§ 394. Survivor's benefits. In the case of the death of any electing
employee, after the effective date of this election and before
retirement, the value of the death benefits provided by the contract or
contracts purchased under the optional retirement program which is
attributable to the state's contribution as determined by the board,
shall be deemed to be an ordinary death benefit provided under a public
pension plan within the meaning of section one hundred fifty-four of the
civil service law. Notwithstanding the provisions of such section of
the civil service law, a survivors benefit payable thereunder on account
of the death of any electing employee while in the employ of state
university, after the effective date of such election and before
retirement, including an employee subject to the provisions of
subdivision three of section three hundred ninety-three of this article,
shall be paid to such person or persons as such employee shall have
nominated to receive the death benefits provided by the contract or
contracts purchased under the optional retirement program. In the event
such designated beneficiary or beneficiaries do not survive the
employee, or if a beneficiary was not so designated, the survivors
benefit shall be paid to the deceased employee's estate or as provided
in section one hundred three-a of the decedent estate law.