(a) Generally. This section applies to 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.
(b) Non-vested active participant. On the death of a non-vested active participant, the surviving spouse or, if there is no spouse, the unmarried minor children, shall receive a lump sum death benefit equal to accumulated contributions plus 50% of the participant's final average basic pay.
(c) Vested active participant.
(1) Subject to the election permitted in subsection (c)(2), on the death of an active vested participant, the surviving spouse or, if there is no spouse, the unmarried minor children, shall receive a lump sum death benefit equal to accumulated contributions plus 50% of the participant's final average basic pay.
(2) Instead of the lump sum death benefit, the surviving spouse or, if there is no spouse, the unmarried minor children may elect to receive a death benefit in an annual amount equal to the normal retirement pension or early retirement pension that would have been payable annually to the participant if the participant had retired on the applicable date in subsection (c)(3) and elected a 100% joint and survivor option.
(3) Benefit payments under subsection (c)(2) shall be made on a monthly basis and shall commence:
(i) if the participant was not yet eligible for normal or early retirement, on the participant's normal retirement date or early retirement date, as elected; or
(ii) if the participant was eligible for normal or early retirement, the first day of the month coinciding with or next following the participant's death.
(4) Benefit payments to the spouse under subsection (c)(2) shall cease as of the spouse's date of death.
(5) Benefit payments to the unmarried minor children under subsection (c)(2) shall be paid to the unmarried minor children in equal shares with the benefit to each child ceasing when the child attains the age of 18 years or marries, whichever occurs first.
(6) If the spouse or minor children who are to receive a deferred benefit under this subsection die before the participant's early retirement date or normal retirement date, as elected, accumulated contributions shall be paid in a lump sum to the beneficiary or, if there is no living beneficiary, the participant's estate.
(7) At the cessation of benefit payments under this subsection, 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 beneficiary, the participant's estate.
(8) After any payments made under subsection (c)(7), 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 beneficiary, the participant's estate.
(d) Active participant with 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, the participant's estate, an amount equal to accumulated contributions plus, if the participant has one year or more of credited service, a lump sum equal to 50% of the participant's final average basic pay.
(1985 Code, Art. 7, § 6-209) (Bill No. 90-01; Bill No. 6-10)