(1) If a member of the pension program who is vested dies before the member’s effective date of retirement, the Public Employees Retirement Board shall pay the death benefit provided for in this section to:

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(a) The spouse of the member to the extent not provided to a former spouse in accordance with a judgment or order under ORS § 238.465;

(b) The former spouse of the member as provided in a judgment or order under ORS § 238.465; or

(c) Any other person who is constitutionally required to be treated in the same manner as a spouse for the purpose of retirement benefits.

(2) The death benefit to be paid under this subsection is for the life of the member’s spouse, former spouse or other person who is constitutionally required to be treated in the same manner as a spouse, and is:

(a) If the member dies before the earliest retirement date for the member under ORS § 238A.165, the actuarial equivalent of 50 percent of the pension that would otherwise have been paid to the deceased member, which shall be calculated as if the member became an inactive member on the date of death and retired at the earliest retirement date for the member as described in ORS § 238A.165;

(b) If the member dies on or after the earliest retirement date for the member under ORS § 238A.165 and before normal retirement age under ORS § 238A.160, the actuarial equivalent of the pension that would otherwise have been paid to the deceased member, which shall be calculated as if the member retired under ORS § 238A.185 and as if the member’s retirement date was the first of the month following the date of death of the member; or

(c) If the member dies on or after reaching normal retirement age as described in ORS § 238A.160, the actuarial equivalent of the pension that would otherwise have been paid to the deceased member, which shall be calculated under ORS § 238A.125 as if the member’s retirement date was the first of the month following the date of death of the member.

(3) The death benefit provided under this section is first effective on the first day of the month following the date of death of the member.

(4) The surviving spouse or other person who is constitutionally required to be treated in the same manner as a spouse for the purpose of retirement benefits may elect to delay payment of the death benefit, which shall be actuarially adjusted for age and interest when payments commence, but payment must commence no later than December 31 of the calendar year in which the member would have reached 72 years of age. If a person who delays payment under this subsection dies before payments commence:

(a) The person’s beneficiary shall receive, in a lump sum, the sum of the payments the person would have received had the person not elected to delay payment of the death benefit.

(b) If the person who delays payment under this subsection has not designated a beneficiary, the person’s benefit shall be paid to a personal representative appointed for the person’s estate.

(5) Notwithstanding any other provision of ORS § 238A.100 to 238A.250, distributions of death benefits under the pension program must comply with the minimum distribution requirements of 26 U.S.C. § 401(a)(9) and the regulations implementing that section, as in effect on January 1, 2023. The board shall adopt rules implementing those minimum distribution requirements. [2003 c.733 § 25; 2005 c.332 § 15; 2009 c.5 § 5; 2009 c.909 § 5; 2010 c.82 § 5; 2011 c.7 § 5; 2012 c.31 § 5; 2013 c.377 § 5; 2014 c.52 § 5; 2015 c.442 § 5; 2015 c.506 § 1; 2016 c.33 § 6; 2017 c.527 § 6; 2018 c.101 § 6; 2019 c.319 § 6; 2021 c.135 § 11; 2021 c.456 § 7; 2022 c.83 § 7; 2023 c.171 § 7; 2023 c.404 § 11]

(Disability Benefit)