(a)

1. (1)

   1. (A) In the case of a retiree, benefits are payable through the month in which the retiree's death occurs.
   2. (B) If a final benefit payment is not delivered in the normal course of business, the benefit payment shall be sent in the following order until delivered:

(i) To the member’s residue beneficiary, if any;

1. (ii) To the member’s lump-sum death beneficiary, if any;

   1. (iii) To the member’s estate, if any; or

      1. (iv) To the trust assets of the Arkansas Teacher Retirement System.

2. (2)

   1. (A) In the case of an option beneficiary, benefits are payable through the month in which the last option beneficiary’s death occurs.

   2. (B)

      1. (i) If an option beneficiary dies before receiving the last check, the system shall pay the final check in the normal manner paid before death.
      2. (ii) If payment of the final check in the normal course becomes impossible, the final option beneficiary’s annuity check shall be returned the system.

(b) The Board of Trustees of the Arkansas Teacher Retirement System shall direct a benefit payment amount forfeited to the trust assets of the system if the:

1. (1) Benefit payment cannot be made five (5) years after the benefit payment is due because the location of the member or the identity and location of the member’s beneficiary or personal representative cannot be ascertained by mailing the benefit payment to the last known address of the member, beneficiary, or personal representative in the system’s records; and
2. (2) Neither the member, beneficiary, or personal representative submitted paperwork or forms approved by the system updating his or her location or last known address to the system before the expiration of five (5) years from when the benefit payment is due.