(a) If a member dies in service before retirement but after age 60 and after completing five years of creditable service or after completing 12 years of creditable service, then the principal beneficiary designated by that member to receive a return of accumulated contributions under G.S. 120-4.25 is entitled to Option 2 prescribed by G.S. 120-4.26. (b) If a retirement allowance becomes payable under this section to the principal beneficiary and that principal beneficiary dies before the total of the retirement allowances paid is equal to or greater than the amount of the member's accumulated contributions, then the excess of those accumulated contributions over the total of the retirement allowance paid to the principal beneficiary shall be paid in a lump sum to the person or persons the member has designated as the contingent beneficiary for return of accumulated contributions under G.S. 120-4.25. (c) If a retirement allowance becomes payable under this section and the principal beneficiary is not living at the time the payment falls due, then the retirement allowance shall be paid to the contingent beneficiary designated to receive a return of accumulated contributions under G.S. 120-4.25. If that contingent beneficiary dies before the total of the retirement allowances paid is equal to or greater than the amount of the member's accumulated contributions, then the excess of those accumulated contributions over the total of the retirement allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent beneficiary's legal representative. (d) If no beneficiaries are living at the time the payment required under this section first falls due, then the allowance shall be paid in a lump sum to the principal beneficiary's legal representative.
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