1. Except as otherwise provided in subsection 2 and as limited by subsection 4, the survivor beneficiary of a deceased member who had 10 or more years of accredited contributing service is entitled to receive a monthly allowance equivalent to that provided by:

(a) Option 3 in NRS 286.590, if the deceased member had less than 15 years of service on the date of the member’s death; or

(b) Option 2 in NRS 286.590, if the deceased member had 15 or more years of service on the date of the member’s death.

To apply the provisions of Options 2 and 3, the deceased member shall be deemed to have retired on the date of the member’s death immediately after having named the survivor beneficiary as beneficiary pursuant to the applicable option. This benefit must be computed without any reduction for age for the deceased member. The benefits provided by this subsection must be paid to the survivor beneficiary for the remainder of the life of the survivor beneficiary.

2. If the member had designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the monthly allowance to which a survivor beneficiary is entitled pursuant to subsection 1 must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767.

3. The survivor beneficiary may elect to receive the benefits provided by any one of the following only:

(a) This section;

(b) NRS 286.67675; or

(c) NRS 286.6769.

4. The benefits provided by paragraph (a) of subsection 1 may only be paid to the survivor beneficiary and, if applicable, any additional payee of a member who died on or after January 1, 2002.

5. As used in this section, “survivor beneficiary” means a person designated pursuant to NRS 286.6767.

(Added to NRS by 2001, 1287; A 2001 Special Session, 99; 2003, 2067)