clear from the beginning.

Our policy allows bereavement for the following:
Full-time Employees will be paid up to three days time to attend the funeral or memorial service of an immediate family member. For regular part-time Employees, bereavement leave will be granted only during normally scheduled work periods. The days must be taken between the family member’s death and no more than two days following the funeral or memorial service. Limited part-time, temporary and occasional Employees are not eligible for bereavement leave.
For purposes of the bereavement leave policy only, an immediate family member is defined as mother, father, spouse, child, brother, sister, grandparents, mother-in-law or father-in-law. In the case of death of another relative or friend, Employees may request unpaid time to attend the funeral or memorial service. Proof of attendance may be required.
In the event that an Employee needs additional days to attend a funeral or memorial service or tend to family members, such time off will be handled under the normal vacation policy or as an unpaid leave at the discretion of the Vice President for Doctoral Programs and Administration or the President.

In your situation, our employee would have been granted the time off, but would have had to use a vacation day in order to be paid for it.

We have 12 bargaining units within our organization and each of them has its own language defining family for bereavement purposes. A cousin, however, is not included in the definition of family in any of the contracts.

Some contracts do, however, contain language stating that one day of leave can be taken for a relative that is not defined as family.

Similarly, our policy defines immediate family as parent, child, spouse, sibling, parent-in-law, child-in-law, grandparent, grandchild or any person with whom the employee makes his/her home. Cousin does not fit the definition (unless living with the employee) so the employee would have needed to charge some other accrued leave, not sick time, for the absence. Or they could choose to take the time off without pay for the absence.

My current employer does not make reference to "domestic partner" but a former employer of mine was much more inclusive and did include "domestic partners" in all benefits - including health. The definition did, however, require the partner to be same sex. Their rationale was that opposite sex partners have the option to get married and enjoy eachother's benefits where same sex partners do not.

Question: Is it common for Breavement pay to come from you Personal accrued hours?

Without trying to sound harsh, the question is entitlement. Should employees be entitled to full pay for the time off work? Most employers are willing to grant the time off, but that doesn't mean the employer has to pay for it. There has to be some place an employer can draw the line, and the examples listed above did just that when they specified who would be covered. Sympathy, yes, but paying for every relative, no.

Our policy defines immediate family members. That way the employee is clear in the beginning.