Sec. 312.4. Insurance payable in the event of death

(a) In the case of the death of a qualified member during the effective period of insurance, the estate, or designated beneficiary or beneficiaries, shall receive the benefits provided pursuant to section 60, 60-a, 60-b, 360, 360-a, 360-b, 448 or 508 of the Retirement and Social Security Law from the plan, as hereinafter provided. Nevertheless, the amount of insurance payable upon the death of a member, and the eligibility to receive such payment, shall be determined in accordance with the provisions of section 60, 60-a, 60-b, 360, 360-a, 360-b, 448, 508 or 606 of the Retirement and Social Security Law, as the case may be, or any substantially similar provisions enacted to provide ordinary (non-accidental) death benefits to beneficiaries of members of the New York State and Local Retirement Systems, subject to the limitations with respect to post-retirement death benefits provided in section 312.2 of this Part. However, in no case, shall the amount of insurance payable by the plan upon the death of a member exceed $50,000. In the event an amount in excess of $50,000 is payable to the estate, beneficiary, or beneficiaries of a deceased member pursuant to section 60, 60-a, 60-b, 360, 360-a 360-b, 448, 508 or 606 of the Retirement and Social Security Law, or any substantially similar provisions enacted to provide ordinary (non-accidental) death benefit to beneficiaries of members of the New York State and Local Retirement Systems, subject to the eligibility requirements with respect to such treatment of post-retirement death benefits provided in section 312.2 of this Part, the sum of $50,000 shall be payable as group term life insurance as specified in this Part, and the excess over $50,000 shall be paid as provided in said sections.

(b) Notwithstanding the provisions of subdivision (a) of this section, the State or a participating employer may designate the amount of insurance payable by the plan upon the death of a member in its employ, providing that such amount may not exceed $50,000. In the event an amount in excess of that so designated is payable to the estate, beneficiary, or beneficiaries of a deceased member, pursuant to section 60, 60-a, 60-b, 360, 360-a, 360-b, 448, 508 or 606 of the Retirement and Social Security Law, or any substantially similar provisions enacted to provide ordinary (non-accidental) death benefit to beneficiaries of members of the New York State and Local Retirement Systems, subject to the eligibility requirements with respect to such treatment of post-retirement death benefits provided in section 312.2 of this Part, such excess shall be paid as provided in said sections. Said designations shall be effective when filed with the retirement system, and shall remain in effect until amended or rescinded by the employer.