§ 9-4. Distributable events – Death.
(a) In general.
On the death of a member while an employee (or before receiving a distribution under § 9-2 {"Distributable events – Retirement"}, § 9-3 {"Distributable events – Disability"}, or § 9-5 {"Distributable events – Other termination of employment"} of this subtitle), the member's beneficiary is entitled to receive, as soon as administratively practicable after the Board of Trustees has determined that the member has died, a lump-sum cash payment in an amount equal to the value of the member's:
(1) if applicable, Mandatory Employee Contribution Sub-Account;
(2) Employer Contribution Sub-Account; and
(3) if applicable, Rollover Contribution Sub-Account.
(b) Designation of beneficiary.
(1) In accordance with procedures established by the Board, a member may designate a beneficiary to receive death benefits from the Plan.
(2) The designation remains in effect until the member changes it by making a new designation in accordance with the Board's procedures. A new designation revokes all prior designations.
(c) Beneficiary to establish member's death.
To receive a death benefit under this section, the member's beneficiary must establish to the satisfaction of the Board that the member has died.
(d) Failure to designate beneficiary.
(1) If the Board determines that a member has died and there is no valid beneficiary designation, or if all designated beneficiaries predecease the member, the member's account will be paid to the member's surviving spouse, or, if there is no surviving spouse, to the member's estate.
(2) If the member's estate would be entitled to receive the death benefit under paragraph (1) of this subsection, but no estate is opened within 1 year of the member's death, the amount of the death benefit is forfeited and will be applied in accordance with Subtitle 8 {"Forfeitures"} of this article.
(e) Resolution of disputes.
(1) If any question or dispute arises regarding payment of a death benefit under this section, the Board may:
(i) distribute the death benefit to the member's estate;
(ii) retain the death benefit until the Board is satisfied that the right to payment has been finally determined; or
(iii) deposit the amount of the death benefit into any court of competent jurisdiction.
(2) A determination by the Board under this section is final and binding on all persons, subject to the rights of appeal and review under § 2-17 {"Administrative appeal"} and § 2-18 {"Judicial and appellate review"} of this article.
(f) While performing qualified military service.
To the extent required by IRC § 401(a)(37), the value of a member's account payable to the beneficiary of a member who dies while performing "qualified military service", as defined in IRC § 414(u)(5), will be determined as if the member died while an active employee.