Any allowance payable under this part to a retired member, that has accrued and remains unpaid at the time of his or her death, shall be paid to either of the following:
(a) The option beneficiary entitled to payment in accordance with an option elected by the member.
(b) The beneficiary entitled to receive the lump-sum death benefit provided upon death of a retired member if the member has not elected an option.
(Amended by Stats. 1998, Ch. 965, Sec. 211.)