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This is from the Arrow archives on the Pi Phi website - in a nutshell, it only addresses disposition of the badge upon the death of a member, not resignation:
A Reminder About Our Badge According to the Pi Beta Phi Constitution, Article XVIII, Section 2:
Collegiate members are expected to wear the Pi Beta Phi badge at all appropriate times.
Wearing of a replica of the I.C. badge is restricted to chapter presidents. The replica badge is the property of the chapter.
No member shall give, sell or lend a Pi Beta Phi badge to any person not a duly initiated member of the Fraternity.
The Pi Beta Phi badge shall be used only as a badge and shall not be used as a mounting on any piece of jewelry.
Upon the death of its owner, a badge may be buried with its owner, bequeathed to a member of the Fraternity or to a collegiate chapter or alumnae club to be used as an honor badge or sent to Headquarters for such disposition as directed by Grand Council.
dakareng can probably give us some good information - she's probably busy working (which is what I should be doing ...)
After these most recent posts, I'm changing my will to say that if I don't have any Pi Phi descendants my badge is going directly to HQ.
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