(a) The designated beneficiary of a member who dies may, if entitled to a death benefit other than the accumulated contributions of the member, elect to receive, instead of a benefit payable under § 824.402 or 824.403, a lump-sum payment of $2,500 plus an applicable monthly benefit described in this section.
(b) If the designated beneficiary is the spouse or a dependent parent of the decedent, the beneficiary may elect to receive for life a monthly benefit of $250, beginning immediately or on the date the beneficiary becomes 65 years old, whichever is later.

(c) If the designated beneficiary is the spouse of the decedent and has one or more children less than 18 years old or has custody of one or more children of the decedent who are less than 18 years old, the designated beneficiary may elect to receive:
(1) a monthly benefit of $350 payable until the youngest child becomes 18 years old; and
(2) when the youngest child has attained the age of 18, a monthly benefit for life of $250, beginning on the date the beneficiary becomes 65 years old.
(d) If the designated beneficiary or beneficiaries are the decedent’s dependent children who are less than 18 years old, their guardian may elect to receive for them:
(1) a monthly benefit of $350, payable as long as two or more children are less than 18 years old; and
(2) a monthly benefit of $250, payable as long as only one child is less than 18 years old.
(e) If the designated beneficiary is the spouse or a dependent parent of the decedent, benefits under Subsection (d) are payable, if a dependent child less than 18 years old exists, on the death of the beneficiary.
(f) A person who qualifies to receive survivor benefits from more than one deceased member as a spouse or a spouse with a dependent child is entitled to be paid only benefits based on the death of one of the decedents.