(2) Upon the request of a deceased member's surviving spouse at the time of the member's death, the deceased member is considered to have retired under Option Three on the first day of the month following the month in which the member died if the following requirements are met:

1. (a) the member has:

   1. (i) 15 or more years of service credit;
   2. (ii) attained age 62 with 10 or more years of service credit; or
   3. (iii) attained age 65 with four or more years of service credit; and
2. (b) the member dies leaving a surviving spouse.

(3) The surviving spouse who requests a benefit under this section shall apply in writing to the office. The allowance shall begin on the first day of the month:

1. (a) following the month in which the member died, if the application is received by the office within 90 days of the member's death; or
2. (b) following the month in which the application is received by the office, if the application is received by the office more than 90 days after the member's death.

(4) The allowance payable to a surviving spouse under Subsection (2) is:

1. (a) if the member has 25 or more years of service credit at the time of death, the surviving spouse shall receive the member's full allowance;
2. (b) if the member has between 20-24 years of service credit and is not age 60 or older at the time of death, the surviving spouse shall receive two-thirds of the member's full allowance;
3. (c) if the member has between 15-19 years of service credit and is not age 62 or older at the time of death, the surviving spouse shall receive one-third of the member's full allowance; or
4. (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or older with 10 or more years of service credit, or age 65 or older with four or more years of service credit at the time of death, the surviving spouse shall receive an Option Three benefit with actuarial reductions.