(a)

(1) In the case of death of a member prior to retirement or of a member's beneficiary whose benefits have been deferred or who for any other reason has not withdrawn the member's contributions, the member's accumulated contributions and any life insurance policy proceeds shall become payable to the designated beneficiary or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) The designated beneficiary may be changed by the member or member's beneficiary in the manner prescribed by the Board of Trustees of the Arkansas State Highway Employees' Retirement System, but the designated beneficiary shall have no legal claim on any contribution made by the state with a view to the retirement of the member or member's beneficiary.

(B) A member may designate different persons to be the beneficiaries for a member's retirement and for his or her life insurance policy in the manner prescribed by the board.

(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.

(c)

(1) The system shall provide life insurance in the amount of fifteen thousand dollars ($15,000) for the benefit of each of its 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.