(a)(1) In the case of death of a member prior to retirement, the member's accumulated contributions and any life insurance policy proceeds shall become payable to the designated beneficiary or to the estate of the person having the deferred benefits if a beneficiary has not been designated or is deceased.
(2)(A) (i) The designated beneficiary of a member who has not completed five (5) years of creditable service at the time of the member's death, or the member's estate if there is no designated beneficiary, is eligible to receive the member's accumulated contributions and life insurance proceeds.
(ii)The designated beneficiary of a member who has not completed five (5) years of creditable service at the time of the member's death, or the estate if there is no designated beneficiary, is
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(a) (1) In the case of death of a member prior to retirement, the member's accumulated contributions and any life insurance policy proceeds shall become payable to the designated beneficiary or to the estate of the person having the deferred benefits if a beneficiary has not been designated or is deceased. (2) (A) (i) The designated beneficiary of a member who has not completed five (5) years of creditable service at the time of the member's death, or the member's estate if there is no designated beneficiary, is eligible to receive the member's accumulated contributions and life insurance proceeds. (ii) The designated beneficiary of a member who has not completed five (5) years of creditable service at the time of the member's death, or the estate if there is no designated beneficiary, is not eligible to receive any additional benefits described in this section other than the benefits set forth in subdivision (a)(2)(A)(i) of this section. (B) (i) A member may change his or her designated beneficiary in the manner prescribed by the Board of Trustees of the Arkansas State Highway Employees' Retirement System. (ii) A member may designate different persons to be the beneficiaries for a member's retirement and for his or her life insurance in the manner prescribed by the board. (3) Unless otherwise elected in accordance with subdivision (a)(4) of this section, the surviving spouse of a member with five (5) or more years of creditable service who was married to the member at least one (1) year immediately preceding the member's death may elect an annuity that is computed in the same manner in all respects as if the member had retired on the date of his or her death with entitlement to an annuity provided for in § 24-5-115 and the member elected: (A) An Option A annuity provided for in § 24-5-118(1) ; (B) An Option B annuity provided for in § 24-5-118(2) with payments to begin when the deceased member would have reached age and service requirements for eligibility to retire; or (C) (i) A one-time lump-sum payment of all the member's accumulated contributions. (ii) A person reimbursed under subdivision (a)(3)(C)(i) of this section shall have no legal claim to any contributions made by the state with a view to the retirement of the member or member's beneficiary. (4) (A) A member with five (5) or more years of creditable service may designate a beneficiary other than the member's current spouse. (B) A member's non-spousal beneficiary may elect an annuity computed in the same manner in all respects as if the member had retired on the date of his or her death with entitlement to an annuity provided for in § 24-5-115 and the member elected: (i) An Option A annuity provided for in § 24-5-118(1) ; or (ii) (a) A one-time lump-sum payment of all the member's accumulated contributions. (b) A person reimbursed under subdivision (a)(4)(B)(ii) (a) of this section shall have no legal claim to any contributions made by the state with a view to the retirement of the member or member's beneficiary. (b) (1) If a retired member with a straight life annuity dies before he or she has been paid benefits equivalent to his or her contributions to the Arkansas State Highway Employees' Retirement System, the difference between the benefits received and his or her contributions while an active member of the system, together with any other balance to his or her credit in the system, shall be paid to his or her designated beneficiary. (2) In the event there is no designated beneficiary, refund of the unpaid balance shall be paid to his or her estate. (3) (A) Payment of the refund shall be made in full or in installments, as determined by the board. (B) The benefits may be paid directly to a curator or guardian, to an administrator or to an executor authorized to receive such payments, wherever such representative may be, without the appointment of a representative in this state. (4) For retired members who elected one (1) of the annuity options in § 24-5-118 , the available death benefits are as described in that section. (c) (1) The system shall provide life insurance in the amount of fifteen thousand dollars ($15,000) for the benefit of each of its actively employed members. (2) The insurance shall remain in force during the life of each member until his or her retirement and shall be paid for by the system. (3) The system may offer a similar or lesser amount of life insurance coverage on the lives of the member's spouse and his or her dependents with the member bearing the costs of any additional coverage. (d) The effective date of the benefits provided for in this section shall in no event be prior to the first day following the member's death.