(a) Death as a result of active duty. This subsection applies to active participants whose deaths occur as a direct result of the active performance of duties. On the death of an active participant, a death benefit is payable to the surviving spouse or, if there is no spouse, the unmarried minor children, in an annual amount equal to the greater of the participant's accrued benefit or 66 2/3% of:
(1) the participant's final average basic pay; or
(2) if a participant is assigned to a higher classification and death occurs while acting in the higher classification, the final average basic pay the participant would have received had the participant been promoted to the higher classification under § 6-1-208 of this Code.
(b) Death not a result of active duty. This subsection applies to active participants whose deaths do not occur as a direct result of the active performance of duties, including a participant whose death occurs as a result of performing military service that qualifies as credited in-plan military service. On the death of an active participant, a death benefit is payable to the surviving spouse or, if there is no spouse, the unmarried minor children, in an annual amount equal to the participant's accrued benefit, computed in accordance with § 5-5-203, as of the participant's date of death.
(c) Payment of death benefit. The death benefit shall be paid to the surviving spouse on a monthly basis commencing on the first day of the month coinciding with or next following the participant's death and ceasing as of the spouse's date of death. If the surviving spouse dies, or if there is no surviving spouse but there are one or more surviving unmarried minor children, the death benefit shall be paid to the children in equal shares, on a monthly basis, commencing on the first day of the month coinciding with or next following the spouse's death, or the participant's death, as applicable, with the benefit to each child ceasing when the child attains the age of 18 years or marries, whichever occurs first.
(d) Cessation of benefit payments. At the cessation of benefit payments under this section, if a total of 60 payments has not been made, benefit payments in the amount payable shall be continued and paid, until a total of 60 payments has been made to the beneficiary or, if there is no living beneficiary, the participant's estate.
(e) Lump sum payment. After any payments made under subsection (d), if benefit payments in an amount equal to accumulated contributions have not been made, the difference shall be paid in a lump sum to the beneficiary or, if there is no living beneficiary, the participant's estate.
(f) No surviving spouse or unmarried minor children. On the death of an active participant who does not have a surviving spouse or unmarried minor children, there shall be refunded to the beneficiary, or if there is no living beneficiary, to the participant's estate:
(1) an amount equal to accumulated contributions; plus
(2) if the participant has one or more years of credited service, a lump sum equal to 50% of the participant's final average basic pay.
(1985 Code, Art. 7, § 5-206) (Bill No. 90-01; Bill No. 23-04; Bill No. 32-04; Bill No. 6-10)