I. Upon the death of a retired group II member who retired before April 1, 1987, after the member’s retirement allowance payments have commenced, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member’s estate, in addition to the amount payable under N.H. Rev. Stat. § 100-A:11 a lump sum of $3,600; provided, however, that if said retired member was, prior to the member’s death, in receipt of an accidental disability retirement allowance there shall be paid to the person’s spouse, if surviving, in lieu of such lump sum payment, an allowance to continue until the spouse’s death or remarriage equal to 50 percent of the accidental disability retirement allowance payable to the retired member prior to the member’s death.
I-a. In addition to any other provision of this section, upon the death of a retired group II member of the New Hampshire retirement system or any predecessor system, who retired pursuant to N.H. Rev. Stat. § 100-A:5, II with at least 20 years of creditable service or pursuant to N.H. Rev. Stat. § 100-A:6, II(a) prior to April 1, 1987, there shall be paid to the member’s spouse at the time of retirement, if surviving, an allowance to continue until the spouse’s death or remarriage equal to 50 percent of the service or ordinary disability retirement allowance payable to the retired member prior to the member’s death. The total cost of terminally funding the benefits provided by this paragraph shall be funded from the state annuity accumulation fund.
II. Upon the death of a group II member who has retired on or after April 1, 1987, or upon the death of a group II member who has filed an application for retirement benefits with the board of trustees after January 1, 1991, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member’s estate, in addition to the amount payable under N.H. Rev. Stat. § 100-A:11 a lump sum of $3,600 if the member retired before July 1, 1988, and if the member is married on the date of such member’s retirement, there shall be paid to such surviving spouse an allowance to continue until the spouse’s death or remarriage equal to 50 percent of the member’s service, ordinary disability, or accidental disability retirement allowance payments. For any person who is a group II member as of June 30, 1988, and who retires on or after July 1, 1988, the lump sum payment shall be $10,000. For any person who becomes a member of group II on or after July 1, 1988, and on or prior to July 1, 1993, the lump sum payment shall be $3,600. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be terminally funded.