1. (a) If a member dies:

   1. (1) while in service in a position covered by the plan; or

   2. (2) after terminating service in a position covered by the plan but before withdrawing the member's account;

      to the extent that the member is vested, the member's account shall be paid to the beneficiary or beneficiaries designated by the member on a form prescribed by the board. The amount paid must be valued as provided in IC 5-10.2-2-3 . The board shall invest the total amount in the member's account in the stable value fund not later than thirty (30) days after receiving notification of a member's death.

2. (b) If there is no properly designated beneficiary, or if no beneficiary survives the member, the member's account shall be paid to:

   1. (1) the surviving spouse of the member;
   2. (2) if there is not a surviving spouse, the surviving dependent or dependents of the member in equal shares; or
   3. (3) if there is not a surviving spouse or dependent, the member's estate.

3. (c) The beneficiary or beneficiaries designated under subsection (a) or a survivor determined under subsection (b) may elect to have the member's account paid as:

   1. (1) a lump sum;
   2. (2) a direct rollover to another eligible retirement plan; or

   3. (3) a monthly annuity in accordance with rules of the board.

      A monthly annuity is an option only on or after the date the beneficiary or survivor becomes sixty-two (62) years of age. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. Further, the board may establish a minimum account balance or a minimum monthly payment amount that is required in order for a beneficiary or survivor to select the monthly annuity option.

As added by P.L.217-2017, SEC.58.